# SMT Setup Cost and Minimum Batch Size Calculator

> Source: https://netray.co/tools/smt-setup-cost-batch-size-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Find setup cost per board for any batch size, and the minimum batch needed to keep setup under a target cost per board.

## Category

electronics

## Industry

Electronics Manufacturing

## Audience

- EMS planner
- PCBA cost estimator
- Production manager

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Line setup time

**Key:** setup_min

**Type:** number

**Default:** 60

**Min:** 0

**Step:** 5

**Unit:** min

**Help:** Feeder loading, program load, stencil change, paste print setup.

#### First article and verification time

**Key:** fai_min

**Type:** number

**Default:** 20

**Min:** 0

**Step:** 5

**Unit:** min

#### People on setup

**Key:** staff

**Type:** number

**Default:** 2

**Min:** 1

**Step:** 1

**Unit:** people

#### Loaded labor rate

**Key:** labor

**Type:** number

**Default:** 30

**Min:** 0

**Step:** 1

**Unit:** per hour per person

#### Line hourly cost while idle

**Key:** machine

**Type:** number

**Default:** 110

**Min:** 0

**Step:** 5

**Unit:** per hour

**Help:** Depreciation, floor space and utilities charged to the line.

#### Batch size

**Key:** batch

**Type:** number

**Default:** 200

**Min:** 1

**Step:** 10

**Unit:** boards

#### Target setup cost per board

**Key:** target

**Type:** number

**Default:** 0.5

**Min:** 0.01

**Step:** 0.05

**Unit:** per board

**Outputs:**

#### Total setup hours

**Key:** hours

**Expr:** (setup_min + fai_min) / 60

**Format:** decimal

#### Setup cost per job

**Key:** setup_cost

**Expr:** hours * (staff * labor + machine)

**Format:** currency

#### Setup cost per board

**Key:** per_board

**Expr:** setup_cost / batch

**Format:** currency

**Primary:** true

#### Minimum batch for target

**Key:** min_batch

**Expr:** ceil(setup_cost / target)

**Format:** integer

**Primary:** true

**Description:** Boards needed so setup per board does not exceed the target.

**Chart:**

#### Setup cost per board vs batch size

**Type:** line

**X:** batch

**From:** 10

**To:** 1000

**Steps:** 40

**Series:**

- per_board

**Disclaimer:** A planning model. Real setup time varies with feeder count, component mix, stencil changes and whether similar jobs run back to back.

## Content

**Intro:** Setup is the hidden cost behind every EMS minimum order quantity. This calculator spreads setup and first article time across your batch size so you can see why small runs cost more per board and where the curve flattens.

**Sections:**

#### How to use it

**Body:** Enter setup minutes for loading feeders, loading the program, changing the stencil and setting up print, then add first article verification. Enter the people on setup, their loaded rate and the line cost per hour while it is not producing. Set a batch size to see setup cost per board, or set a target to see the minimum batch.

#### The formula behind it

**Body:** Setup cost equals total setup hours times the sum of labor and line cost. Setup cost per board equals setup cost divided by batch size. The minimum batch for a target equals setup cost divided by the target per board, rounded up.

**Bullets:**

- Per-board setup cost falls as 1 over batch size
- The curve flattens quickly past a few hundred boards
- Kitted, repeat jobs lower setup time

#### Reading the result

**Body:** With 80 minutes of setup, two people at 30 per hour and a line cost of 110 per hour, setup costs about 227 per job. At a batch of 200 that is roughly 1.13 per board, and for a 0.50 target the minimum batch is about 454. Use this to justify batching small orders into one build or charging a setup fee.

#### Common mistakes

**Body:** Leaving out the line cost undercounts the true price of setup, since the line is stopped while it happens. Others forget that stencil cleaning, feeder calibration and rework of first article issues add real minutes. Measure actual setup durations from MES events rather than relying on estimates.

**Cta:** Netray can read actual setup and changeover times from your MES or ERP routing data so these numbers come from your shop, not a guess.

**Faq:**

#### Should I include programming time?

**Answer:** Include it only if it repeats on every job. One-time NPI programming and fixture work is usually an NRE charge, not a per-job setup.

#### How do I reduce setup cost?

**Answer:** Use kitted material, common feeders across jobs, offline feeder setup, standardized stencil frames and sequence jobs that share components. These cut setup minutes and the break-even batch.

#### Is the line hourly cost realistic when idle?

**Answer:** It should reflect the cost of capacity that cannot produce during setup, typically depreciation, space and overhead absorption. Use your own accounting rate.

#### How does this relate to SMED?

**Answer:** SMED reduces setup minutes by moving tasks offline. Enter reduced minutes here to see the per-board effect, then use the changeover reduction savings calculator for payback.

## Search terms

smt setup cost calculator, pcba minimum order quantity, smt changeover cost per board, ems batch size calculator, pcba setup fee, smt line setup time cost, low volume pcba cost, ems minimum order quantity

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