About QIGO

Payback ROI Calculator

You can contact us if you want to know Payback on custom workpiece laser cutting.
  • Currency:
  • Power :
    Output:
  • Metal Type:

  • @Select majority metal type
  • Metal Thick:
  • (mm)
    @90% proportion thick cutting
  • Outsourcing Cost
    /Month
  • $
    Material+Fabricating
  • Electricity:
  • $ (kWh)
    @Local electricity cost
  • Working Time:
  • Hours
    Working time in a day

Result as below:

  • Cost:
  • $(Hourly)
    Electricity,rent,depreciation+
  • Fabricating Profit:
  • $(Monthly)
    Estimated gross profit
  • Hourly Net Profit:
  • $
    60 min
  • Dayly Net Profit:
  • $
    8 hours a day
  • Monthly Net Profit:
  • $
    26 days a month
  • Yearly Net Profit:
  • $
    11 month a year
  • Payback Period

  • Year

Average Profitability Of Laser Cutting Machine

  • Watts
  • Profitability Daily
  • Payback Year
  • 0-1500
  • $22 to $30/hourly
  • 1-2
  • 2000-3000
  • $30 to $45/hourly
  • 1-2
  • 4000-5000
  • $44 to $75/hourly
  • 1-2

2 Year Return On Investment(ROI) On Laser Cutting Machine

2 year is investment return period of laser cutting machine that we calculated and recommend.our experiences show that the average profit of metal cutting/fabricating are between 50%-60%, For example,if your fabricating are outsourcing, high possibility you need to pay $10.000 per Month, But you can save half of the cost ($5,000 per month) if your buy the laser cutting machine and fabricating by yourself,therefore,you can save $50,000 all the year round,therefore your payback period will be 1-2 year on the premise of select the suitable power and accessories.Let's talk about how to select the cutting machine in stories.

Principle of Analysis of Profitability On Laser Cutting Machine

When we do customer investment and cost analysis. the premise is that our client that is going to purchase laser cutting machine will be deal with outsourcing work from others.we need to show you how we charge with fabricating from end-users,You should pay more attention to output daily of fabrication, If you work one hour/day, you can only earn $44 an hour and$13,100 a year, But the cost of a solid 2000-watt machine will be $100,000 at least.in others words. It may need 9 years for you to return your investment.but If you can work 5 hours a day, High possibility you will be payback in 1 year. This is very suitable. So the more time you running machine the sooner payback you will get. The machine will help you to make money after payback in 8-15 years.in general. The average profitability of 1500 watts laser cutting machine should be from $22/hourly to $30/hourly and $30 to $45 for 2000 to 3000 watts in China

How to Calculator Investment Return Period Online?

There are 2 calculation methods,One is simple and the other is complex.

Payback Formula 1:Payback Years= Cost of machine/Your Fabricating cost

for example.If the thickness of metal is 10mm,Fabricating cost of your is $30000(material+fabricating),It is not suitable because high possibility you need 10 years to return the investment only if the cost of machine is $100000 .$30000*60%=18000(60% means we want the net fabricating cost only) and so forth you can have payback in 2 years if fabricating cost is $50000

What is your pure outsourcing fabricating cost per month?

It is one of the factors that help us to calculate your investment return period.Because the laser cutting machine is a blanking equipment.therefore,What we want to know is the blanking cost that material cutting into the shape you want, in other words what is the pure cutting cost.Why we need to know your outsourcing fabricating cost?If you need to pay a hundred thousand tens dollars of fabricating cost per month, it is suitable for buying laser cutting machine. the cost of the material belt,folded can not be counted.
What if I don't know cutting cost?
if you do not know the cutting (blanking)cost.processing cost by divided by two is equal to fabricating cost,fabricating cost will be about half of the cutting cost.for example. if you need to pay $100,000 processing cost per month. So the fabricating cost will be about $50,000 per month.this means that you buy the laser cutting machine and fabricating by yourself.So how much can I save? The laser cutting 's average rate of profit is between 50% to 60%. What does that mean? At least you can earn me $25,000 to $30,000. If the thickness of the metal sheet is between 4 and 6, the basic 1000 watts can meet your requirements, is this investment return rate appropriate? I can return my investment of laser cutting machine in a year. This is cost-effective. Why should we ask our customer about the original fabricating method? We want to calculate the ROI period, we hope that our customers' payback period will be within two years,because the lifetime of laser cutting machine is 80000 hours or 10 years, If we return the cost of two years, does that mean I am making money in the remaining 6 to 8 years ?

Payback Formula2:Payback Years= Workpiece Fabricating Income-Payout

Workpiece Payback is Fabricating cost you charge with client minus operating costs(Electricity,Rent and equipment weaken cost).So here is the formula for your reference.

INCOME
1.Fabricating fee/Workpiece (excluding material) = thickness * $0.12 (Cutting cost/meter)* cutting length + thickness * $0.15(Piercing cost/pcs) * quantity of Piercing.

2.Workpiece Producing Time:0.6*( Workpiece producing Time(hourly) + Piercing time+1(1 is laser header moving time)

3.Workpiece Output=3600 seconds / Workpiece producing time

PAYOUT

Operating cost = machines Electricity fee +consumables+Rent+Salary+Equipment depreciation.

My cost of 1000 watts machines 's electricity will not beyond 15.5 k/wh, Here is the simplest way to calculate the operating cost, the electricity Multiply by three is the totally cost of labor costs, rent costs, equipment depreciation, all part of it here

Electricity fee: 1000 kW machine and air compressor 's electricity is 15 in full load of an hour, consumables cost will be around $0.15

Labor costs: The metering fee for employees of cutting is about $0.73 per 100 meter.

Does metal sheet cutting will be make more money than pipe cutting?

The speed of tube cutting is usually half of the sheet cutting.e.g we can run 14 meters on 1mm carbon steel,but the cutting speed of pipe is 7 meters only.. even more ,we can not quicken the speed because of impermeable on the turning of pipe.We can only run low speed on the corner to make sure it is standard cutting.Therefore, the profit of cutting pipe is definitely not as high as that of the metal sheet even if you charge more from client, but your efficiency has decreases sharply, so the profit of cutting tube/pipe is definitely not as high as that of the sheet cutting.

Does thin metal make more money than thick?

thin metal earns more than thick,here is example.There are 4 Piercing quantity, cutting length is 400 mms,1 mm thick metal, profit is $61 per hour, 8 mm thick metal, profit will be $32 per hour

Does power attenuation of stainless steel cutting be more than carton steel?

The machine which was used for stainless steel cutting will be 20% loss than the carbon steel. Let me tell you a story. There are 2 sets of 500 Watts laser cutting machine we sold to our client in shantou of China. The purchasing time of them is 5-6 months. Becuase they fabrication method aimed at different market .So one of machine is used for cutting stainless steel and the other is used for carbon steel, after 3 years of cutting.The machine which was used for stainless steel cutting is only 380 watts left and the other is 450 watts. It is power weaken or attenuation we want to tell you.

What was your fabricating method?

Every fabricating method has its own merits and demerits. One should never think that it is perfect while others are all goods for nothing.The frequently used blanking machines are Cutting Plate Machine ,Punch cutting machine,plasma cutting machine,wire cutting,water cutting,Co2 cutting.