Free Engineering Calculator
Fastener Total Cost of Ownership Calculator
Total cost = units x price + units x defect rate x failure cost + admin cost. With the default numbers, a $0.05 part with 2% defects costs $76,500 a year against $12,000 for a $0.07 part with 0.1% defects. Enter your own figures below.
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Understanding the TCO Model
At Component Solutions Group, we look beyond the piece price. In the fastener industry, the invoice price of a component typically represents only about 15% of the total cost (the 15/85 rule, as published by Bossard). The remaining 85% is hidden in logistics, quality control, assembly time, and inventory management.
Our TCO approach identifies “soft cost” leakage and converts them into hard savings through optimized supply chain solutions and engineering support.
The 15/85 Rule
15% Visible: Purchase Price
85% Hidden: Procurement, Receiving, Inspection, Storage, In-place assembly, and Overhead.
Compare Two Suppliers on Total Cost
Use the utility below to convert technical specifications for your TCO analysis. Accurate data entry ensures the integrity of your cost modeling.
Total Cost of Ownership
Calculate the true impact of supplier quality on your bottom line.
Supplier A Total Annual Cost
Supplier B Total Annual Cost
Potential Annual Savings
$0
*Analysis includes purchase price, quality risk impact, and administrative burden.
How to Use the Fastener TCO Calculator
- Enter your annual consumption in units.
- Enter each supplier’s unit price.
- Enter each supplier’s defect rate in percent, from your incoming inspection or line data.
- Enter what one defective part costs you when it is found (sorting, rework, downtime, scrap).
- Enter the annual admin overhead and read each supplier’s total and the saving.
Formula and Worked Example
For each supplier: Total = Q x Price + Q x Defect rate x Failure cost + Admin. Admin is the same figure for both suppliers in this tool, so it does not change the saving.
| 100,000 units a year | Supplier A | Supplier B |
|---|---|---|
| Unit price | $0.050 | $0.070 |
| Purchase cost | $5,000 | $7,000 |
| Defect rate | 2.0% | 0.1% |
| Quality cost at $35 per failure | $70,000 | $3,500 |
| Admin | $1,500 | $1,500 |
| Total annual cost | $76,500 | $12,000 |
| Cost per unit | $0.765 | $0.120 |
The cheaper part costs $64,500 more a year. The failure cost drives the result, so use a real figure from your own sorting, rework or line-stop records.
TCO Cost Drivers
| Cost Category | Description | CSG Impact |
|---|---|---|
| Procurement | PO processing, sourcing, and vendor management. | Consolidated vendor base. |
| Inventory | Carrying costs, obsolescence, and floor space. | VMI & JIT delivery programs. |
| Quality | Rework, sorting, and line shutdowns. | Zero-defect quality assurance. |
| Assembly | In-place installation time and tool wear. | Value-added engineering. |
Frequently Asked Questions
What is total cost of ownership for fasteners?
Everything a part costs you, not just its price: purchasing, inventory, quality failures, rework, line downtime and admin. For C-parts the price is often the smallest share.
How do I estimate failure cost?
Add up what a bad part costs when it is found: inspection and sorting labor, rework, scrap, expedited replacement and any line stop, then divide by the number of bad parts.
Why is admin cost the same for both suppliers?
The tool treats admin as fixed so the comparison focuses on price and quality. If one supplier needs more POs or more inspection, add that difference to its failure cost.
What defect rate is realistic?
It varies widely. Controlled suppliers with PPAP and incoming inspection often run well under 0.1%; uncontrolled sources can run several percent. Use your own receiving data where you have it.
Next Steps
- Cost Savings Calculator: procurement, inventory and quality savings
- Fastener Selector: find the right fastener family
- Contact our engineers: review your C-parts cost
- Request a quote for the fasteners in your joint.
Related Calculators
More free tools for the same job:
- Cost Savings Calculator: Assess fastener savings through total cost of ownership.
Ready to reduce your total costs?
Our engineering team can perform a full site audit to identify specific TCO reduction opportunities in your assembly line.