Motors, Generators & Electrification Equipment worked example

Magnet Cost per Motor at 58% usable magnet share after scrap: a worked example

Suppose usable magnet share after scrap falls to 58%. This page works the full calculation at that level so you can see exactly which result moves and by how much. 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.

The inputs for this scenario

  • Permanent magnets per motor: 100 magnets (held at the documented default)
  • Delivered cost per magnet: 45 $ / magnet (held at the documented default)
  • Usable magnet share after scrap: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed magnet program cost: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable magnet cost = magnets per motor × cost per magnet × usable magnet share.
  • Total magnet cost per motor works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Magnet cost per magnet works out to 28.6 $ / piece at these inputs.
  • Variable magnet cost works out to 2,610 $ at these inputs.
  • Fixed magnet program cost works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where usable magnet share after scrap sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • 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. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total magnet cost per motor: 2,860 $ (headline result)
  • Magnet cost per magnet: 28.6 $ / piece
  • Variable magnet cost: 2,610 $
  • Fixed magnet program cost: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Magnet Cost per Motor calculator, set usable magnet share after scrap to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.