> How do I determine ROI?
How do I determine ROI?
Initial extra cost ÷ savings per month/year = x. X should be less than or equal to the number of years the item is expected to last. Example: A heat pump water heater costs $600.00 more to buy. It can save you $20.00 a month and the heat pump water heater is expected to last 13 years. The math is $600.00 ÷ $20.00 = 30 months you will earn the extra money back and you still have (120 months x $20.00 a month = $2400 dollars saving for investing the extra $600.00 for the heat pump water heater. In addition, if it is installed inside the building envelope, you can take advantage of dehumidification and one half ton of free air conditioning. In this case it seems like a no brainer. And that is TRUE!