Step 5: Proposed Actions

Good ideas can provide significant benefits. Where appropriate, take action.

A simple Method for Calculating payback period.

Should you wish to install equipment to help you save water e.g for re-using, then the equipment will cost you money. Will the savings in water charges cover the cost of the equipment?

Payback period (years) = Cost of installation / Annual estimated savings


If the cost of equipment (e.g. tank and water pump) installed to collect used water from the plate cooler in the dairy for recycling, is estimated at €2,500 and the annual estimated savings in water charges is €1,500.

Payback Period (Years) = €2,500 / €1,500 = 1.7 years

Hence, in this example it will take 1.7 years ( 19 months) to cover the project costs.

The calculation above is for example only and you must substitute your own figures. It will be necessary to include interest charges and running costs.