ROI Tools

These ROI tools are designed to help dealers and municipalities evaluate the operational 

and financial benefits of implementing liquid anti-icing and automated brine production 

systems. As a guideline we have developed for you to use for your own evaluation into cost savings.

Purpose

Estimate labor savings from reduced storm response time and improved operational 

efficiency.

Inputs

• Number of storm events per year

• Average labor hours per event

• Average hourly labor rate

• Estimated labor reduction percentage

Formula

Annual Labor Savings = (Storm Events × Hours Per Event × Labor Rate) × Reduction %

Example

• 25 storm events annually

• 40 labor hours per event

• $38/hour labor cost

• 15% reduction

Calculation: 25 × 40 × $38 = $38,000 annual labor cost $38,000 × 15% = $5,700 annual 

labor savings

Purpose

Estimate labor savings from reduced storm response time and improved operational 

efficiency.

Inputs

• Number of storm events per year

• Average labor hours per event

• Average hourly labor rate

• Estimated labor reduction percentage

Formula

Annual Labor Savings = (Storm Events × Hours Per Event × Labor Rate) × Reduction %

Example

• 25 storm events annually

• 40 labor hours per event

• $38/hour labor cost

• 15% reduction

Calculation: 25 × 40 × $38 = $38,000 annual labor cost $38,000 × 15% = $5,700 annual 

labor savings

Purpose

Estimate savings associated with reduced equipment wear, spreader maintenance, and 

material handling.

Inputs

• Annual spreader maintenance cost

• Annual loader/material handling cost

• Estimated reduction percentage

Formula

Annual Equipment Savings = (Total Annual Equipment Cost) × Reduction %

Example

• Annual maintenance/material handling cost: $20,000

• Estimated reduction: 20%

Calculation: $20,000 × 20% = $4,000 annual savings

Purpose

Combine operational savings into one annual financial summary.

Formula

Total Annual Savings = Salt Savings + Labor Savings + Equipment Savings

Example

• Salt Savings: $42,500

• Labor Savings: $5,700

• Equipment Savings: $4,000

Calculation: $52,200 Total Annual Savings

Purpose

Estimate system payback period.

Inputs

• Total project cost

• Total annual savings

Formula

Payback Period = Project Cost ÷ Annual Savings

Example

• Project Cost: $75,000

• Annual Savings: $52,200

Calculation: $75,000 ÷ $52,200 = 1.44 years

Estimated Payback: Approximately 17 months

Purpose

Help municipalities evaluate operational efficiency improvements.

Inputs

• Total annual winter maintenance cost

• Annual lane miles maintained

• Estimated reduction percentage

Formula

Cost Per Lane Mile = Annual Winter Maintenance Cost ÷ Lane Miles

Projected Savings = Cost Per Lane Mile × Reduction %

Example

• Annual winter operations budget: $500,000

• 250 lane miles

• Estimated reduction: 15%

Calculation: $500,000 ÷ 250 = $2,000 per lane mile 15% reduction = $300 savings per lane 

mile

Purpose

Compare in-house brine production versus purchasing pre-made liquids.

Inputs

• Purchased liquid cost per gallon

• In-house brine production cost per gallon

• Annual gallons used

Formula

Annual Savings = (Purchased Cost – Production Cost) × Annual Gallons

Example

• Purchased liquid cost: $0.95/gallon

• In-house production cost: $0.28/gallon

• Annual usage: 100,000 gallons

Calculation: ($0.95 – $0.28) × 100,000 = $67,000 annual savings

Purpose

Estimate reduction in salt entering the environment.

Inputs

• Annual salt usage

• Estimated reduction percentage

Formula

Salt Reduction = Annual Salt Usage × Reduction %

Example

• Annual salt usage: 2,000 tons

• Estimated reduction: 25%

Calculation: 500 tons of salt reduction annually