ROI & Investment Calculator

ROI & Investment Calculator | Reference

What this calculates, and who it's for

This tool works out payback period, break-even volume and return on investment for a mould/tooling investment | either as a new product you'll sell, or as a Make-vs-Buy decision against your current outsourced part price. For founders and finance/commercial teams deciding whether to approve a tooling programme, and OEM teams comparing owning tooling versus buying finished parts.

Required inputs

• Mould Cost (from the Mould Cost Calculator, or your own quote) and any Other Upfront Cost
• Cost/Part (from the Part Cost Calculator) and Monthly Fixed Cost, if any
• Selling Price (Sell Product mode) or current Buy Price (Make vs Buy mode), and expected monthly volume
• Optional: Guaranteed Shots, Cavities and Good-Part Yield, for a mould-life sufficiency check

How the calculation works

Unit Contribution/Saving = Price − Cost. Monthly Operating Profit = Volume × Unit Margin − Monthly Fixed Cost. Annual Operating ROI = (Monthly Operating Profit × 12) ÷ Total Investment | a steady-state annual return rate. Simple Payback = Total Investment ÷ Monthly Operating Profit. Operating Break-even Volume = Monthly Fixed Cost ÷ Unit Margin. Net Return and Cumulative ROI over your selected horizon subtract the investment first, so they stay negative until payback | a different lens from Annual Operating ROI.

Full Methodology & Limitations →

What's included / not included

• Included: Annual Operating ROI, Simple Payback, Operating Break-even Volume, Net Return/Cumulative ROI over a chosen horizon, mould-life sufficiency check, optional Investment Breakdown (Design & Development / Injection Moulding Machines / Supportive Machines)
• Not included: demand ramp-up/seasonality, price erosion, cost inflation, working capital, financing cost, discounting/NPV, mould maintenance or replacement cost beyond the life check

Worked example

A representative Sell-Product scenario | shown here as a worked illustration, not a specific customer's figures.

FAQ

Why do I see two different "ROI" numbers?

Annual Operating ROI is a steady-state annual return rate and doesn't assume your capital is recovered first, so it can look healthy even in year one. Cumulative ROI over your selected horizon subtracts the full investment, so it stays negative until payback | both are correct, they answer different questions.

What's the difference between Operating Break-even Volume and Simple Payback?

Operating Break-even Volume (units/month) is just what's needed to cover your Monthly Fixed Cost | it says nothing about recovering the mould investment. Simple Payback (months) is when the investment itself is fully recovered at your entered volume.

Can I break the investment into categories like Design & Development or Machines?

Yes | click "Add Design & Development / Machines breakdown" in Section 1 to split Total Investment into Mould Cost, Design & Development, Injection Moulding Machines and Supportive Machines, matching the categories used in commercial ROI proposals.

Related calculators

Mould Cost Calculator → Part Cost & SKU Calculator →