BIZOMAT Tools · Manufacturing
Tooling Payback
How quickly will new tooling pay back?
Calculates the payback of new tooling from the unit-cost saving and annual volume.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Tooling investment | $ | Quoted tooling cost |
| Current cost / unit | $ | Current unit cost |
| New cost / unit | $ | Unit cost with the new tooling (trial or quotation) |
| Annual volume | units | Annual volume forecast |
What each input means
Open an input to see what it is, its units, the worked example and the common mistakes, with a small diagram.
What this means: Tooling investment
- What it is
- The one-off cost of the new tool, die, mould or fixture, from a quotation, including try-out and approval.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $15000 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Payback and units to pay back rise in proportion.
- Get it right
- Include sampling, try-out and first-article costs, not just the tool price.
What this means: Current cost / unit
- What it is
- What one unit costs to make now with the existing method or tooling.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $5.2 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A higher current cost increases the saving per unit.
- Get it right
- Use the same cost basis for old and new, for example both including scrap and labour.
What this means: New cost / unit
- What it is
- What one unit is expected to cost with the new tooling, from a trial or the supplier’s quotation.
- Units and format
- Enter a number in $: an amount of money; use one currency for every money input. The form accepts $0 or more.
- Example
- The form opens with $4.1 as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- A lower new cost increases the saving and shortens payback.
- Get it right
- Include tool maintenance and sharpening per unit if they change with the new tool.
What this means: Annual volume
- What it is
- The number of units expected to be made with the tooling each year, from the forecast.
- Units and format
- Enter a number in units: a count of units. The form accepts 0 units or more.
- Example
- The form opens with 20000 units as a worked example. It is an illustration, not a recommended value: replace it with your own figure.
- Effect on the result
- Higher volume raises the annual saving and shortens payback in years.
- Get it right
- Check the tool life covers the payback quantity before relying on the result.
Method and formulas
- Annual saving = (old − new unit cost) × volume
- Payback = tooling ÷ annual saving
- Units to pay back = tooling ÷ saving per unit
Limitations
- Ignores tool maintenance and life unless built into unit cost
Typical uses
- Approving new dies, moulds or fixtures
- Comparing tooling options
Who it is for
- Manufacturing engineers
- Purchasing
What you get
- Saving per unit and per year
- Units and years to pay back
Interpreting the result
- Check the tool will last longer than the payback quantity
BIZOMAT tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.