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Branch Payback Calculator

How long a new site takes to return its investment, with the ramp-up period included rather than ignored.

Your numbers

Fit-out, equipment, deposits, pre-opening costs and initial stock.

Months before the site reaches steady state. Contribution is assumed to average half of steady state during the ramp.

Results

Monthly profit at steady state
80,000
Monthly contribution at steady state
220,000
Cash consumed during ramp-up
180,000
Payback including ramp-up (months)
27.0

Results update as you type. Nothing you enter is sent to us.

To size an expansion decision with the ramp-up period counted.

Most payback estimates assume the new site reaches its steady state immediately. It does not, and the months before it does are funded from somewhere.

Enter the investment, the expected monthly revenue at steady state, the variable cost percentage, the monthly fixed costs and the ramp-up period. The calculator returns monthly contribution, monthly profit at steady state and payback in months including the ramp.

How to read this

The ramp is modelled simply, as contribution averaging half of steady state across the ramp months. It is a planning approximation, not a forecast — the useful test is what happens to payback when the ramp takes twice as long as assumed.