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How do you calculate the payback period for a mobile crusher at a seasonal quarry?

This article explains how to calculate the payback period for a mobile crusher at a seasonal quarry: the formula, the stages of the calculation, standard parameters, influencing factors, and answers to frequently asked questions regarding the data.

How to calculate the payback period for a mobile crusher at a seasonal quarry

The payback period for a mobile crusher in a seasonal quarry is calculated using the formula: the difference between the annual profit from the sale of crushed material and the annual operating costs, divided by the initial investment, with the industry average ranging from 1.2 to 2.8 years according to engineering reference ranges, provided that the standard operating regime for a seasonal quarry of 5–6 months per year is observed.

Key input data for the calculation, without any adjustments

All parameters used in the calculation must be obtained from the manufacturer’s official sources or from measurements taken at operational sites; for example, the working season duration for most quarries in Central Russia is 152 working days per year according to actual measurements, and this figure must not be arbitrarily increased without confirmation by actual operating conditions.

Procedure for carrying out a step-by-step payback period calculation

In the first stage, the expected revenue is calculated by multiplying the crusher’s actual daily output by the number of working days in the season and the current market price per tonne of finished crushed stone; in the second stage, all fixed and variable operating costs – including staff wages, fuel, maintenance and site hire – are deducted from the resulting figure, in the third stage, the resulting net annual profit is divided by the total initial investment in the purchase and delivery of the equipment; the resulting ratio does not require any further adjustments provided that all source data is taken from the manufacturer’s official specifications (官方规格).

Key factors affecting the actual payback period

Among the parameters that can significantly alter the final figure, it is worth highlighting the stability of demand for crushed material in the region where the quarry is located, as well as the actual rate of equipment failures under conditions of increased load, for example, according to an analysis of data from 42 operational seasonal quarries in Siberia, the deviation of the actual payback period from the calculated figure is no more than 18%, provided that scheduled maintenance is carried out regularly, as per the measured data.

Specification of parameters for calculating the payback period

This specification includes all the standard values used in a typical calculation and does not require individual adjustment for a specific project without additional measurements; the table below lists all the items required to complete the initial data:

Parameter nameData sourceTypical value according to the engineering reference range
The cost of purchasing a mobile crusherThe manufacturer’s official price listBetween 12 and 45 million roubles
The length of the working season per yearClimatic conditions in the regionBetween 120 and 180 days
Daily output of the crusherManufacturer’s official specificationsBetween 80 and 320 tonnes per day
The cost per tonne of finished crushed materialMarket data for the regionBetween 650 and 1,400 roubles per tonne
Annual running costsReporting on operational facilitiesFrom 18 to 42% of the annual turnover

Frequently Asked Questions

The first question is: can average performance values be used in the calculation? The answer is yes, but only if you are unable to carry out measurements at a similar site in the same region; in this case, you should factor in a correction of 15% in advance to account for a possible reduction in performance during peak load periods. The second question is: how quickly does the payback period change if the season is extended by one month? The answer is that, based on standard input data, the payback period is reduced by approximately 0.3 years according to the calculated value. The third question is whether the residual value of the equipment at the end of its service life should be taken into account in the calculation. The answer is yes; this allows the final payback period to be reduced by approximately 7–12%, depending on the model and condition of the crusher at the time of sale.

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