When will I have earned back my BTD attachment firewood processor (ROI)?

The payback period of a BTD attachment firewood processor depends on the purchase price, annual production volume, purchase cost of timber, selling price and operating costs.

Because these values differ for every company and application, there is no single fixed payback period. BTD Technics therefore uses an ROI calculation based on the customer’s own figures.

Which factors determine the payback period?

• Purchase price: the investment in the selected machine and configuration.
• Annual production volume: the number of cubic metres of firewood produced per year.
• Timber purchase price: the cost of the raw material per m³.
• Selling price: the average sales price of the processed firewood per m³.
• Labour and fuel costs: the costs involved in producing each cubic metre of firewood.

How is the ROI calculated?

A simple indication of the payback period can be calculated by first determining the margin per cubic metre:

Margin per m³ = selling price – timber purchase price – labour and fuel costs

The estimated annual profit is then:

Annual profit = annual production volume × margin per m³

The indicative payback period is:

Payback period = machine investment ÷ annual profit

Why can the payback period differ considerably?

The result depends strongly on how intensively the machine is used and how efficiently the complete production process is organised.

• Higher annual production can shorten the payback period.
• A higher sales margin per m³ improves the return on investment.
• Efficient one-person operation can reduce labour costs.
• Using an existing suitable carrier vehicle can avoid the need for an additional drive unit.
• Wood type, log dimensions and work layout also influence practical production capacity.

Calculate your own payback period

BTD Technics has developed an ROI calculator that allows you to enter your own figures for machine price, annual production, timber costs, selling price and labour and fuel costs.

This provides an indication of:

• margin per m³;
• estimated annual profit;
• indicative payback period.

Calculate the payback period of a BTD firewood processor

The calculation is an indication only. Actual results depend on your own costs, production conditions and sales prices.

Related links

How much does it cost to produce firewood?

How can I produce a lot of firewood with minimal costs?

Why buy a BTD attachment firewood processor?