Calculation methodology

Visible assumptions.
Auditable math.

Uprate keeps the formulas understandable so manufacturing teams can challenge an assumption, replace it with real shop data, and trust what the result means.

Cycle-Time Savings

Annual hours returned = (current cycle − proposed cycle) × annual parts ÷ 60

Capacity gain is the theoretical output difference between current and proposed cycle times.
Production-hour value comes from the user and should reflect the shop's own economic model.
Returned hours are not automatically cash savings; they create value when redeployed productively.

Machine ROI

Simple payback months = investment ÷ annual value created × 12

Annual value combines time-based production value and user-entered additional savings.
The model excludes financing, taxes, depreciation, incentives, maintenance deltas, and residual value.
Use this as an initial screen before a full capital-approval analysis.

Cost per Part

Cost per delivered good part = total expected run cost ÷ required good parts

Batch quantity means good parts required. Expected starts increase to cover the entered scrap allowance.
Material and cycle-time cost apply to expected starts; setup and batch tooling apply once.
Quote target uses gross margin: cost ÷ (1 − margin). It is not a markup calculation.

Shop Rate

Target rate = floor cost per productive hour ÷ (1 − target margin)

Productive hours equal machines × available hours × utilization.
Overhead is spread across productive machine hours and direct labor is then added.
The result is an operating estimate, not a replacement for detailed cost accounting.

Capacity Planner

Weekly capacity = scheduled hours × efficiency × 60 ÷ cycle time

Efficiency is a practical combined allowance for uptime, speed loss, and other production loss.
One part per cycle is assumed unless the entered cycle already represents multi-part output.
The demand-load percentage compares weekly demand with effective weekly capacity.

Important

Uprate calculations are planning estimates. Validate inputs against actual routing, uptime, quality, labor, tooling, financing, and customer requirements before quoting work or approving an equipment investment.