Is this reserve the same as depreciation?

No. Depreciation allocates historical asset cost. This estimates cash funding for a future replacement using its current quoted cost and existing assigned funds.

What if the reserve already covers replacement?

Required reserve per part is zero. The funding headroom shows any existing excess plus the planned new contributions.

Where do remaining good parts come from?

Use a supported remaining-life plan based on counters, approved service limits and expected yield. Do not enter theoretical parts that the tool cannot deliver.

Does this guarantee replacement cash will be available?

No. The plan assumes contributions are actually funded and available before replacement is due. Check cash timing and any restrictions on the assigned reserve.

Tooling, Fixtures, Dies & Mold Economics calculator

End of Life Tooling Reserve Calculator

Set a replacement funding contribution per remaining good part. Enter the qualified replacement quote, disposal recovery, existing reserve, remaining output and your planned contribution.

What this calculator does

Estimate the cash reserve needed per remaining good part to fund a qualified replacement tool.

Formula used

Net replacement need = max(replacement cost − disposal recovery, 0)
Unfunded amount = max(net replacement need − existing reserve, 0)
Required reserve per part = unfunded amount ÷ remaining good parts
Planned new funding = planned contribution per part × remaining good parts
Funding headroom = existing reserve + planned new funding − net replacement need

Inputs explained

Qualified Replacement Tool Cost: Current quoted replacement purchase and qualification cost for the same required scope.
Expected Tool Disposal Recovery: Supported net proceeds expected when the retired tool is disposed of.
Cash Already Reserved: Funding currently assigned to this replacement from your internal reserve record.
Remaining Good Parts for Funding: Supported good-part quantity before replacement from the remaining-life plan.
Planned Reserve Contribution per Part: Cash funding contribution you plan to allocate per remaining good part.

How to use the result

Best suited to tool replacement Funding, end of life quote allowance.
This is internal cash planning, not depreciation or a recognized accounting liability. Financing, inflation, interest and timing of cash receipts are excluded.

Current U.S. benchmarks

The producer price index for plastic resins and materials stands at 280.569 (BLS, Aug 2026), up 6.6% from a year earlier. Quotes priced off last quarter's material cost miss this move.
The U.S. has 14,378 furniture and related products establishments employing about 355,594 workers (Census County Business Patterns, 2023).

Common questions

Is this reserve the same as depreciation? No. Depreciation allocates historical asset cost. This estimates cash funding for a future replacement using its current quoted cost and existing assigned funds.
What if the reserve already covers replacement? Required reserve per part is zero. The funding headroom shows any existing excess plus the planned new contributions.
Where do remaining good parts come from? Use a supported remaining-life plan based on counters, approved service limits and expected yield. Do not enter theoretical parts that the tool cannot deliver.
Does this guarantee replacement cash will be available? No. The plan assumes contributions are actually funded and available before replacement is due. Check cash timing and any restrictions on the assigned reserve.

Last reviewed 2026-10-06.