{
  "slug": "injection-mold-amortization",
  "title": "Injection Mold Amortization Calculator",
  "heading": "Injection Mold Tooling Amortization Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/injection-mold-amortization",
  "summary": "Spread mold tooling cost per part across expected production volume.",
  "description": "Injection mold tooling is a large upfront capital cost — often $10,000 to $150,000+ depending on cavitation, complexity, and steel type — that has to be recovered somewhere in the piece price or billed separately to the customer. Amortizing it per part means dividing the tool cost across the expected lifetime production volume, but the tricky part is choosing a realistic volume: overestimate it and you underprice the part and never fully recover tooling cost if the program ends early; underestimate it and you're overpriced against a competitor amortizing over more parts. This calculator also factors in expected mold life in shots versus your program's expected volume, since some molds wear out (especially unhardened aluminum prototype tools) before the program volume is reached, requiring a second tool purchase mid-program that resets the amortization math.",
  "formula": "Amortized Tooling Cost per Part = Tool Cost ÷ Amortization Volume. Piece Price = Material + Process Cost + Amortized Tooling + Margin.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=injection-mold-amortization",
  "inputs": [
    {
      "id": "toolCost",
      "label": "Total mold/tool cost",
      "kind": "number",
      "hint": null,
      "default": 45000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "amortVolume",
      "label": "Amortization volume (parts)",
      "kind": "number",
      "hint": null,
      "default": 200000,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "moldLifeShots",
      "label": "Expected mold life",
      "kind": "number",
      "hint": null,
      "default": 500000,
      "unit": "shots",
      "min": 1,
      "max": null
    },
    {
      "id": "processCost",
      "label": "Material + process cost per part",
      "kind": "number",
      "hint": null,
      "default": 1.85,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "margin",
      "label": "Target margin",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": "%",
      "min": 0,
      "max": 90
    }
  ],
  "outputs": [
    {
      "id": "piecePrice",
      "label": "Piece price (with margin)",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "perPartTooling",
      "label": "Amortized tooling cost per part",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "baseCost",
      "label": "Base cost per part (no margin)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "willSurviveVolume",
      "label": "Mold rated to survive full volume (1=yes)",
      "format": "number",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Total mold/tool cost: 45000 $",
      "Amortization volume (parts): 200000",
      "Expected mold life: 500000 shots",
      "Material + process cost per part: 1.85 $",
      "Target margin: 20 %"
    ],
    "outputs": [
      "Piece price (with margin): $2.594",
      "Amortized tooling cost per part: $0.225",
      "Base cost per part (no margin): $2.075",
      "Mold rated to survive full volume (1=yes): 1"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter total mold/tool cost ($).",
      "Enter amortization volume (parts).",
      "Enter expected mold life (shots).",
      "Enter material + process cost per part ($).",
      "Enter target margin (%).",
      "Read your piece price (with margin) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "toolCost": 27000,
        "amortVolume": 120000,
        "moldLifeShots": 300000,
        "processCost": 1.11,
        "margin": 12
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "toolCost": 45000,
        "amortVolume": 200000,
        "moldLifeShots": 500000,
        "processCost": 1.85,
        "margin": 20
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "toolCost": 72000,
        "amortVolume": 320000,
        "moldLifeShots": 800000,
        "processCost": 2.9600000000000004,
        "margin": 32
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Should I bill the customer for tooling separately or amortize it into piece price?",
      "a": "Billing separately (a one-time tooling charge) protects you if the program is cancelled early or volumes don't materialize — you've already recovered the capital. Amortizing into piece price is more common when the customer wants a lower upfront cost and is confident in volume; it shifts the risk of low volume onto you as the molder."
    },
    {
      "q": "What amortization volume should I use if the forecast is uncertain?",
      "a": "Use a conservative volume — often the first 1-2 years of forecasted demand rather than the full program lifetime — so you recover tooling cost faster and aren't exposed if the program underperforms. You can always adjust piece price down later if volumes exceed plan."
    },
    {
      "q": "What happens if the mold wears out before amortization volume is reached?",
      "a": "You'll need a second tool, and that cost has to be recovered too — either through renegotiated piece price or a new tooling charge. This is common with aluminum prototype tools rated for 10,000-100,000 shots that get pushed into low-rate production runs beyond their design life."
    },
    {
      "q": "Does this account for mold maintenance costs?",
      "a": "Not directly — ongoing mold maintenance (cleaning, texture touch-up, wear part replacement) should be added to your process cost per part or tracked as a separate periodic expense, since it's real cost but isn't part of the original capital amortization."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/tooling-breakeven-quantity",
    "https://www.revenuelab.fyi/toolbox/job-shop-quote-markup"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Injection Mold Amortization Calculator (https://www.revenuelab.fyi/toolbox/injection-mold-amortization)"
}