Tooling, Fixtures, Dies & Mold Economics calculator

Tooling Amortization Calculator

Allocate a tool investment across its expected good parts. Enter installed cost, residual value, lifetime output, period output and your quoted tooling allowance.

What this calculator does

  • Allocate net tooling investment per good part and compare its recovery rate with your part quote.

Formula used

  • Recoverable investment = installed investment − residual value
  • Amortization per good part = recoverable investment ÷ lifetime good parts
  • Period allocation = amortization per good part × period good parts
  • Investment after allocation = recoverable investment − period allocation
  • Allowance headroom = part tooling allowance − amortization per good part

Inputs explained

  • Installed Tool Investment: Capitalized purchase, shipping and qualification cost from your asset record.
  • Expected Residual Value: Supported disposal or reuse value at the end of this allocation.
  • Lifetime Good Part Quantity: Estimated total good parts assigned to this tool in your forecast.
  • Period Good Part Quantity: Good parts produced during the allocation period from your production record.
  • Tooling Allowance per Part: Maximum tooling recovery allowance used in your approved part quote.

How to use the result

  • Best suited to production quote Recovery, period cost allocation.
  • This estimates a production allocation; accounting policy and tax depreciation require separate decisions. Investment after allocation excludes allocations recorded in earlier periods.

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

  • Does amortization include tool repairs? No. This allocates installed investment less residual value. Budget routine repairs and maintenance separately unless your accounting policy capitalizes a specific improvement.
  • What if my actual volume falls? The tooling allowance per good part rises when the lifetime quantity falls. Update the forecast before relying on the original recovery rate.
  • Is this the tool's book value? No. Investment after this period allocation subtracts only the period quantity entered here. Earlier recorded allocations are outside this calculation.
  • Can I use this rate for tax depreciation? No. This is a units of production allocation for planning. Confirm the depreciation method and eligible basis with your accounting policy.

Related guides

Last reviewed 2026-10-06.