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ECONOMICS

Cost Breakdown Calculator

Break down the production cost of an injection-molded part into components: material, machine, labor, overhead, and profit margin. The calculator determines the unit cost and selling price — key data for quoting and cost optimization.

EconomicsCalculation

Input Parameters

g
EUR/kg
s
EUR/h
EUR/h
%
%
%

Results

Fill in the data and click Calculate

One Tool Instead of Five

ARGUS optimizes production costs in real time

Unit cost is the result of many parameters — ARGUS monitors them together and identifies the most effective optimization paths.

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Calculation Formula

How do we calculate the cost of an injection-molded part?

The unit cost of an injection-molded part consists of direct costs (material, machine, labor) and indirect costs (overhead, plant general expenses). Material typically accounts for 40–70% of the unit cost, making it the primary area for optimization. Machine costs depend on cycle time and the machine hourly rate.

The calculator applies a full cost breakdown with component-level detail and profit margin included.

Cmat = m × Pmat / 1000 × (1 + rejects/100)
Cmach = tcycle × Rmach / 3600
Clabor = tcycle × Rlabor / 3600
Ctotal = (Cmat + Cmach + Clabor) × (1 + overhead/100)
Price = Ctotal × (1 + margin/100)

The reject rate increases the effective material cost — every rejected part is wasted material and machine time. Reducing rejects from 5% to 2% can lower the unit cost by 3–5%. Overhead covers facility depreciation, administration, energy, and maintenance — typically 20–40% of direct costs.

Practical Application

Cost Reduction Strategies

Most effective strategies for optimizing unit cost:

Weight reduction — less material = lower material cost (40–70% of cost)
Cycle time reduction — lower machine cost, higher output
Multi-cavity mold — spreads machine cost across more parts
Reject reduction — lower effective material and machine cost
Material substitution — cheaper material with adequate properties

Sensitivity analysis helps identify which parameter has the greatest impact on cost. For heavy parts (>100 g) material cost dominates. For light parts (<10 g) with long cycles machine cost dominates. ARGUS automatically identifies the dominant cost component and suggests optimization.

Tips

Customer Quoting

When quoting, include: unit cost + mold amortization per part + logistics + margin. For small batches (1,000–10,000 pcs) mold amortization may dominate the total cost. Use the Mold Amortization calculator to determine that component.

In the ARGUS System

ARGUS optimizes production costs by combining all process parameters into a single economic model

See for yourself — book a presentation and explore the cost analysis in ARGUS.

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