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Preventive Maintenance ROI Calculator

PM cuts unplanned breakdowns and extends equipment life.

$
$
$

Total ROI multiple

1.76

Reactive repair savings

$54,000

Life extension savings

$25,000

How the math works

Reactive savings = cost × incidents prevented. Life extension savings prorated over 15-yr base life.

12 × $4.5k = $54k reactive + $25k life extension = $79k / $45k PM = 1.76× ROI.

How to Use

  1. Enter annual PM cost.
  2. Enter avg reactive repair cost per incident.
  3. Enter incidents prevented per year.
  4. Enter equipment life extension years.
  5. Enter replacement cost.
  6. Read total ROI.

Frequently Asked Questions

Savings ratio?

Industry rule: every $1 PM saves $4-8 in reactive repair and downtime. PM catches issues early (failing bearing, dirty coils) before catastrophic failure. Also extends equipment life 30-50% vs run-to-fail.

Coverage priorities?

HVAC PM: 2x/yr (filter, coil, refrigerant). Roof: 2x/yr inspection. Elevator: monthly (code requirement). Fire safety: quarterly. Plumbing: annual. Emergency generator: monthly test + annual service. Document all with vendor reports.

Tracking?

CMMS software (Maximo, UpKeep, Facilities). Work orders linked to equipment. Tracking completion rates target 95%+. Trend analysis: declining completion rate = deferred maintenance building. Institutional operators audit quarterly.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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