# Stamping Piece Price at Volume Calculator with Die Amortization

> Source: https://netray.co/tools/stamping-piece-price-at-volume-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Build up the piece price of a stamped part from die amortization, die maintenance, setup, press time, material and secondary operations, and see how price falls with volume.

## Category

cost-finance

## Industry

Metal Stamping

## Audience

- Estimator
- Sales engineer
- Controller

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Annual volume

**Key:** vol

**Type:** number

**Default:** 100000

**Min:** 1

**Step:** 1000

**Unit:** pcs/yr

#### Progressive die cost

**Key:** die_cost

**Type:** number

**Default:** 85000

**Min:** 0

**Step:** 1000

**Unit:** $

#### Amortization period

**Key:** years

**Type:** number

**Default:** 5

**Min:** 1

**Max:** 15

**Step:** 1

**Unit:** years

**Help:** Program life over which you recover the die. Use the customer commitment, not the die life.

#### Die maintenance

**Key:** maint_pct

**Type:** number

**Default:** 3

**Min:** 0

**Step:** 0.5

**Unit:** % of die cost per year

**Help:** Sharpening, replacement punches and repair.

#### Setup cost per run

**Key:** setup

**Type:** number

**Default:** 450

**Min:** 0

**Step:** 25

**Unit:** $

**Help:** Die set, first-piece approval and teardown, including labor and press time.

#### Run size

**Key:** run_size

**Type:** number

**Default:** 25000

**Min:** 1

**Step:** 500

**Unit:** pcs per run

#### Strokes per minute

**Key:** spm

**Type:** number

**Default:** 60

**Min:** 1

**Step:** 5

**Unit:** SPM

#### Parts per stroke

**Key:** ppstroke

**Type:** number

**Default:** 1

**Min:** 1

**Step:** 1

#### Press efficiency

**Key:** eff

**Type:** slider

**Default:** 80

**Min:** 40

**Max:** 95

**Step:** 1

**Unit:** %

**Help:** Allows for coil changes, jams and minor stops.

#### Press hourly rate, loaded

**Key:** rate

**Type:** number

**Default:** 95

**Min:** 0

**Step:** 5

**Unit:** $/hr

**Help:** Machine, labor and burden for the press and operator.

#### Net material cost per part

**Key:** mat

**Type:** number

**Default:** 0.19

**Min:** 0

**Step:** 0.005

**Unit:** $/pc

**Help:** From the strip layout, after scrap credit.

#### Process scrap and rejects

**Key:** scrap

**Type:** number

**Default:** 1.5

**Min:** 0

**Max:** 50

**Step:** 0.5

**Unit:** %

#### Secondary ops per part

**Key:** second

**Type:** number

**Default:** 0.04

**Min:** 0

**Step:** 0.005

**Unit:** $/pc

**Help:** Tumbling, plating allowance, packaging, inspection.

#### Target gross margin

**Key:** margin

**Type:** slider

**Default:** 18

**Min:** 0

**Max:** 50

**Step:** 1

**Unit:** %

**Outputs:**

#### Good parts per hour

**Key:** pph

**Expr:** spm * 60 * ppstroke * eff / 100

**Format:** integer

**Description:** Strokes per minute x 60 x parts per stroke x efficiency.

#### Press cost ($/pc)

**Key:** press_pp

**Expr:** rate / pph

**Format:** decimal

#### Die amortization ($/pc)

**Key:** amort_pp

**Expr:** die_cost / (vol * years)

**Format:** decimal

**Description:** Die cost spread over total program pieces.

#### Die maintenance ($/pc)

**Key:** maint_pp

**Expr:** die_cost * maint_pct / 100 / vol

**Format:** decimal

#### Runs per year

**Key:** runs

**Expr:** ceil(vol / run_size)

**Format:** integer

#### Setup ($/pc)

**Key:** setup_pp

**Expr:** setup * runs / vol

**Format:** decimal

#### Material incl. scrap ($/pc)

**Key:** mat_pp

**Expr:** mat / (1 - scrap / 100)

**Format:** decimal

#### Total cost per piece

**Key:** cost_pp

**Expr:** press_pp + amort_pp + maint_pp + setup_pp + mat_pp + second

**Format:** currency

**Primary:** true

#### Piece price at target margin

**Key:** piece_price

**Expr:** cost_pp / (1 - margin / 100)

**Format:** currency

**Primary:** true

**Description:** Cost divided by (1 - margin), so the margin is a share of price.

**Chart:**

#### Piece price vs annual volume

**Type:** line

**X:** vol

**From:** 5000

**To:** 500000

**Steps:** 40

**Series:**

- piece_price
- amort_pp

**Disclaimer:** A planning model. It excludes freight, tooling financing cost, cost of capital and customer-specific terms. Tooling is often invoiced separately; set die cost to zero to price the part only.

## Content

**Intro:** A stamped part price is the sum of material, press time, setup and tooling recovery, and the tooling part is what swings with volume. This calculator builds the piece price line by line and charts how it falls as annual volume grows.

**Sections:**

#### How to use it

**Body:** Start with the die quote and the commitment period the customer will sign for. Enter strokes per minute from the die designer, parts per stroke, and a realistic efficiency; 80 percent is a common planning figure for progressive dies. Add the loaded press rate, net material cost from the strip layout, and any secondary operations. The chart sweeps annual volume so you can see the break between a low-volume price and a high-volume price, which is what you need to build a price-break table for the RFQ response.

#### Formulas used

**Body:** Good parts per hour equals strokes per minute times 60 times parts per stroke times efficiency. Press cost per part equals hourly rate divided by good parts per hour. Die amortization per part equals die cost divided by annual volume times years. Maintenance per part equals die cost times the annual maintenance percent divided by annual volume. Setup per part equals setup cost times the number of runs divided by volume. Price equals cost divided by one minus margin.

**Bullets:**

- Margin is a share of price, not a markup on cost.
- Scrap is applied to material only; add rework cost in secondary operations.
- Amortization uses the commitment period, not the physical die life.

#### Reading the result

**Body:** At low volume the amortization and setup lines dominate, so the price is highly sensitive to the program quantity; at high volume press time and material take over. If the customer will not commit to volume, quote the die separately or add a tooling surcharge so an under-run does not leave the tool unrecovered. Compare the output with your ERP standard cost for similar parts. Large gaps usually come from efficiency assumptions, not the arithmetic.

**Cta:** If you quote from spreadsheets today, we can connect this logic to ERP routing, work center rates and material costs so the same model drives quotes and standards. Ask for a walkthrough.

**Faq:**

#### How do I amortize a progressive die?

**Answer:** Divide the die cost by total program pieces, which is annual volume times the committed years. Add maintenance as a yearly percent of die cost. Use the contracted commitment, not the die's physical life, or you will under-recover on short programs.

#### What press efficiency should I use?

**Answer:** Eighty percent is a typical planning figure for a progressive die on a stable job. New or complex dies, thin coil, or poor feed can run at 60 to 70 percent. Use your historic OEE data from the shop floor system if you have it.

#### Why is margin divided instead of multiplied?

**Answer:** A 20 percent gross margin means profit is 20 percent of selling price. Dividing cost by 0.80 achieves that. Multiplying cost by 1.20 gives a 16.7 percent margin, a common source of under-pricing.

#### Should tooling be in the piece price?

**Answer:** It depends on the contract. Many customers pay for the die up front or in installments; in that case set die cost to zero here. Where the supplier carries the tool, amortization in the piece price should be paired with a minimum volume or termination clause.

## Search terms

stamping piece price calculator, progressive die cost amortization, stamping cost estimating, price per part at volume stamping, die amortization per piece, stamping quote calculator, cost per stamped part, stamping press hourly rate cost

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