How ROI Cost Basis Is Determined
When calculating ROI, Renterra looks at item cost fields in this priority order:
OEC Price (Original Equipment Cost) This would be the initial cost to acquire a new piece of this equipment.
Purchase Price – used only if OEC is empty
0 – if both fields are empty, in this case an ROI would not be calculated
This means that if an OEC Price is entered, it will always take precedence over the Purchase Price when calculating ROI.
Calculations by Item Type
Different types of items in Renterra handle costs slightly differently:
Serial Items
Have both OEC and Purchase Price fields.
Recommendation: Enter the purchase price in both fields.
OEC ensures accurate ROI calculations.
Purchase Price is still useful for other business and reporting purposes.
Parts
Only have a Purchase Price field (no OEC).
Slots
ROI is aggregated from the items contained within the slot.
What the ROI Formula Includes
ROI in Renterra is calculated using:
The cost of the item (OEC, but if this is not provided, then the Purchase Price).
Any expenses recorded on work orders.
Revenue from the past 12 months, or, if the item has been in the system less than this amount of time, it is annualized. Annualized Revenue means that the revenue for the item so far is projected out for a full year, estimating what the revenue would be for an entire 12-month period if that same rate continued.
👉 Best Practice: For Serial Items, if you are uncertain about the OEC, enter the Purchase Price in both the OEC and Purchase Price fields. This ensures ROI is calculated correctly and you maintain a complete record for other reports.