How do you calculate die cost amortization?

Multiply quoted quantity by the amortization rate and recovery share, then add the fixed die charge. Here 25,000 pieces at $0.08 and 100% recovery gives $2,000, plus a $3,500 fee for $5,500 total.

What is a die amortization rate?

It is the tooling cost loaded into each piece, here $0.08, or effectively $0.22 per piece once the fixed fee is spread. It comes from die cost divided by the quantity you expect to recover it over.

Should I charge a separate die fee or amortize it?

Many extruders do both: a fixed engineering fee ($3,500 here) covers design and a portion of cutting, while the per-piece rate recovers the rest. Splitting it keeps the piece price competitive on repeat orders.

Why is die cost per piece higher on short runs?

The same die cost spreads over fewer pieces. Amortizing a $5,500 recovery over 25,000 pieces is $0.22 each, but over 5,000 pieces it would be over $1.00 each, which can sink a quote.

What does a 100% recovery share mean?

It means you intend to recover the full amortized die cost on this single order. A lower share, say 50%, recovers half now and banks the rest against expected repeat business.

How do I quote a die that will see repeat orders?

Set the recovery share below 100% so each order pays part of the die, or amortize over the lifetime quantity you expect rather than just the first order.

Aluminum Extrusion & Profile Manufacturing calculator

Extrusion Die Cost Amortization Calculator

Die cost amortization is how an extruder recovers the cost of cutting, nitriding and correcting an extrusion die by spreading it across the pieces or pounds quoted on an order. Estimators and sales engineers build this into a quote so a custom profile pays back its tooling investment instead of eroding margin. The calculation combines a per-piece amortization rate with any fixed die charge or engineering fee billed up front. Getting it right protects margin on short runs, where tooling cost per piece is highest, and keeps quotes competitive on long runs where the die is effectively free.

What this calculator does

Estimate die cost charged to an aluminum profile order from order quantity, amortization rate, cost recovery share, and fixed die charge.
an estimator needs to decide how much die cost to include in a profile quote
It computes total die cost recovered on an order by multiplying quantity by an amortization rate and recovery share, then adding a fixed die or engineering fee.

Formula used

Amortized die cost recovered = quoted profile quantity or weight × die amortization rate × die cost recovery share
Total die cost recovered = amortized die cost recovered + fixed die charge or engineering fee

Inputs explained

Quoted profile quantity:
Die amortization rate per piece:
Die cost recovery share:
Fixed die charge or engineering fee:

How to use the result

Use it when quoting a custom or new-die profile and deciding how much tooling cost to load into the piece price.
It assumes a single amortization rate and recovery share for the whole order; it does not model die life, correction costs or repeat-order amortization across multiple jobs.

Current U.S. benchmarks

The producer price index for aluminum mill shapes stands at 404.859 (BLS, May 2026), up 36.8% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 3,569 primary metal manufacturing establishments employing about 354,911 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate die cost amortization? Multiply quoted quantity by the amortization rate and recovery share, then add the fixed die charge. Here 25,000 pieces at $0.08 and 100% recovery gives $2,000, plus a $3,500 fee for $5,500 total.
What is a die amortization rate? It is the tooling cost loaded into each piece, here $0.08, or effectively $0.22 per piece once the fixed fee is spread. It comes from die cost divided by the quantity you expect to recover it over.
Should I charge a separate die fee or amortize it? Many extruders do both: a fixed engineering fee ($3,500 here) covers design and a portion of cutting, while the per-piece rate recovers the rest. Splitting it keeps the piece price competitive on repeat orders.
Why is die cost per piece higher on short runs? The same die cost spreads over fewer pieces. Amortizing a $5,500 recovery over 25,000 pieces is $0.22 each, but over 5,000 pieces it would be over $1.00 each, which can sink a quote.
What does a 100% recovery share mean? It means you intend to recover the full amortized die cost on this single order. A lower share, say 50%, recovers half now and banks the rest against expected repeat business.

Last reviewed 2026-05-12.