How to Measure the ROI of Oil Testing

Just about every decision in business is focused on ROI, so there must be a financial benefit for starting a lubrication monitoring program in the first place. And there is: oil analysis more than pays for itself with a proven ROI that can range from 250%-2000%. There aren’t many business solutions that can make that claim!

                In our experience, ROI comes in the form of the following:

  • Optimizing lubricant condition
  • Decreasing the number of repairs and downtime
  • Extending machine life and drain intervals
  • Reducing the severity of failures

                These are all areas delivering results that can be measured. To that end, here is a simple method for predicting ROI:

  • Determine costs
    • Initial setup (sample fittings, software, training, consulting, etc.)
    • Ongoing costs (salaries, testing costs, etc.)
  • Determine potential savings
    • Increased reliability and OEE
    • Decreased parts and labor costs

Once the program is up and running, a good method for measuring ROI is to employ Key

Performance Indicators (KPIs). One common KPI is the number of all predictive oil changes, filtration requests, dehydration requests, etc.  Another KPI is the change in frequency of remediation activities.

                A regular review, with a cost-benefit evaluation of the money saved by avoiding maintenance issues or downtime due to oil analysis, will allow for continuous improvement by realigning the program with either preexisting or new reliability objectives.

                These are just some elementary considerations; there is a lot more that goes into measuring the ROI of an oil testing program.  But no matter how ROI is measured, the important point to remember is that oil analysis—performed by an experienced and qualified lab delivers phenomenal ROI—all the time. 

                TestOil does not shy away from measuring ROI. In fact, we encourage our customers to measure ROI at regular intervals and are happy to provide any help in that regard—including baking it into programs we set up through KickStart PRO.  For more information on working with TestOil for oil analysis and training visit, call 216-251-2510 or email

                With more than 30 years of experience in the oil analysis industry, TestOil focuses exclusively on assisting industrial facilities with reducing maintenance costs and avoiding unexpected downtime through oil analysis program implementation. As industry experts in diagnosing oil-related issues in equipment such as turbines, hydraulics, gearboxes, pumps, compressors and diesel generators, TestOil provides customers with a guarantee of same-day turnaround on all routine testing. TestOil PRO certified lubrication professionals educate the industry on oil analysis through public and private onsite training. These highly experienced professionals provide a variety of onsite services; from collecting oil samples to conducting failure analyses to writing work orders. For more information on partnering with TestOil on oil analysis programs or training opportunities visit Contact: Michael Barrett 216-251-2510;

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