Buying a laser becomes worth evaluating when the work you can realistically bring in-house produces enough savings to cover the new fixed costs. Start with comparable finished parts and repeatable demand. Machine power or the size of last month's subcontract invoice alone cannot establish the business case.
The worksheet below is a planning model for Canadian fabrication shops. The numbers are invented to explain the calculation; they are not Rise Tek pricing, customer results or a forecast of your savings.
1. Compare the same finished work
Select a repeat part or a stable basket of jobs. Record quantities, material grades, thicknesses, tolerances and finishing requirements. Use the same delivered scope on both sides. If your subcontractor supplies material and deburring, include those costs in the in-house comparison too.
Review several months of actual orders and separate recurring work from one-off projects. Identify jobs you would still outsource because of size, process requirements or capacity. Only count the work that the proposed machine and your team could reasonably take over.
2. Build the monthly break-even calculation
Contribution saved per part = comparable outsource price − in-house variable cost. Then divide incremental monthly fixed cost by contribution saved per part. The result is the monthly volume needed to cover those fixed costs under your assumptions.
| Input or result | Example |
|---|---|
| Comparable outsource price per finished part | $12.00 |
| In-house variable cost per finished part | $7.00 |
| Contribution saved per part | $5.00 |
| Incremental monthly fixed cost | $6,000 |
| Break-even volume: $6,000 ÷ $5 | 1,200 parts/month |
| At 1,500 parts: 1,500 × $5 − $6,000 | $1,500 monthly operating advantage |
This is operating break-even, not capital payback. If contribution saved is zero or negative, additional volume does not cover the fixed costs in this model. With a mixed workload, calculate the savings for each job family before adding them together.
3. Include costs that are easy to overlook
Variable costs can include sheet consumption after nesting and scrap, assist gas, electricity, consumables, directly attributable labour, inspection, finishing and expected rework. State how scrap credit is treated. Use trial-job measurements or supplier evidence instead of assuming that cutting time equals labour time.
Fixed costs should reflect costs added by the decision: for example, a new staffing commitment, maintenance provision, software subscription or additional occupied space. Classify each cost once. Labour may be fixed, variable or a combination depending on how the work is staffed.
Keep the capital decision explicit. List purchase, freight, installation, supporting equipment and working-capital needs separately. For a cash-flow view, include financing payments where appropriate and do not also subtract the same purchase as a monthly expense. For capital payback, use a consistent investment and cash-flow basis with your accountant.
4. Test the workload before trusting the result
| Monthly quantity | Operating advantage / shortfall |
|---|---|
| 900 parts | −$1,500 |
| 1,200 parts | $0 |
| 1,500 parts | $1,500 |
Also test a higher variable cost and a slower production cycle. At $8 variable cost instead of $7, the contribution becomes $4 and break-even rises to 1,500 parts. This simple change can matter more than a headline maximum cutting speed.
Check capacity separately: can the available staffed hours produce the required finished quantity after setup, maintenance, handling and downstream work? A positive spreadsheet result is not achievable if bending, deburring or material handling prevents the jobs from shipping.
5. Keep outsourcing in the comparison
Ownership may improve scheduling control, but continuing to outsource can remain sensible for uncertain demand, specialist work or peaks beyond internal capacity. A hybrid approach can bring repeat jobs in-house while retaining a subcontractor for overflow. Put a value on shorter lead times only when you can explain how that value becomes a real business benefit.
Download the blank CSV worksheet and replace the example with your own records. The worksheet contains prompts rather than automatic calculations. Pair it with the quote-comparison checklist and machine-cost guide.
Is this a return-on-investment forecast?
No. It is a simplified operating comparison. Validate capital costs, financing, taxes, timing and business-specific assumptions separately before making an investment decision.