BIZOMAT Tools · Money
Recurring Savings Check
What is this improvement worth over a year?
Turns a saving per occurrence into an annual recurring saving and first-year net benefit after implementation cost.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Saving per occurrence | $ | Measured saving each time the task happens (time × rate, or material) |
| Occurrences per week | times | How often the task happens per week (records or tally) |
| Working weeks / year | weeks | Working weeks per year at your site |
| One-off implementation cost | $ | One-off cost to implement the change |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Saving per occurrence
- What it is
- The money saved each time the task happens, for example minutes saved times the hourly rate, or the material no longer used.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $25 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Scales the annual saving directly.
- Get it right
- Base it on measured time or material, not a guess; convert minutes to hours before multiplying by an hourly rate.
What this means: Occurrences per week
- What it is
- How many times the task happens in a typical working week, from records, a tally or system data.
- Units and format
- Enter a number in times: times. The form accepts 0 times or more.
- Example
- The form opens with 50 times as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Scales the annual saving directly.
- Get it right
- Use an average week, not the busiest one.
What this means: Working weeks / year
- What it is
- The number of weeks per year your site actually works, after shutdowns and public holidays.
- Units and format
- Enter a number in weeks: weeks. The form accepts 1 weeks to 52 weeks.
- Example
- The form opens with 48 weeks as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Scales the annual saving directly; weekly saving and payback in weeks do not change.
- Get it right
- A year has 52 weeks, but most sites work fewer once shutdowns are removed.
What this means: One-off implementation cost
- What it is
- The one-off cost of making the change: purchase, set-up, training and any downtime.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $5000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A higher cost reduces the first-year net saving and lengthens payback.
- Get it right
- Include internal time spent implementing the change, not just purchases.
Method and formulas
- Annual saving = saving per occurrence × occurrences per week × working weeks
- First-year net = annual saving − implementation cost
- Payback = implementation ÷ weekly saving
Limitations
- Assumes the frequency stays constant
- Does not distinguish cash savings from capacity released
Typical uses
- Small improvement ideas
- Procedure or layout changes
- Supplier or material changes with a per-use saving
Who it is for
- Team leaders
- Continuous-improvement staff
What you get
- POSITIVE or NEGATIVE first year
- Annual saving and first-year net
- Payback in working weeks
Interpreting the result
- Show where the saving appears: a budget line, or extra output from freed time
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.