Tool Sharpening, Reconditioning & Industrial Repair Services worked example

Cost Per Restored Tool at 58% billable capture rate on variable cost: a worked example

This worked example runs the cost per restored tool numbers for a tougher week than the baseline: 58% billable capture rate on variable cost instead of the typical 80%. Cost per restored tool is the fully loaded cost of bringing one worn cutting tool back to spec, including per-tool grinding cost adjusted for how much of that variable cost actually applies, plus the fixed setup and overhead spread across the run.

The inputs for this scenario

  • Number of tools restored in the run: 100 units (held at the documented default)
  • Variable grinding cost per tool: 45 $ / unit (held at the documented default)
  • Billable capture rate on variable cost: 58 % (the input this scenario stresses; the baseline uses 80)
  • Fixed setup and overhead for the run: 250 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Cost Per Restored Tool cost = quantity × rate × capture factor + fixed cost.
  • Weighted cost works out to 2,860 $ at these inputs, and this is the headline figure for the scenario.
  • Per piece value works out to 28.6 $ / piece at these inputs.
  • Captured value works out to 2,610 $ at these inputs.
  • Fixed adjustment works out to 250 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where billable capture rate on variable cost sits at 80% and the headline result is 3,850 $, this scenario comes in 25.71% below the baseline at 2,860 $.
  • Use it when pricing a batch of resharpening or when comparing recondition-versus-replace economics for a specific tool type. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Weighted cost: 2,860 $ (headline result)
  • Per piece value: 28.6 $ / piece
  • Captured value: 2,610 $
  • Fixed adjustment: 250 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Cost Per Restored Tool calculator, set billable capture rate on variable cost to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.