Return on Investment and Simple Payback with cove.tool

May 7, 2019 - 1 minute read

Simple Payback: Cove.tool utilizes a simple payback methodology for the return on investment calculation. Energy efficient architecture requires the Simple Payback calculation of the various energy conservation measures to determine the true value. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a break-even point. The desirability of an investment is directly related to its payback period. Shorter paybacks mean more attractive investments.

Return on Investment: This refers to the significant potential savings that would come to a design solution in the form of reduced utility bills. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the impact of Energy Conservation Measures. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio. cove.tool can do this analysis in it’s automated app within a few minutes.

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