Upgrade economics
Embroidery Machine ROI & Payback Calculator
Model embroidery machine payback from incremental completed pieces and contribution instead of optimistic total-revenue assumptions.
Conservative ROI
Model only volume the machine creates.
Do not multiply all existing shop revenue by a new machine. The useful decision is whether the upgrade adds completed profitable pieces that otherwise could not be produced on time. This calculator therefore asks for incremental contribution, not total sales.
Financing cost, taxes, depreciation treatment and opportunity cost are not included unless you embed them in the inputs. This is an operating decision aid, not accounting or tax advice.
FAQ
Common questions
What is contribution per piece?
Collected selling revenue minus costs that rise with the extra piece, such as blank, thread, backing, payment fees and attributable labor. Use your own accounting definition consistently.
Should I count existing orders?
Only if the machine changes what you can actually complete, outsource or accept. Existing profitable orders that would have been produced anyway are not incremental return.
Why is resale value defaulted to zero?
Because resale value is uncertain. Enter a value only when you have a conservative, supportable basis.