Why does the saving per tool rise with batch size?

The program and freight charges are fixed, so more tools spread them thinner. At 120 tools the deductions cost 3.50 each; at 300 they cost about 1.40 each.

What counts as savings per reground tool?

The replacement price minus the regrind charge, measured on the same tool family and grade. A quote for a different tool does not compare.

Do I include tools that fail inspection?

No. A tool that comes back out of specification earns nothing, so remove it before dividing the net savings across the batch.

How should I set the target net savings?

Pick the minimum net a regrind batch must clear after all deductions. Many shops set it at the annual saving they have budgeted for.

CNC Machining calculator

Regrind Savings Calculator

Regrinding saves money only after the program and freight are paid. This tool nets the per-tool saving across the batch against those fixed charges.

What this calculator does

Net savings from regrinding tooling instead of replacing it, after program and freight costs.

Formula used

Gross savings = tools sent for regrind × savings per reground tool
Deductions = fixed regrind program cost + freight, inspection, and handling
Net regrind savings = gross savings minus deductions
Net savings per tool = net regrind savings ÷ tools sent for regrind
Gap to target = net regrind savings minus target net savings

Inputs explained

Tools Sent for Regrind: Tools in this batch sent out for reconditioning.
Savings per Reground Tool: Replacement price minus the regrind charge per tool.
Fixed Regrind Program Cost: Setup and program cost to start regrinding this tool.
Freight, Inspection, and Handling: Freight, inspection, and handling paid on the batch.
Target Net Savings: Net savings the batch must clear to be worth running.

How to use the result

Best suited to deciding whether to regrind or replace, sizing an annual regrind program, pricing freight into the regrind case.
Tools that fail inspection or reach their regrind limit are not modeled. In-house regrind labor is not split out from the fixed program cost.

Current U.S. benchmarks

The producer price index for steel mill products stands at 381.162 (BLS, Aug 2026), up 23.4% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 17,154 machine shops establishments employing about 223,303 workers (Census County Business Patterns, 2023).

Common questions

Why does the saving per tool rise with batch size? The program and freight charges are fixed, so more tools spread them thinner. At 120 tools the deductions cost 3.50 each; at 300 they cost about 1.40 each.
What counts as savings per reground tool? The replacement price minus the regrind charge, measured on the same tool family and grade. A quote for a different tool does not compare.
Do I include tools that fail inspection? No. A tool that comes back out of specification earns nothing, so remove it before dividing the net savings across the batch.
How should I set the target net savings? Pick the minimum net a regrind batch must clear after all deductions. Many shops set it at the annual saving they have budgeted for.

Last reviewed 2026-10-01.