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Use the following formula to figure your Return of Investment (ROI) for A/C Equipment

Revenues
Number of times equipment will be used per month
Dollars charged per use $

Expenses
Number of labor hours
The technician's wage per hour $
Cost of supplies consumed $
Other costs $
Monthly cost of equipment (Lease cost or purchase price divided by 36) * $

Gross monthly profit
Monthly net profit

* Based upon a 3 year period

Use the following formula to figure your Return of Investment (ROI) for Four Wheel Alignment Equipment

Number of four wheel alignment jobs per month:
Amount of revenue from a four wheel alignment job $
Number of two wheel alignment jobs per month
Amount of revenue from a two wheel alignment job $
Average amount of gross parts profit per job $
Monthly lease cost or loan payment for equipment $
Cost of the Equipment $

Monthly gross profit from equipment purchase
Annual gross profit from equipment
Return on equipment investment ratio:*



*The higher the number, the more profitable the equipment. An answer of 1 means that you'll get a 100% return on the equipment over five years. A 100% return over the life of the equipment is the minimum return you should expect on your investment. A return 2 (200%) to 5 (500%) should be your target. An answer less then 1 (e.g., .50) means that you need to sell more jobs or increase the price of the service in order to generate an adequate return on the equipment investment.