Decision Calculators

Repair-or-Replace Decision Calculator

Repair-or-Replace Decision Calculator takes the repair quote, life after repair, replacement price, trade-in value, each option's annual running cost and salvage, and your own discount rate and returns the equivalent annual cost of repairing versus replacing each asset, the gap between them, the repair price at which the answer flips, and a verdict. Each option is reduced to an Equivalent Annual Cost: (capital − discounted salvage) × the capital recovery factor for that option's life, plus its annual running cost. The capital recovery factor is d ÷ (1 − (1+d)^−L) at your own discount rate d, and 1/L when you set d to zero. Comparing annualised costs is the only way two options with different lives can be compared at all. Break-Even Repair Cost solves the same equation backwards for the repair price that would make the two equal. Nothing is pre-filled with an outside figure — no assumed discount rate, no assumed equipment life, no depreciation schedule you did not enter. Every value on every sheet is one you entered or one computed from what you entered, against the As-of date you set on 1. Setup, never today's date.