Foundry & Forging calculator
Pattern Cost Amortization Calculator
Assign pattern investment to the castings expected from its production program. Enter purchase, engineering, documented residual value, allocation share and accepted-volume forecast.
What this calculator does
- Spread the assigned net pattern investment over the castings expected to be accepted.
Formula used
- Gross pattern investment = purchase cost + separate engineering
- Net investment = gross pattern investment − residual value
- Assigned investment = net investment × allocation share ÷ 100
- Pattern cost per accepted casting = assigned investment ÷ expected accepted castings
Inputs explained
- Pattern Purchase Cost: Pattern invoice excluding separately entered engineering.
- Separate Pattern Engineering: Engineering invoice excluded from the pattern purchase.
- Pattern Residual Value: Documented recoverable pattern value after the covered production.
- Pattern Cost Allocation Share: Documented share of net pattern investment assigned to this program.
- Expected Accepted Castings: Supported accepted-volume forecast for the covered pattern program.
How to use the result
- Best suited to pattern quote Amortization, program volume review.
- This is a quoting allocation, not tax depreciation or financial reporting advice. The casting forecast does not predict pattern wear or service life.
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 3,569 primary metal manufacturing establishments employing about 354,911 workers (Census County Business Patterns, 2023).
Common questions
- Is this tax depreciation? No, it assigns a documented pattern investment to a production volume for quoting or internal cost review. Financial reporting and tax treatment require the applicable accounting policy.
- What belongs in residual value? Use the documented value recoverable from the pattern after the covered program. Do not assume the full purchase price will be recovered.
- Do rejected castings recover the investment? They do not count as accepted output in this allocation. The same assigned investment spread over fewer accepted castings produces a higher unit charge.
- What happens after a design revision? Reassess the remaining recoverable value and accepted-volume forecast. Add new tooling invoices only when they belong to the same revised cost assignment.
Last reviewed 2026-10-06.