How do you know if it is worthwhile?
Before you start calculating an investment, our recommendation is that you first make sure that what is in your heating systems is working properly. Only then will you have a proper calculation to know if it is worthwhile!
There are different calculation methods and to get a quick overview between different options, the Pay-off method works. It is easy to use and understand, but it does not take into account the interest rate and the economic life of the investment.
So once you have an initial overview and want to calculate which option is the most profitable, you can use the annuity method, which takes into account interest and economic life.
As you can see, the result is different depending on the method and interest rate used. So it's important to take into account interest rates and economic lifetime for larger investments.
The pay-off method
Investment 100 000:- / 20 years = 5 000:- / year
Annuity method
Investment 100 000:- * 0,0672
Interest rate 3 % and life 20 years
6 720:- / year
Investment 100 000:- * 0,0802
Interest rate 5 % and life 20 years
8 020:- / year
Of course, investing in a heating system is not just about making a financial return. Above all, it has to work and be reliable. Isn't that right?