Separate purchase price from usable life
Estimate the cost of the tool, its expected working life, maintenance, and likely replacement value. The goal is a practical recovery amount, not perfect accounting precision.
Allocate cost to productive use
Tools that support paid work should be reflected in the shop rate, machine rate, or job cost. The method matters less than using one consistently.
Review after major changes
A new machine, increased workload, or expensive maintenance event is a reason to update the assumptions. Equipment costs evolve with the shop.
Shop 101
Turn this guide into a tested shop decision.
You leave with one documented input, one controlled result, and one clearer next action.
- Name the material, dimension, or cost input that affects the decision.
- Use the guide and calculator to make the assumption visible.
- Test or compare the result before committing final material, time, or client scope.
Related tools & lessons
Common questions
Why include tool depreciation in a quote?
It helps the business recover the long-term cost of the equipment required to produce paid work instead of treating replacement as a surprise.
Is tool depreciation the same as maintenance?
No. Depreciation is the planned recovery of equipment value over time; maintenance and repairs are additional operating costs that also need a pricing home.
Should small hand tools be included?
For many shops, small tools and consumables are easiest to recover through the general shop rate or overhead rather than being itemized on every quote.