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Machine ROI & Payback Calculator

Find out whether bringing tube bending, laser cutting or sawing in-house pays off. Compare your outsourced price with in-house cost and see payback and 5-year ROI.

Your numbers

Running cost covers maintenance, power, consumables and tooling wear.

Payback

In-house cost per part–
Saving per part–
Annual savings–
Payback–
5-year ROI–
Machine hours needed–

Simple payback before tax, financing and depreciation. Leasing instead? Compare the monthly saving with a payment from the equipment lease calculator.

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How the ROI is calculated

  • In-house cost per part = (material + labor + running cost per part) ÷ (1 − scrap rate)
  • Labor per part = cycle time ÷ 3,600 × labor rate
  • Annual savings = (current price − in-house cost) × parts per year
  • Payback = investment ÷ annual savings; 5-year ROI = (5 × annual savings − investment) ÷ investment

Not sure of your cycle time? Send us a part print and we can run a cycle time study on a CNC tube bender, tube laser or tube saw.

Frequently Asked Questions

How do I calculate the payback period on a machine?

Divide the total investment by the annual savings. If a $250,000 machine saves $125,000 a year, payback is 2 years, or 24 months.

What should I include in the machine investment?

Include the machine, tooling, freight, rigging, installation and training. Use the same number you would finance.

Should I bring tube bending in-house?

It usually makes sense when you have steady volumes, long lead times or quality problems with your supplier, or when bending is holding up assembly. The calculator shows whether the numbers work; also consider floor space, operators and the parts you could quote once the machine is in.

What cycle time should I use?

Use the time per part including loading and unloading. For CNC tube bending a simple part may take 15 to 30 seconds and a complex multi-bend part a minute or more. We can estimate it from your part print.

Want a cycle time study on your part?

Send us your part print and volumes. We will recommend a machine and help you build the business case.

Send a part print