KEVOS® WORKOS · Money
Investment Hurdle Check
Does the investment clear a simple commercial hurdle?
Tests an investment against the payback and return thresholds your organisation sets.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Initial investment | $ | Total installed cost from quotations |
| Annual net benefit | $ | Annual benefit minus ongoing costs |
| Maximum acceptable payback | years | Payback limit set by your capital approval policy |
| Minimum acceptable ROI | % | Minimum annual return set by your capital approval policy |
Method and formulas
- Payback = investment ÷ annual net benefit
- Simple annual ROI = annual net ÷ investment
- Passes only if payback ≤ limit and ROI ≥ hurdle
Limitations
- Simple (undiscounted) measures
- Thresholds are management choices
Typical uses
- Capital expenditure approval
- Quick screening of improvement ideas
Who it is for
- Managers preparing capital requests
- Approvers and finance
What you get
- PASSES HURDLES or BELOW HURDLE
- Payback and return against each threshold
Interpreting the result
- A FAIL on either hurdle means the case needs more benefit, less cost or an exception
- Use the ROI and NPV tool for a discounted view
WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.
