Most food truck owners think expensive equipment automatically means better profits - that's completely wrong. Many spend thousands on shiny new gear without calculating if it'll actually pay back. The smart approach? Calculate your return on investment before you buy anything.
Why calculate payback period?
Every euro you invest in equipment must pay for itself through higher revenue or lower costs. Without calculation, you're buying on gut feeling, and that often goes wrong.
? Example:
You're considering a new combi-oven for €4,500. This saves you:
- Energy costs: €150/month
- Time: 2 hours/day × €15/hour = €900/month
- Less food waste: €100/month
Total savings: €1,150/month
The payback period formula
The basic formula is simple:
Payback period = Investment amount / Monthly savings
Monthly savings consist of:
- Lower costs: energy, maintenance, waste
- Time savings: faster work = more orders
- Extra revenue: new products you can make
Include hidden costs
Watch out: the purchase price isn't everything. Also factor in:
- Installation and connection
- Training for yourself/staff
- Higher insurance
- Extra maintenance per year
⚠️ Watch out:
Add up all costs, not just the purchase price. Installation can cost an extra 10-20%.
Estimate savings realistically
The hardest step: how much will you actually save? I've seen food truck owners overestimate savings by 40% - a mistake that costs the average restaurant EUR 200-400 per month in poor equipment decisions.
Calculate energy savings
Check your current energy bill and compare the consumption of old vs. new equipment.
? Example energy savings:
Old deep fryer: 6 kW × 8 hours × €0.40 = €19.20/day
New deep fryer: 4 kW × 8 hours × €0.40 = €12.80/day
Savings: €6.40/day × 25 days = €160/month
Convert time savings to money
Faster equipment = more time for customers = more revenue.
- How much time do you save per day?
- What's your hourly rate worth? (minimum €15/hour)
- Can you use that time for extra orders?
Practical calculation
Grab a calculator and fill in:
? Calculation example new grill:
Investment:
- Grill: €2,800
- Installation: €400
- Training: €200
Total: €3,400
Monthly savings:
- Energy: €80
- Faster work: €300
- Less waste: €50
Total: €430/month
Payback period: €3,400 / €430 = 7.9 months
Is it a good investment?
Rule of thumb for food trucks:
- Under 12 months: Excellent investment
- 12-24 months: Good investment
- 24-36 months: Questionable, depends on situation
- Over 36 months: Usually not profitable
⚠️ Watch out:
Food truck equipment breaks faster due to transport. Therefore calculate with a shorter payback period than a regular restaurant.
Include financing
If you borrow for the investment, add the interest to the costs.
Adjusted formula:
Payback period = (Investment amount + Total interest) / Monthly savings
Digital tools
Tools like KitchenNmbrs let you track your food costs and margins, so you can see exactly how much a new investment saves you in food cost and time.
Related articles
How do you calculate payback period? (step by step)
Calculate total investment
Add up: purchase price + installation + training + extra insurance. Don't forget hidden costs like connection or modifications to your truck.
Estimate monthly savings
Calculate: energy savings + time savings + less waste. Be realistic, not optimistic. Check your current energy bill for exact figures.
Divide investment by savings
Use the formula: Investment amount / Monthly savings = Number of months payback period. Under 12 months is excellent for food trucks.
✨ Pro tip
Always test your ROI calculations using your slowest 3-month period from last year, not peak season numbers. Equipment that pays back in 18 months during winter will crush it during summer festivals.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
How long can the payback period be for food truck equipment?
Should I include interest if I borrow for equipment?
How do I calculate time savings in euros?
What if the savings fall short?
Should I include maintenance in the calculation?
Do I need to factor in equipment depreciation for tax purposes?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
More in this category
Related questions
Explore more topics
Food cost tools made for food trucks
Small menu, big impact on your margin. KitchenNmbrs is light, fast and mobile — perfect for food truck entrepreneurs who need to count every cent. Try it free for 14 days.
Start free trial →