PLM, BOM & Digital Thread worked example

PLM License Cost per User at 98% active utilization rate: a worked example

This scenario runs the plm license cost per user calculation on the strong side: 98% active utilization rate, with every other input held at its documented default. Use it to right-size your PLM license count by exposing the cost of idle seats.

The inputs for this scenario

  • Licensed PLM seats: 120 seats (unchanged)
  • Annual list price per seat: 2,400 $/seat/yr (unchanged)
  • Active utilization rate: 98 % (raised for this scenario; the documented default is 85)
  • Admin and infrastructure cost: 25,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Effective annual cost = seats x price per seat x utilization rate + admin overhead) to the inputs above produces each figure below.
  • At this operating point the engine returns 307,240 $ for total plm license cost per user cost, the number this scenario is built around.
  • At this operating point the engine returns 2,560 $ / piece for plm license cost per user cost per unit.
  • At this operating point the engine returns 282,240 $ for variable plm license cost per user cost.
  • At this operating point the engine returns 25,000 $ for fixed plm license cost per user adder.

How this compares with the baseline

  • Against the tool's baseline example, where active utilization rate sits at 85% and the headline result is 269,800 $, this scenario comes in 13.88% above the baseline at 307,240 $.
  • Use it before a license renewal, during a seat-count true-up, or when building the business case to reclaim or add PLM seats. 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

  • Total plm license cost per user cost: 307,240 $ (headline result)
  • Plm license cost per user cost per unit: 2,560 $ / piece
  • Variable plm license cost per user cost: 282,240 $
  • Fixed plm license cost per user adder: 25,000 $

Run it with your numbers

  • Every input above is editable in the live PLM License Cost per User calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.