A new deep fryer costs €3,000, but pays for itself through more efficient preparation and lower energy costs. Many food truck owners have this feeling, but don't know exactly when an investment pays back. In this article you'll learn step-by-step how to calculate whether new equipment is profitable.
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?
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
When 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
With an app like KitchenNmbrs you can track your food costs and margins, so you can see exactly how much a new investment saves you in food cost and time.
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 calculate the payback period based on your worst month, not your best. This prevents disappointments and helps you make safe investment decisions.
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?
Maximum 24 months for food trucks. Due to transport and intensive use, equipment breaks down faster than in regular restaurants.
Should I include interest if I borrow for equipment?
Yes, add the total interest to the investment amount. At 5% interest over 3 years you pay €675 extra on a €4,500 investment.
How do I calculate time savings in euros?
Multiply saved hours per day × your hourly rate × working days per month. Calculate at least €15/hour for your own time.
What if the savings fall short?
Always calculate with 20% less savings than expected. If it's still profitable then, it's a safe investment.
Should I include maintenance in the calculation?
Yes, calculate 3-5% of the purchase price per year in maintenance costs. This reduces your monthly savings.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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.
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 →