Calculating the Return on Investment (ROI) of maintenance is essential to objectively demonstrate the value that asset management adds to industrial operations. ROI allows you to quantify improvements in availability, efficiency, and reliability, transforming maintenance from a simple cost center into a true driver of results.
For a long time, maintenance was seen merely as an unavoidable expense. However, by adopting a strategic approach, it becomes clear that every resource invested in this area directly contributes to reducing unexpected failures, optimizing resources, and increasing productivity. Therefore, calculating maintenance ROI strengthens decision-making and highlights its positive impact on overall industrial performance.
In this article, we will explain how to calculate maintenance ROI, which indicators and metrics can be applied, the main costs involved, and present practices and technologies that help turn maintenance into a strategic pillar for industrial competitiveness.
The role of Predictive Maintenance in ROI
An industry that still relies on the run-to-failure (RTF) approach faces high costs and low efficiency. In these cases, the potential for financial and reliability gains through structured maintenance strategies is enormous.
The best approach is not to depend on a single type of maintenance but to adopt a hybrid strategy that combines corrective, preventive, and increasingly predictive maintenance. This model allows actions to be tailored to the characteristics of the plant and the criticality of assets.
Since maintenance costs represent a significant fraction of total production costs, any action that reduces unexpected failures and optimizes resources directly impacts ROI. In this scenario, predictive maintenance becomes the industry’s greatest ally, acting predictably, systematically, and data-driven to prevent unplanned downtime and extend asset lifespan.
Key costs impacted by Predictive Maintenance
- Maintenance labor: Less emergency work means teams can operate in a planned and strategic manner.
- Spare parts: Anticipating failures avoids unnecessary replacements, reduces MRO inventory, and mitigates costly emergency purchases.
- Asset downtime: Greater predictability translates into more productive hours and fewer losses on the production line.
By optimizing and forecasting operational expenses (OPEX) and providing technical insights to properly evaluate investments in new assets (CAPEX), predictive maintenance transforms the maintenance department into a generator of value and competitiveness — not just a cost center.
OPEX vs. CAPEX: Understanding the differences and their impact
When calculating maintenance ROI, it is crucial to distinguish between OPEX (Operational Expenditure) and CAPEX (Capital Expenditure). Both concepts directly influence how maintenance investments are perceived within the organization and how they contribute to value creation.
- CAPEX (Capital Expenditure) refers to capital expenditures for acquiring, improving, or expanding assets — such as purchasing new equipment, building a plant, or modernizing existing systems. These investments increase capacity or extend operational life.
- OPEX (Operational Expenditure), on the other hand, covers day-to-day operational expenses, such as equipment maintenance, labor costs, energy consumption, and spare parts. These recurring costs must be managed strategically, as they can represent a significant portion of the total production budget.
Understanding the balance between OPEX and CAPEX is essential for efficient investment allocation. A structured maintenance strategy supported by predictive practices reduces OPEX while providing technical justification for CAPEX when necessary.
How to calculate maintenance ROI
Calculating maintenance ROI requires converting costs and technical indicators into financial information that demonstrates the value added by maintenance. For this purpose, some metrics are essential, as they allow for correlating asset performance, operational efficiency, and economic impact:
RAV (Replacement Asset Value) vs. Maintenance Costs
Compare absolute maintenance expenses with the asset replacement cost. According to SMRP, top-performing companies keep this ratio below 3%.
Inventory and spare parts (MRO)
Include local, consigned, or vendor-managed stocks. Best-in-class industries maintain this below 1.5% of RAV.
Maintenance cost per unit produced
This metric directly links maintenance to production. By dividing the total maintenance expenditure by the number of units produced, it becomes possible to understand the impact of maintenance on operating costs and identify efficiency bottlenecks. In this way, the lower the value, the greater the industrial competitiveness.
Energy consumption and efficiency
The cost of electricity should also be factored into the calculation of maintenance ROI. Structured maintenance programs — especially those that prioritize preventive and predictive practices — can improve energy efficiency by 5% to 10%. This happens because well-adjusted, balanced, and lubricated assets consume less energy and operate under optimal conditions.
For better understanding, see the comparative table below:
Practices that increase maintenance ROI
To consistently calculate maintenance ROI, it’s not enough to track costs and indicators. It’s essential to implement practices that boost team productivity, reduce waste, and enhance operational reliability. Among the most relevant are:
Boosting maintenance productivity
A significant portion of productivity losses in maintenance is linked to factors such as waiting for parts, lack of instructions, machine unavailability, or excessive emergencies.
The solution lies in adopting a structured management approach with documented processes, trained teams, and the support of a Computerized Maintenance Management System (CMMS). Among the proven practices that increase productivity are:
- Planning work in advance;
- Scheduling tasks and clearly defining responsibilities;
- Ensuring local availability of parts and tools;
- Replacing emergency maintenance with preventive and predictive activities whenever possible.
With this alignment, teams shift from reactive to organized operations, reducing time waste and increasing the return on maintenance actions.
Reducing spare parts inventory
The size and variety of spare parts inventory are directly related to the quality of maintenance management. Preventive strategies allow some planning, but predictive maintenance truly optimizes inventory. By anticipating wear and failure risks, predictive maintenance enables timely purchasing, avoiding both excess stock and critical shortages during downtime.
Additionally, this practice extends component lifespan and reduces unplanned stoppages, ensuring greater financial return by postponing capital expenditures.
Lower energy consumption and scrap reduction
Another direct impact on maintenance ROI is energy efficiency and production quality. By combining corrective, preventive, and predictive techniques, industries can reduce energy costs by up to 10%, covering mechanical, electrical, steam, hydraulic, and pneumatic systems.
Moreover, a well-structured maintenance program ensures machines operate under required conditions, reducing excessive vibration, friction, and unnecessary heating. As a result, energy consumption decreases, raw material waste is minimized, and scrap rates drop.
These gains reinforce competitiveness and increase the return on every maintenance investment.
How can maintenance managers change perceptions?
One of the greatest challenges is overcoming the view that maintenance is merely a cost center, a support department, or even a necessary evil in industry. In this context, the maintenance manager plays a crucial role by demonstrating, through structured processes and tangible indicators, that maintenance generates direct value for the organization.
Strategic gains that strengthen maintenance
By translating investments into practical results, maintenance managers can change the perception of executives and teams. Key benefits include:
- Quality and Safety: A robust maintenance program reduces failures that compromise employee safety and improves product quality, resulting in less rework, higher production efficiency, and competitive advantage.
- Asset Availability: Increasing MTBF and reducing MTTR ensures production follows its schedule without unexpected interruptions. Reliable assets mean greater production capacity, fewer frustrations, and higher team morale.
- Financial Results: Optimizing maintenance reduces spare parts costs, boosts equipment productivity, and frees labor for more strategic activities. This efficiency accelerates cash flow and contributes to higher profits.
Strategic indicators for calculating maintenance ROI
To turn these gains into solid arguments, it is essential to rely on strategic KPIs that measure maintenance ROI. Among the most relevant are:
- % of maintenance expenses relative to RAV (Replacement Asset Value);
- % of spare parts and MRO inventory relative to RAV;
- Maintenance cost per unit produced;
- Annual energy consumption cost of the plant.
These metrics, typically assessed annually, quantify maintenance’s impact on business results. When applied correctly, they help managers justify investments, allocate resources, and position maintenance as a strategic value generator.
Calculating maintenance ROI as a value strategy
Calculating maintenance ROI is essential to transform the perception of the department within the industry. By objectively measuring costs, availability, and productivity, maintenance becomes recognized as a strategic value generator capable of directly impacting profitability and competitiveness.
Applying metrics such as MTBF, MTTR, maintenance cost per unit produced, and expenses relative to RAV allows managers to demonstrate, with data, the return on investments in predictive maintenance, structured planning, and reliability practices. More than numbers, these indicators show that keeping assets operating efficiently means reducing risks, optimizing resources, and ensuring production continuity.
How Dynamox supports your industry in achieving ROI
In practice, achieving these results depends on technologies that provide real-time visibility and reliable analysis. This is where Dynamox stands out:
- IoT Sensors (DynaLogger and DynaPortable): Continuously monitor critical variables such as vibration and temperature, anticipating failures and avoiding unexpected costs.
- DynaGateway: Automates data collection, eliminating manual inspections and ensuring traceability.
- Dynamox Platform: Centralizes information, generates alerts and reports, and integrates strategic KPIs into maintenance planning.
- DynaDetect: AI-powered diagnostics and predictive analysis for fast, accurate decision-making.
By combining continuous monitoring, digital integration, and predictive analytics, Dynamox helps your industry calculate and maximize maintenance ROI, consolidating reliability as a competitive advantage.
Talk to our specialists and discover how to turn maintenance data into real returns for your business.
Case study: Ultragaz
Ultragaz has advanced in adopting predictive maintenance, and one of its first results already demonstrated the strategy’s impact: early detection of angular misalignment in an LPG pump, where corrective maintenance could have cost USD 6.600,00.
Through continuous vibration monitoring with Dynamox technology, the team identified the issue before it compromised plant availability.
In this article, you’ll see how the diagnosis was made, which signals raised attention, and the real gains achieved by the company.
Frequently asked questions about calculating maintenance ROI – FAQ
What is considered a good maintenance ROI?
There is no single fixed number that applies to all sectors. However, international benchmarks, such as those from the Society for Maintenance and Reliability Professionals (SMRP), indicate that high-performing companies keep maintenance costs below 3% of the Replacement Asset Value (RAV).
Additionally, a positive ROI should reflect not only direct cost reductions but also indirect gains, such as increased asset availability, lower energy consumption, and reduced scrap rates.
How can an industry without historical data start calculating maintenance ROI?
The first step is to organize the collection of basic information: labor costs (internal and outsourced), spare parts expenses, and equipment downtime hours. These data can initially be recorded in simple spreadsheets, but ideally, a CMMS (Computerized Maintenance Management System) should be used to ensure standardization and traceability.
Over time, the company can evolve to more advanced metrics, such as MTBF, MTTR, and cost per unit produced, refining the ROI calculation.
What mistakes should be avoided when calculating maintenance ROI?
Common mistakes include:
- Considering only direct costs and ignoring indirect impacts, such as energy and product quality;
- Using non-standardized or incomplete data;
- Overlooking asset criticality, treating essential and secondary machines the same way;
- Failing to compare results over equivalent periods, which can distort trends.
Avoiding these errors ensures that ROI accurately reflects the operational reality of the industry.
Can ROI be used to compare different maintenance strategies?
Yes. ROI is a powerful tool for evaluating the financial impact of different strategies. By comparing corrective, preventive, and predictive maintenance, it is possible to measure which approach delivers the greatest value in terms of failure reduction, avoided costs, and increased availability. This enables managers to allocate resources to the strategy that offers the best cost-benefit balance for each asset type.
Does digital transformation influence maintenance ROI?
Com certeza. Tecnologias como sensores IoT, gateways e plataformas de análise aumentam a precisão dos dados e permitem antecipar falhas antes que causem paradas não programadas. Dessa forma, é possível reduzir custos emergenciais, melhorar indicadores e ampliar a confiabilidade dos ativos. Na prática, a transformação digital acelera a maturidade da manutenção e potencializa o retorno sobre os investimentos feitos na gestão de ativos.
Ready to transform your maintenance strategy? Discover how predictive technologies can maximize ROI and drive industrial performance — contact us today!