Calculator Inputs
Example Data Table
| Scenario | Tool Cost | Demand Units | Yield | Lifecycle Tooling Cost | Tooling Cost / Unit | Total Cost / Unit |
|---|---|---|---|---|---|---|
| Sample Manufacturing Program | $48,000.00 | 120,000 | 95.50% | $89,178.00 | $0.7432 | $2.4500 |
| Higher Volume Variant | $48,000.00 | 180,000 | 95.50% | $89,478.00 | $0.4971 | $2.2039 |
These examples show how higher volume usually lowers tooling amortization per good unit, even when setup and variable costs still apply.
Formula Used
Gross Units = Demand Units ÷ Yield Rate
Parts per Hour = (Cavities × 3600) ÷ Cycle Time in Seconds
Run Hours = Gross Units ÷ Parts per Hour
Setup Cost = Ceiling(Gross Units ÷ Batch Size) × Setup Hours per Batch × Setup Rate
Lifecycle Tooling Cost = Initial Investment + Annual Support Cost × Tool Life + Refurbishment Total + Financing Cost + Setup Cost − Salvage Value
Tooling Cost per Good Unit = Lifecycle Tooling Cost ÷ Demand Units
Total Cost per Good Unit = (Lifecycle Tooling Cost + Gross Units × Variable Cost per Gross Unit) ÷ Demand Units
How to Use This Calculator
Enter the one-time tool purchase, engineering, and qualification costs first. These values form the initial investment that must be recovered over production.
Next, enter lifecycle items such as maintenance, storage, refurbishments, finance rate, and salvage value. These reflect the total ownership burden of the tool over its working life.
Then add manufacturing assumptions including demand units, yield, cavities, cycle time, batch size, and setup information. These values determine required gross production, batches, and setup cost.
Finally, include material, labor, and overhead cost per gross unit. Submit the form to see tooling recovery, total unit cost, required gross units, scenario comparisons, and exportable reports.
FAQs
1. What does tooling cost amortization mean?
It means spreading the total lifecycle cost of a tool across the sellable units it supports. This helps estimate how much tooling burden belongs to each finished part.
2. Why does the calculator use demand units and gross units?
Demand units represent good parts needed by customers. Gross units represent everything that must be produced, including scrap, to satisfy that demand at the chosen yield.
3. How does yield affect amortization?
Lower yield increases gross units, waste, setup exposure, and variable cost consumption. Even if tooling spend stays similar, fewer good units carry that burden, raising amortization per unit.
4. Should maintenance be entered as annual or total?
Use the annual figure. The calculator multiplies it by tool life years, making it easier to model different lifespans without reworking the maintenance input each time.
5. What is salvage value?
Salvage value is the amount recovered when the tool is sold, reused, or written down at the end of life. It reduces the net lifecycle tooling burden.
6. Why is setup cost included?
Repeated setups consume labor and preparation time. In short-run or many-batch programs, setup can materially change the real cost recovered through tooling amortization.
7. What does break-even units mean here?
Break-even units show how many good units are needed to bring tooling amortization down to your target tooling cost per unit. It is a practical planning threshold.
8. When should I update the assumptions?
Refresh assumptions whenever demand, yield, cycle time, maintenance expectations, or finance conditions change. Small shifts in these drivers can meaningfully alter per-unit recovery.