Finance & Investment Calculators

Under IRS MACRS, most CNC machines and manufacturing equipment fall into the 7-year property class (MACRS GDS). The first-year rate for 7-year property is 14.29% of the cost basis. Year 2: 24.49%. Year 3: 17.49%. Years 4–7: declining percentages. A $100,000 CNC machine deducts $14,290 in Year 1 under standard MACRS — or up to the full $100,000 in Year 1 if you elect Section 179 expensing (subject to annual deduction limits and taxable income limitations). Use the Machinery Depreciation Calculator to generate the complete schedule for any purchase price and property class.

Landed cost = FOB price + ocean freight + customs duty + Section 301 tariff (25–30% on most machinery from China) + reciprocal tariff (20% as of early 2026) + Section 232 surcharge (if steel/aluminum content) + customs broker fee ($300–800) + inland freight. For a $50,000 CNC machine from China: FOB $50,000 + freight $3,000 + duty at MFN rate (~2%) $1,000 + Section 301 (~25%) $12,500 + reciprocal (20%) $10,000 = approximately $76,500–$80,000 total landed before broker and delivery fees. Tariff rates are stacking and changing — use the Landed Cost Calculator with current rates before placing any order.

Markup is calculated on cost: Price = Cost × (1 + markup%). A 30% markup on $100 cost = $130 sell price. Margin is calculated on price: Margin = (Price − Cost) ÷ Price. A $130 sell price with $100 cost = 23.1% gross margin — NOT 30%. This difference compounds badly at scale: a shop running 200 jobs/month at a "30% margin" that's actually 30% markup is leaving $15,000–$20,000/month in profit on the table. The Pricing & Margin Calculator converts between all four variables instantly.

Break-even units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). For a press brake with $3,500/month in fixed costs (loan + depreciation + space): if you charge $85/part and your variable cost (materials + labor) is $42/part, contribution margin = $43. Break-even = $3,500 ÷ $43 = 82 parts/month. If you can realistically run 150+ parts/month, the machine makes sense. Below 82 parts, you're losing money. The Break-Even Point Calculator shows the chart visually so you can see exactly where you cross into profit.

Most manufacturing businesses target a payback period of 2–4 years for equipment, which corresponds to an ROI of 25–50% per year before taxes. Mission-critical equipment that eliminates a production bottleneck can justify longer paybacks (5–7 years). Equipment that simply replaces an equivalent manual process should pay back in under 3 years to account for maintenance risk and technology change. Banks and SBA lenders typically want to see a debt service coverage ratio (DSCR) above 1.25 — meaning the machine's monthly revenue contribution is 1.25× the loan payment. The ROI Calculator for Machinery calculates both payback period and DSCR from your inputs.

Standard industry guidance: add 10–15% contingency on new construction, 15–20% on remodels, and 20–25% on older homes (pre-1980) where hidden issues (asbestos, knob-and-tube wiring, cast iron plumbing) are common. The contingency is not optional padding — it covers permit-required upgrades discovered mid-project, material price changes, and scope changes. The Home Renovation Budget Tracker has a contingency line built in so you can set your target percentage and track actual contingency spend separately from the base budget.