Price Formula (Quick View)
Price per Part =
Material Cost/Part
Tooling Cost/Part
Setup Cost/Part
Machine Cost/Part
Labor Cost/Part
Pricing Components Explained
Term | Description |
Material Cost/Part | Total material cost for the job (rounded to full sheet or bar sizes) ÷ quantity ordered |
Tooling Cost/Part | (Recurring cost per part + (Initial cost ÷ quantity ordered)) x Tooling/Supplies Mark-up |
Setup Cost/Part | Setup labor cost per part (machine setup, fixturing, first‑piece inspection, etc.) |
Machine Cost/Part | Cost of machine run time allocated to each part |
Labor Cost/Part | Cost of operator labor time allocated to each part |
Combined Multiplier | Adjustment factor for complexity, part quantity, lead time urgency, and customer ranking (if applicable) |
Step‑by‑Step Pricing Breakdown
1. Calculate Material Cost / Part
Raw material is always rounded up to the next full sheet or bar size, then divided across all parts. Subcomponent Part Quantity factors in the total needed for the job.
Material Cost/Part =
1. Determine Material Required
ROUNDUP(Part Quantity ÷ Yield) = Material Units Needed
2. Calculate Material Cost Per Part
Material Units Needed × Price Per Size ÷ Part Quantity = Material Cost/Part
Data Inputs for Material Cost/Part (click arrow to expand)
Data Inputs for Material Cost/Part (click arrow to expand)
Field Name | Entered By | Entered At | Definition/ Notes |
Material Name | Vendor | Quote (Material Section) | Material is selected from Parts Portal’s list, searchable by material, type, grade, shape, size |
Supplier | Vendor | Quote (Material Section) | Supplier is selected from your configured list. If an API is connected, pricing data can auto-populate. |
Yield | Vendor | Part Record & Quote (Material Section) | Number of parts that can be produced from one raw unit (sheet/bar). Impacts calculated quantity needed. |
Price Per Size | Vendor (or API) | Quote (Material Section) | Price for one unit of material. Auto-filled if an API is connected. |
Part Quantity | Customer | RFQ submission | Number of parts the customer is requesting. Impacts yield and material cost per part. |
2. Calculate Tooling Cost / Part
One‑time tooling costs are distributed evenly across all parts (for order only). Any recurring tooling costs are added per part. Finally, any markup from Configurations is applied.
Tooling Cost/Part =
(Recurring Cost Per Part + (Initial Cost ÷ Order Quantity)) x Tooling/Supplies Mark-up
3. Calculate Combined Multiplier
The combined multiplier accounts for part complexity, lead‑time priority, and customer‑specific adjustments.
Combined Multiplier =
Part Complexity Factor × Part Quantity Threshold Multiplier x Lead Time Multiplier × Customer Ranking
4. Calculate Setup Cost / Part
Setup includes machine prep, fixturing, first‑piece inspection, and overhead. The total setup cost is adjusted by the combined multiplier and spread across all parts.
Setup Cost/Part =
((Setup Labor Rate ÷ 60) × Setup Minutes × Combined Multiplier)) ÷ Order Quantity
5. Calculate Machine Cost / Part
Machine cost reflects the actual runtime required to produce each part, adjusted for complexity and priority.
Machine Cost/Part =
(Machine Rate ÷ 60) × Run Minutes per Part × Combined Multiplier
6. Calculate Labor Cost / Part
Labor cost captures the operator time required to produce each part, also adjusted by the combined multiplier.
Labor Cost/Part =
(Labor Rate ÷ 60) × Run Minutes per Part × Combined Multiplier
7. Final Price per Part
All calculated components are added together:
Price per Part =
Material + Tooling + Setup + Machine + Labor
Numeric Example (click arrow to expand)
Numeric Example (click arrow to expand)
Order Details
Order Quantity: 125 parts
Material: 2 full bars @ $150 each
Initial Tooling Cost: $500 (one‑time)
Recurring Tooling Cost: $0
Setup Rate: $90/hr, 45 minutes
Machine Rate: $120/hr, 5 minutes per part
Labor Rate: $60/hr, 5 minutes per part
Combined Multiplier: 1.25
Tooling/Supplies Mark-up: 1.0
Cost Breakdown
Step | Calculation | Result |
Material Cost/Part | (2 × $150) ÷ 125
| $2.40
|
Tooling Cost/Part | ($0 + ($500 ÷ 125)) x 1.0
| $4.00 |
Setup Cost/Part | [($90 ÷ 60) × 45 × 1.25] ÷ 125 | $0.56 |
Machine Cost/Part | [($120 ÷ 60) × 5 × 1.25] | $12.50 |
Labor Cost/Part | [($60 ÷ 60) × 5 × 1.25] | $6.25 |
Final Price/Part | Sum of all components | ≈ $25.71
|
💡 Tip: Pricing automatically recalculates if quantities, lead times, or complexity factors change, ensuring quotes remain accurate and consistent.