Payback calculator for upgrade vs MPG

[HO455]

I have found this is a handy thing to have. However I am not the tech guy that knows how to make it work here so you will have to build your own in Excel. Or maybe someone else will know how to make it work here.
Enter these into a new spread sheet. (See PDF copy of mine)



Row1 Cost of the conversion
Row2 Present MPG
Row3 Expected (New) MPG
Row4 Price of Gas (gallon)
Row5
Row6 Miles to break even

Then enter this formula in box D-6
=D3/(D6*(1/D4-1/D5))

Then you should be able to enter your total cost of say "installing a new 700r4".
Then enter your past MPG with what your new MPG should be.
Enter the cost of a gallon of gas and if everything is correct you will see how many miles it will take for you to break even on the change.

Good luck and have fun.

[huntznsam]

I created that years ago on my 52 Chevy Truck website (now defunct). Attached in a zip file, along with a simple car payback calculator, and a fancier one that allows for different fuels grades (regular, premium, etc).

If you don't drive a lot of miles, it is surprising how long (if ever) the payback period is.

Chuck

[HO455]

Well thank you! A friend forwarded it to me several years (and at least one laptop) ago and I have enjoyed using it since.

[franken]

A slight improvement would be to use column C as row headings, column D values under the headings, and fuel cost off to the side as a single value. Then you'll have one row per change and can save the file while keeping any number of changes over time. Just take the formula, paste it into the break even column and convert to the new layout.
I think the formula =D3/(D6*(1/D4-1/D5)) doesn't work with the layout in the pdf, since D6 is the result and D5 is empty, which makes for divide by zero...

[franken]

All I come up with with units that work is the following with the following in E2: =(A2/D2)*(C2-B2)
You can take the attachment, unzip it and open it in a spreadsheet. Then replace E2 (1846) with the formula above. I'm not saying it's correct, but it uses all 4 values.

Cost of the conversion,Present MPG,Expected MPG,Fuel cost,Break even
1000,12,18,3.25,1846

To end up with miles as a unit at the end, MPG and Dollars each have to cancel out in the formula, so we divide $cost by $per gallon, making the $ disappear.

[tdangle]

I will probably never be ahead, but sure is much nicer to keep up with traffic on these California freeways. And I'm sure I'll drive it more often.

[jjzepplin]

Fun Factor= priceless! Stunned looks on peoples faces= addicting. Paying no interest on a new car... Money ahead AND we are recycling!

[Coley]

If you really get into it, you will find a lot more ways to include other payback elements within this type of upgrade.
For instance does a '700R4' transmission add value to the vehicle?....i would say it does. So the value addition to the truck could be factored in in terms of payback.
Next up, does the reduced speed on the highway add to engine life?....probably yes, which means that you will be getting at least an extra year out of your motor if you anticipate lasting...10 years?...12 years? 15 years? or? Either way, there is financial/investment payback in that as well.

I enjoy the resulting conversation when the general public or even a few friends ask me about 'gas mileage' while snickering...lol.
I ask them what their yearly depreciation is on their late model vehicle?....say....$10 a day?...maybe more?....plus they still have to put gas in their vehicle...and they pay more in insurance because its new.

I tell them I have to put gas in mine too....more often than them for sure, but my truck goes up approx. $2-3 a day in value...vs. down $10 a day...which easily allows me to offset my gas costs...lol.

All good
Coley

[68Gold/white]

Way too much think'n going on here!!!!

[rpmerf]

Bust out this calculator next time someone says they are buying a new vehicle because the current one uses too much gas. People love spending thousands to save hundreds.

[Coley]

Its a very interesting subject...essentially 'The true cost of vehicle ownership'.

I have read some really interesting articles on it over the last 20 years and the true and real 'out of pocket' cost/dollar numbers associated with buying and owning a new vehicle would scare the living crap out of you.

Basically...it starts at about $9500 a year 'after tax' money for a new vehicle. So depending on how much you make this would account for probably $12,000/yr off your salary if you factor in taxes on your salary/wages.
This $9500/yr figure is based on amortizing a variety of elements of ownership over several probable years of average ownership...including financing, insurance, depreciation, warranty costs, fuel, miscellaneous, etc, etc.
(note with respect to the $9500 /yr figure...some sources show a little lower but most actually show higher than this....and its going up)

So buying a new car is a lot like saying you just accepted a $12,000 a year wage decrease....essentially.
People will argue this...particularly those that like new things, but the data and facts are what they are.

The marketing is set up to divert attention away from this.

Interesting stuff....but it does to show that buying, owning and running these older classic vehicles is a lot more financially viable and sustainable than they look from a distance.

All good
Coley

[68Gold/white]

Originally Posted by rpmerf

Bust out this calculator next time someone says they are buying a new vehicle because the current one uses too much gas. People love spending thousands to save hundreds.

A person I know does that stuff....last time the country got thrown into higher gas prices, he went out and bought his wife a "new" economy car, probably a $25,000.00 car, so she wouldn't have to drive her gas hog Tahoe...LOL

[1971Stepside]

If you gotta ask...you know how it goes.

I bought a Duramax using a calculator like this...then diesel jumped to waaaay higher than unleaded and never went back below it. Loved the truck, but it never paid for the difference in price from the gas to diesel motor.

[huntznsam]

Ignore this if you aren't a math geek.

Franken,
Units work as written - I think you missed the inverse. 1 over m/g=g/m so the units work out as $ over ($/g*g/m). The $ cancel, the g cancel, and you are left with miles. Been a million years since I did that in school.

We start with the basic formula and work from there. Miles per year/MPG=gallons per year. GPY*dollars per gallon=gas cost per year.

You can check by using B11*B8 and B12*B8 in my sheet to get cost of gas before and after. The difference is the cost of conversion, B2.
Huntz

[Boog]

How much is personal satisfaction and smiles worth?

[jjzepplin]

That's what I'm talking about! My brother cannot possibly have the same smile on his face when he starts up his 2014 Silverado as I do when I start up the ol 70. It's a nice truck but dang did he pay 10 times what I did easy. I would rather buy rental property! At the end of its life he will pull the engine and put it in a classic IF he can find one. I will already have a bunch and several houses!

[LostMy65]

I've been wanting something like this.
Thanks

[LostMy65]

I've been using this:
http://mpghead.com

[franken]

Apparently you missed the obvious flaws pointed out in the original equation that were pointed out. You can't divide by a value that doesn't exist, and you can't use the cell that contains the formula in the formula. I was talking about the units in my version, not the original. Also, doing an inversion in the equation simply places the values in the numerator, so why not put them there in the first place.

Anyone can use both formulas and see what happens w/ simple numbers...

Originally Posted by huntznsam

Ignore this if you aren't a math geek.

Franken,
Units work as written - I think you missed the inverse. 1 over m/g=g/m so the units work out as $ over ($/g*g/m). The $ cancel, the g cancel, and you are left with miles. Been a million years since I did that in school.

We start with the basic formula and work from there. Miles per year/MPG=gallons per year. GPY*dollars per gallon=gas cost per year.

You can check by using B11*B8 and B12*B8 in my sheet to get cost of gas before and after. The difference is the cost of conversion, B2.
Huntz

[huntznsam]

Franken,
Thank you! Now I understand. You are right - I glanced at the original post and recognized my work. I missed that it lost something in the translation as you say. Download my zip with the original, correct formula and it works. Dead on balls accurate!
Huntz

[cebra]

I am currently at ~$900 a month in gas on my cam'd 350 daily driver C10. 4.8LS motor and NV3500 will pay for itself in 22K miles or 8.8 months according to this caluculator. I used a very conservative estimate on my swap costs and mpg savings. Plus no more cold start issues and stopping at the gas station every other day. Bravo on the calculation, I love data.

[HO455]

First off I am sorry I did such a hash job of trying to post the calculator.
Second. Thank you to everybody who has jumped in to help correct it.
Even if you don't need to calculate your payoff down the line it may help convince other members of the family to release funding for the conversion.

[LostMy65]

If I drove my 65 as my daily driver, it would cost me $800 more a year over my 2010 CRV.
$800 / 12 = 60 per month. Where it seems to hurt is how often I have to go buy more gas. My 2010 Honda CRV cost $22,000 and is now worth $5000, and will continue to become worth less and less. That means I spent $17,000 / 8 years = $2125 a year - ($177 per month)
So, I might as well put $15,000 worth of upgrades in my truck - LS, Suspension, brakes, - and have something that won't depreciate.

[Already Gone]

Originally Posted by Coley

If you really get into it, you will find a lot more ways to include other payback elements within this type of upgrade.
For instance does a '700R4' transmission add value to the vehicle?....i would say it does. So the value addition to the truck could be factored in in terms of payback.
Next up, does the reduced speed on the highway add to engine life?....probably yes, which means that you will be getting at least an extra year out of your motor if you anticipate lasting...10 years?...12 years? 15 years? or? Either way, there is financial/investment payback in that as well.

I enjoy the resulting conversation when the general public or even a few friends ask me about 'gas mileage' while snickering...lol.
I ask them what their yearly depreciation is on their late model vehicle?....say....$10 a day?...maybe more?....plus they still have to put gas in their vehicle...and they pay more in insurance because its new.

I tell them I have to put gas in mine too....more often than them for sure, but my truck goes up approx. $2-3 a day in value...vs. down $10 a day...which easily allows me to offset my gas costs...lol.

All good
Coley

I picked up a 700R4 last Spring and will be installing it next Spring..