Tooling worked example
Setup Cost with setup time of 6.25 hr: a worked example
This scenario runs the setup cost calculation on the strong side: setup time of 6.25 hr, with every other input held at its documented default. Use when setup time changes the real cost per part.
The inputs for this scenario
- Setup time: 6.25 hr (raised for this scenario; the documented default is 2.5)
- Setup labor rate: 42 $ / hr (unchanged)
- Machine rate during setup: 65 $ / hr (unchanged)
- Outside / consumable setup cost: 35 $ (unchanged)
- Batch size: 400 parts (unchanged)
Working through the calculation
- Applying the documented formula (Total setup cost = setup time × (labor rate + machine rate) + outside cost) to the inputs above produces each figure below.
- At this operating point the engine returns 1.76 $ / unit for setup cost per unit, the number this scenario is built around.
- At this operating point the engine returns 704 $ / run for total setup cost.
- At this operating point the engine returns 6.25 hr for setup hours.
- At this operating point the engine returns 400 parts for batch size.
How this compares with the baseline
- Against the tool's baseline example, where setup time sits at 2.5 hr and the headline result is 0.76 $ / unit, this scenario comes in 133% above the baseline at 1.76 $ / unit.
- Use it when quoting a new part number, deciding whether to combine orders into one setup, or finding the break-even batch size below which setup dominates the price. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.
Results at a glance
- Setup cost per unit: 1.76 $ / unit (headline result)
- Total setup cost: 704 $ / run
- Setup hours: 6.25 hr
- Batch size: 400 parts
Run it with your numbers
- Every input above is editable in the live Setup Cost calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.