How do you calculate magnet cost per motor?

Multiply magnets per motor by the delivered cost per magnet and by the usable share after scrap to get variable cost, then add the fixed program cost. With 100 magnets at $45, 80% usable and $250 fixed, variable cost is $3,600 and total is $3,850 per motor.

Why does usable magnet share reduce the cost instead of increasing it?

In this model the share scales what you actually pay into the motor; at 80% you are pricing the magnets that survive to assembly. If you instead want full landed cost including scrapped magnets, set the share to reflect purchased rather than usable pieces.

What is a good magnet cost per motor for a PM machine?

There is no universal benchmark because magnet count and grade vary widely, but for high-volume traction or appliance motors teams aim to keep NdFeB magnet content well under half of total material cost. Track your own trend line rather than an industry constant.

How does rare-earth price volatility affect this number?

NdFeB piece price tracks neodymium, praseodymium and dysprosium spot markets, which can move 30 to 50% in a year. Because variable cost dominates the $3,850 total, a 20% magnet price rise here pushes the per-motor figure up by roughly $720.

Magnets per motor vs cost per magnet — which drives cost more?

Both scale variable cost linearly, so a 10% change in either moves the result the same amount. Reducing magnet count through better flux design usually has more durable savings than chasing piece-price concessions on a volatile commodity.

Motors, Generators & Electrification Equipment calculator

Magnet cost per motor Calculator

Magnet cost per motor is the loaded rare-earth (or ferrite) magnet spend that lands on a single finished motor, after accounting for chipping, demag rejects and inspection scrap. In a PM motor, NdFeB magnets are often the single largest bought-in material cost, so cost engineers, sourcing leads and product-line managers track this number on every BOM revision. Because magnet pricing swings with neodymium and dysprosium spot markets, knowing the per-motor figure lets you re-quote quickly and decide when grade substitution or ferrite is worth a redesign. It also exposes how much of your cost is fixed tooling and qualification versus variable piece price.

What this calculator does

Estimate permanent magnet cost per motor so cost and sourcing engineers can size material exposure, compare magnet grades, and decide whether magnet cost is material to the quote.
Use it when magnet cost on a permanent magnet motor or generator is going through a weighted-cost review against the quote.
It computes the total magnet cost charged to one motor by combining the usable-yield-adjusted variable magnet cost with the fixed magnet program cost.

Formula used

Variable magnet cost = magnets per motor × cost per magnet × usable magnet share
Total magnet cost per motor = variable magnet cost + fixed magnet program cost

Inputs explained

Permanent magnets per motor:
Delivered cost per magnet:
Usable magnet share after scrap:
Fixed magnet program cost:

How to use the result

Use it during BOM costing, supplier RFQs, make-vs-buy on magnet assemblies, or whenever rare-earth pricing moves enough to threaten margin.
It treats usable share as a flat multiplier on piece price and does not separately model magnetization energy, adhesive, or yield loss that occurs after the magnets are already installed in the rotor.

Current U.S. benchmarks

The producer price index for copper and brass mill shapes stands at 559.593 (BLS, May 2026), up 76.8% from a year earlier. Quotes priced off last quarter's material cost miss this move. Global copper trades at $13,484 per tonne (IMF via FRED, May 2026).
Steel mill PPI stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. New factory orders are up 2.3% year over year (Census).
The U.S. has 5,397 electrical equipment and appliances establishments employing about 369,437 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate magnet cost per motor? Multiply magnets per motor by the delivered cost per magnet and by the usable share after scrap to get variable cost, then add the fixed program cost. With 100 magnets at $45, 80% usable and $250 fixed, variable cost is $3,600 and total is $3,850 per motor.
Why does usable magnet share reduce the cost instead of increasing it? In this model the share scales what you actually pay into the motor; at 80% you are pricing the magnets that survive to assembly. If you instead want full landed cost including scrapped magnets, set the share to reflect purchased rather than usable pieces.
What is a good magnet cost per motor for a PM machine? There is no universal benchmark because magnet count and grade vary widely, but for high-volume traction or appliance motors teams aim to keep NdFeB magnet content well under half of total material cost. Track your own trend line rather than an industry constant.
How does rare-earth price volatility affect this number? NdFeB piece price tracks neodymium, praseodymium and dysprosium spot markets, which can move 30 to 50% in a year. Because variable cost dominates the $3,850 total, a 20% magnet price rise here pushes the per-motor figure up by roughly $720.
Magnets per motor vs cost per magnet — which drives cost more? Both scale variable cost linearly, so a 10% change in either moves the result the same amount. Reducing magnet count through better flux design usually has more durable savings than chasing piece-price concessions on a volatile commodity.

Last reviewed 2026-05-12.