The payback period (ROI = Return of Investment) is important for purchasing a BTD add-on firewood processor.
Below is a calculation model based on the data below.
You can enter your own data to create your own calculation.
Purchase price = €22.950
The KIA is 28% of the purchase price:
KIA = 28% of €22.950 = €6.426
Effective investment = Purchase price – KIA
Effective investment = €22.950 – €6.426 = €16.524
The annual labor cost savings from using the machine as a one-man show.
No amount is included for this.
Revenue per m³ = €120
Costs per m³ = Purchase Cost (€60) + Costs and Depreciation (€15) + Processing and Storage Costs (€17,50)
Total Costs per m³ = €60 + €15 + €17,50 = €92,50 per m³
Profit per m³ = Selling Price – Total Costs per m³
Profit per m³ = €120 – €92,50 = €27,50 per m³
The annual profit from the sale of 300 m³ is:
Annual Profit from Revenue = 300 m³ × €27,50 per m³ = €8.250
Total annual savings = Labor cost savings + Annual profit from sales
Total annual savings = €0 + €8.250 = €8.250 per year
Payback period = Effective investment/Annual savings
Payback period = €16.524/€8.250 ≈ 1.97 years
Summary of the Calculation:
Purchase Price of Machine: €22.950
Investment Deduction (28%): €6.426
Effective Investment after Deduction: €16.524
Annual Labor Cost Savings: €0
Annual Profit from Revenue: €8.250
Total Annual Savings: €11.250
Payback Period: approximately 1.97 years
In short,
By using the BTD machine (one-man-show), you also achieve labor cost savings compared to “on-site sawing and splitting machines” in this market segment. Examples include mobile sawing and splitting machines set up in a large open area, powered by a tractor PTO, equipped with a feed conveyor, log lift, and discharge conveyor. In the calculation example above, an additional labor cost saving can be included at your own discretion when using a BTD attachment sawing and splitting machine.
With profit from the sale of 300 m³, the payback period for the investment in the machine would now be approximately 1.97 years. This means that, based on the data used, the investment is still quickly profitable, even though no labor cost savings have yet been included.
For further explanation or advice, we at BTD Technics are happy to assist you.
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