Calculate ROI, payback period, and financial feasibility for molds, dies, jigs, fixtures, and manufacturing tooling investments.
Industry Quick Start ? Select your industry for pre-configured cost parameters and industry benchmarks. Customize any values after selection.
Automotive
High volume, tight tolerances
Aerospace
High precision, certification
Medical
Clean room, validation
Consumer Goods
Cost-sensitive, high volume
Industrial
Heavy duty, durability
Custom
Configure all parameters
Step 1: Tooling Specifications
Parts per year
Years
Cavities/mold
Step 2: Investment Cost Breakdown ? Enter all costs associated with the tooling investment. Use industry averages or your specific quotes.
Direct Costs
Design & Engineering
USD
Material Costs
USD
Manufacturing/Labor
USD
Heat Treatment/Finishing
USD
Quality Inspection
USD
Total Direct Costs:
$53,000
Indirect Costs
Project Management
USD
Testing & Validation
USD
Documentation
USD
Shipping & Transport
USD
Installation & Setup
USD
Total Indirect Costs:
$21,500
Recurring Annual Costs
USD/year
USD/year
USD/year
USD/year
Step 3: Financial Analysis & ROI
% per year
% per year
%
% of production
USD/part
USD/part
% reduction
% annual
Years
Investment Analysis Results
INVESTMENT VERDICT
HIGHLY RECOMMENDED
TOTAL INVESTMENT
$0
NET PRESENT VALUE
$0
ANNUAL ROI
0%
Payback Period
2.3 years
Time to recover investment
Internal Rate of Return
42.5%
Annualized return rate
Break-even Volume
45,200
Parts to break even
Cost Savings/Year
$225,000
Annual cost reduction
Scenario Comparison
With New Tooling
Initial Investment:
$74,500
5-Year Total Cost:
$385,250
Cost per Part:
$3.25
NPV (5 years):
$185,750
Low Risk
Without New Tooling
Initial Investment:
$0
5-Year Total Cost:
$2,750,000
Cost per Part:
$5.50
NPV (5 years):
$0
High Cost Risk
Tax Benefits & Incentives
DEPRECIATION BENEFIT
$15,680
First year tax savings
SECTION 179 DEDUCTION
$74,500
Full expensing available
NET TAX IMPACT
$25,600
Annual tax reduction
Sensitivity Analysis ? How changes in key assumptions affect your ROI. Green cells show still profitable scenarios.
| Scenario | Production Volume Change | Material Cost Change | Part Cost Savings Change | Adjusted ROI | Verdict |
|---|
Investment Timeline
Year 0: Initial Investment
-$74,500 capital expenditure
Year 1: Payback Start
+$225,000 annual savings begin
Year 2.3: Payback Achieved
Investment fully recovered
Year 3-5: Pure Profit
$225,000 annual savings continue
Year 5: Tooling Replacement
Plan for next investment cycle
Cost Distribution
ROI Timeline
Export & Share Analysis
Risk Assessment
Related Calculators
Frequently Asked Quentions
1. What's the average ROI for tooling investments?
Average ROI for tooling investments ranges from 25% to 300% annually, depending on production volume, part cost savings, and tooling complexity. High-volume automotive tooling often achieves 100-300% ROI, while low-volume specialty tooling may yield 25-50% ROI.
2. How long should tooling last before replacement?
Injection molds typically last 500,000 to 1,000,000 cycles (3-7 years), stamping dies 1-5 million cycles (5-10 years), and fixtures 5-15 years. Lifespan depends on material, maintenance, production volume, and part complexity.
3. What's the typical payback period for manufacturing tooling?
Most tooling investments pay back in 6-24 months. Automotive tooling often pays back in 3-9 months, medical device tooling in 6-18 months, and low-volume industrial tooling in 12-24 months. Payback over 3 years is generally unacceptable.
4. How much does an injection mold cost?
Injection mold costs range from $5,000 for simple single-cavity molds to $500,000+ for complex multi-cavity molds with hot runner systems. Most production molds cost $30,000-$150,000. Cost factors include size, complexity, material, and cavity count.
5. Should I use Section 179 expensing for tooling?
Yes, Section 179 allows immediate expensing of up to $1,160,000 in tooling investments in 2024, providing significant tax savings. This improves cash flow and ROI compared to depreciation. Most manufacturing tooling qualifies for Section 179.
6. How do I calculate the break-even volume for tooling?
Calculate break-even volume by dividing total tooling investment by the per-part cost savings. Example: $100,000 investment ÷ $2.50 savings per part = 40,000 parts to break even. Our calculator automates this with scrap rate and discounting adjustments.
7. What discount rate should I use for tooling NPV calculations?
Use 8-12% for large corporations (based on WACC), 12-18% for small manufacturers (risk-adjusted), or 15-25% for startups. Conservative analysis uses 15% minimum. The discount rate should reflect your company's cost of capital and risk tolerance.
8. How much should I budget for tooling maintenance?
Budget 3-8% of initial tooling cost annually for maintenance. Injection molds require 5-8% for regular maintenance, cleaning, and repairs. Stamping dies need 3-5%, while fixtures require 2-4%. Preventive maintenance extends tool life and reduces unexpected downtime.
9. What's better: buying tooling with cash or financing?
Financing often provides better ROI due to tax benefits and preserved cash flow. With current Section 179 deductions and deductible interest, financing can improve after-tax ROI by 15-25% compared to cash purchase, despite interest costs.
10. How do I justify tooling investment to management?
Present: 1) Payback period ($50,000), 3) ROI (>25%), 4) Risk assessment, 5) Sensitivity analysis, 6) Tax benefits, 7) Competitive advantage. Use our calculator to generate a professional investment proposal with all supporting financials.
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