How to Calculate the True ROI of a New Multifunction Copier

A new multifunction copier is a significant investment for any business. To make a smart decision, savvy leaders need to look beyond the initial price tag and justify the purchase with a clear, demonstrable Return on Investment (ROI). But how do you calculate the ROI of a machine that seems like a standard cost center?

The secret is to recognize that a modern multifunction printer (MFP) is not just a utility; it’s a productivity engine. Its true value is found in cost savings, time reclamation, and risk reduction.

This practical guide provides a simple framework to help you calculate the true ROI and make a confident, data-driven decision.

Part 1: The "I" – Calculating Your Total Investment

First, you need to understand the "I" in ROI: your total investment, also known as the Total Cost of Ownership (TCO). This is more than just the sticker price.

Total Investment = (Cost of Device) + (Cost of Supplies) + (Cost of Service)

Cost of the Device: This is either the full purchase price or the total of all lease payments over the contract term.

Cost of Supplies: This includes all toner, ink, and other key consumables over the life of the machine.

Cost of Service: This includes any service contracts, maintenance agreements, or the average cost of anticipated one-off repairs.

A Managed Print Service agreement simplifies this calculation by bundling all three into one predictable number.

Part 2: The "R" – Quantifying Your Return

This is where the true value becomes clear. Your "Return" is the total financial gain you get from the new technology. This comes from three key areas.

1. Hard Cost Savings

These are the easiest to measure. Compare the costs of your old way of doing things to the new way.

Reduced Cost-per-Page: A new, efficient machine often has a lower cost for toner and supplies than older models.

Consolidation: A single, reliable MFP can often replace multiple, inefficient desktop inkjet printers, which have an incredibly high cost-per-page for ink.

2. Productivity Gains

This is the largest contributor to your ROI. The goal is to assign a dollar value to the time your team saves.

The Formula: (Hours Saved per Week) x (Avg. Employee Hourly Cost) x (52 Weeks)

Where Time is Saved:

Faster Scanning: A modern scanner with a duplex single-pass feeder can cut scanning time in half.

Automated Workflows: Automating a manual process like invoice approval can save dozens of hours per month.

Reduced Downtime: A new, reliable machine with proactive service eliminates the time your team wastes troubleshooting a broken device.

3. Risk Reduction

This is the value of preventing a costly negative event. For office technology, the biggest risk is a data breach from an unsecured device.

The Question: What is the potential cost of a single data breach or compliance violation (e.g., HIPAA)? This can include fines, legal fees, and reputational damage, often totaling tens of thousands of dollars or more.

The Value: While you can’t pencil this in as a guaranteed return, the advanced security features of a new machine (encryption, user authentication, firmware updates) provide a massive, protective financial value that should be a key factor in your decision.

Part 3: Putting It All Together (ROI)

Once you have your numbers, the ROI calculation is simple:

ROI = [ (Total Financial Gain) – (Total Investment) ] / (Total Investment)

The result is a percentage that shows your net return.

Example:

Let's say your total investment over three years is $10,000.

You calculate hard cost savings of $1,500 and productivity gains valued at $12,000, for a total gain of $13,500.

[ ($13,500) – ($10,000) ] / ($10,000) = 0.35

Your ROI is 35%. This shows that the investment more than paid for itself and delivered significant additional value.

By looking at an equipment upgrade through this lens, you move from a cost-based decision to a value-based one. Contact us for a complimentary assessment, and we can help you calculate the potential ROI for your specific business.