Equipment Replacement vs Repair Cost Calculator

ANA›Life Services Authority›National Calculator Authority›Equipment Replacement vs Repair Cost Calculator

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Equipment Replacement vs Repair Cost Calculator

Compare the total cost of repairing existing equipment versus replacing it with new equipment over a defined time horizon, factoring in repair costs, downtime losses, energy efficiency, and residual values.

### Existing Equipment (Repair Option)

Immediate Repair Cost ($)

Annual Maintenance Cost After Repair ($/yr)

Annual Energy Cost – Existing Equipment ($/yr)

Expected Downtime Days per Year – Existing (days/yr)

Salvage / Resale Value of Existing Equipment at End of Period ($)

### New Equipment (Replace Option)

Purchase Price of New Equipment ($)

Installation / Commissioning Cost ($)

Annual Maintenance Cost – New Equipment ($/yr)

Annual Energy Cost – New Equipment ($/yr)

Expected Downtime Days per Year – New (days/yr)

Salvage / Resale Value of New Equipment at End of Period ($)

Rebates / Incentives on New Equipment ($)

### Shared Parameters

Analysis Horizon (years)

Revenue / Profit Lost per Downtime Day ($/day)

Discount Rate / Cost of Capital (% per year)

Calculate

### Results

Metric Repair Option Replace Option

function equFmt(v) { return "$" + v.toLocaleString("en-US", {minimumFractionDigits:2, maximumFractionDigits:2}); }

function equPV(annualCost, rate, years) { // Present Value of an annuity: PV = C * [1 - (1+r)^-n] / r // If rate == 0, PV = C * n if (rate === 0) return annualCost * years; return annualCost * (1 - Math.pow(1 + rate, -years)) / rate; }

function equPVSingle(amount, rate, years) { // PV of a single future amount return amount / Math.pow(1 + rate, years); }

function equCalc() { var errEl = document.getElementById("equ-error"); errEl.style.display = "none"; errEl.textContent = "";

function getVal(id) { return parseFloat(document.getElementById(id).value); }

var repairCost = getVal("equ-repair-cost"); var maintOld = getVal("equ-annual-maint"); var energyOld = getVal("equ-annual-energy-old"); var downtimeOld = getVal("equ-downtime-old"); var salvageOld = getVal("equ-salvage-old");

var purchasePrice = getVal("equ-purchase-price"); var installCost = getVal("equ-install-cost"); var maintNew = getVal("equ-annual-maint-new"); var energyNew = getVal("equ-annual-energy-new"); var downtimeNew = getVal("equ-downtime-new"); var salvageNew = getVal("equ-salvage-new"); var incentive = getVal("equ-incentive");

var horizon = getVal("equ-horizon"); var downtimeCost = getVal("equ-downtime-cost"); var discountPct = getVal("equ-discount-rate");

// Validation var errors = []; if (isNaN(repairCost) || repairCost 0."); if (isNaN(installCost) || installCost 30 || !Number.isInteger(horizon)) errors.push("Analysis Horizon must be a whole number between 1 and 30."); if (isNaN(downtimeCost) || downtimeCost 50) errors.push("Discount Rate must be between 0% and 50%.");

if (errors.length > 0) { errEl.innerHTML = errors.join(""); errEl.style.display = "block"; document.getElementById("equ-result").style.display = "none"; return; }

var r = discountPct / 100;

// ── REPAIR OPTION ────────────────────────────────────────────── // Annual operating cost (existing) = maintenance + energy + downtime loss var annualOpOld = maintOld + energyOld + (downtimeOld * downtimeCost);

// NPV of costs (repair): // Upfront: repairCost (at t=0) // PV of annual operating costs over horizon // Less PV of salvage value at end of horizon var pvOpOld = equPV(annualOpOld, r, horizon); var pvSalvageOld = equPVSingle(salvageOld, r, horizon); var totalRepair = repairCost + pvOpOld - pvSalvageOld;

// ── REPLACE OPTION ───────────────────────────────────────────── // Annual operating cost (new) = maintenance + energy + downtime loss var annualOpNew = maintNew + energyNew + (downtimeNew * downtimeCost);

// NPV of costs (replace): // Upfront: purchasePrice + installCost - incentive (at t=0) // PV of annual operating costs over horizon // Less PV of salvage value at end of horizon var upfrontNew = purchasePrice + installCost - incentive; var pvOpNew = equPV(annualOpNew, r, horizon); var pvSalvageNew = equPVSingle(salvageNew, r, horizon); var totalReplace = upfrontNew + pvOpNew - pvSalvageNew;

// ── DERIVED METRICS ──────────────────────────────────────────── var annualSavings = annualOpOld - annualOpNew; // annual operating savings from replacing var netUpfront = upfrontNew - repairCost; // extra upfront cost to replace vs repair

// Simple payback (undiscounted): extra upfront cost / annual operating savings var paybackYears = (annualSavings > 0) ? (netUpfront / annualSavings) : Infinity;

// Equivalent Annual Cost (EAC) = NPV_total * r / [1 - (1+r)^-n] (or NPV/n if r=0) var eacFactor = (r === 0) ? (1 / horizon) : (r / (1 - Math.pow(1 + r, -horizon))); var eacRepair = totalRepair * eacFactor; var eacReplace = totalReplace * eacFactor;

// ── BUILD TABLE ──────────────────────────────────────────────── var rows = [ ["Upfront / Immediate Cost", equFmt(repairCost), equFmt(upfrontNew)], ["PV of Annual Operating Costs", equFmt(pvOpOld), equFmt(pvOpNew)], ["Less: PV of Salvage Value", "(" + equFmt(pvSalvageOld) + ")", "(" + equFmt(pvSalvageNew) + ")"], ["Total NPV of Costs","" + equFmt(totalRepair) + "", "" + equFmt(totalReplace) + ""], ["Equivalent Annual Cost (EAC)", equFmt(eacRepair), equFmt(eacReplace)], ["Annual Operating Cost (nominal)", equFmt(annualOpOld), equFmt(annualOpNew)], ["Annual Energy Cost", equFmt(energyOld), equFmt(energyNew)], ["Annual Downtime Loss", equFmt(downtimeOld * downtimeCost), equFmt(downtimeNew * downtimeCost)], ];

var tbody = document.getElementById("equ-tbody"); tbody.innerHTML = ""; rows.forEach(function(row, i) { var tr = document.createElement("tr"); tr.style.background = (i % 2 === 0) ? "#f9f9f9" : "#fff"; row.forEach(function(cell, j) { var td = document.createElement("td"); td.innerHTML = cell; td.style.padding = "7px 12px"; td.style.textAlign = (j === 0) ? "left" : "right"; tr.appendChild(td); }); tbody.appendChild(tr); });

// ── VERDICT ─────────────────────────────────────────────────── var verdictEl = document.getElementById("equ-verdict"); var saving = Math.abs(totalRepair - totalReplace); if (totalReplace Replace the equipment. Replacing saves " + equFmt(saving) + " in NPV terms over " + horizon + " year(s)."; } else if (totalRepair Repair the equipment. Repairing saves " + equFmt(saving) + " in NPV terms over " + horizon + " year(s)."; } else { verdictEl.style.background = "#eaf2ff"; verdictEl.style.color = "#1a5276"; verdictEl.innerHTML = "⚖️ Both options are cost-equivalent over the analysis horizon."; }

// ── PAYBACK NOTE ────────────────────────────────────────────── var paybackEl = document.getElementById("equ-payback"); if (netUpfront

#### Formulas Used

Annual Operating Cost = Annual Maintenance + Annual Energy Cost + (Downtime Days × Revenue Lost per Day)

Present Value of Annuity (operating costs over n years at discount rate r): PV = C × [1 − (1 + r)−n] / r    (if r = 0: PV = C × n)

PV of Single Amount (salvage value at end of horizon): PV = FV / (1 + r)n

Total NPV of Costs – Repair = Repair Cost + PV(Annual Op Costold) − PV(Salvageold)

Total NPV of Costs – Replace = (Purchase Price + Installation − Incentives) + PV(Annual Op Costnew) − PV(Salvagenew)

Equivalent Annual Cost (EAC) = NPV × r / [1 − (1 + r)−n] Allows fair comparison of options with different cost structures on a per-year basis.

Simple Payback Period = (Upfrontreplace − Upfrontrepair) / (Annual Op Costold − Annual Op Costnew)

#### Assumptions & References

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References

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