The ROI of Coolant Recycling

Previously we discussed the importance of making sure you have a SMART goal (Specific, Measurable, Achievable, Results-focused and Time-bound.) for your coolant recycling program.  While there are many things to measure, the most important one to get your project moving is the money.  Most companies agree that recycling and minimizing manufacturing waste is important for the environment.  What they don’t know is that there can be significant cost savings associated with recycling.  That is where having a good Payback/ROI (Return on Investment) worksheet comes in.

Figuring out the ROI is easier than people think once you have the data.  When the life of the equipment is 5 – 10 years you can see significant savings and a large ROI over the lifetime of the project.  Interested in running the calculator and seeing what your ROI could be?  Contact us for a copy and we’ll be happy to walk you thru the process.

If you took the time to fill in the Coolant Recycling Application Questionnaire from our previous post and want to try to run the Payback_ROI Calculator yourself, here are the steps:

  1. Pull out your Coolant Recycling Application Questionnaire with the answers filled in.
  2. Plug your Current Costs into Section A
  3. Put your hourly maintenance rate in Section B and assumptions for monthly costs to run recycling program.
  4. Section C will automatically calculate based on the data you put in A & B and add up all potential savings to give you Gross Monthly Savings.
  5. Section D will pull from the data you put in Section B and will calculate Net Monthly Savings.
  6. The Net Payback Calculator at the bottom will give you Payback periods so you can compare your savings with your equipment cost.
  7. The ROI calculation is shown as Cost Savings Over 5 Years. We show the net savings for years 1 – 5 and then subtract the cost of the equipment to show the Total Return on Investment.

Questions?  Need help?  Contact us at 800-343-8106.

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