Calculating ROI for Metal 3D Printers: A Practical Guide

While metal 3D printing is often hyped, the real decision to purchase one hinges on its potential value to your business. This guide explains how to assess ROI and determine the payback period for a metal 3D printer.

How to Calculate Financial ROI

Financial ROI estimates how long it will take for a new machine to generate enough value to cover its acquisition costs.

1. Start with acquisition costs. These include:

• The purchase price of the machine.
• Facility upgrades.
• Shipping and installation fees.
• Warranty, maintenance, and part replacement costs.
• Employee training expenses.

Depending on your setup and printer choice, acquisition can range from $150,000 to over $1 million.

2. Calculate average operating cost savings per unit time. Compare your current process and average the results over time.

• Select a typical part you would print.
• Obtain a quote from a 3D printer OEM for that part.
• Estimate the cost of producing the same part with traditional methods at your normal volume.
• Subtract the 3D printing cost from the traditional cost to get savings per part. Divide by the fabrication time to get savings per unit time.

• Divide the total machine cost by the savings per unit time to find the payback period.

Example: Direct ROI (Shukla Medical)

Shukla Medical projected a Markforged Metal X would pay for itself in under two years by in‑sourcing prototyping.

• Acquisition Costs: $150 k–$175 k total, covering the system, installation, warranty, and minor facility changes.
• Cost Savings: Replacing overseas prototyping with on‑prem printing saved ~$1,000 per prototype at ~10 units/month, translating to ~$10 k/month.
• ROI: With these figures, the machine reached payback in roughly 18 months, and the company discovered additional value drivers.

Indirect ROI

While financial ROI provides a solid purchase case, metal 3D printing offers broader benefits that aren't captured by part cost alone.

Beyond Direct Savings:

• Reduced lead times: Faster iteration speeds product-to-market cycles.
• Lower labor: 3D printing cuts CAM programming, operator, and engineering drawing time.
• In‑sourcing control: Eliminates outsourcing uncertainty and grants flexibility for one‑off parts.
• New fabrication capabilities: Enables high‑performance designs impossible with traditional methods.

Identify how these advantages apply to your operations and combine them with your financial ROI to build a comprehensive value case.

Example: Indirect ROI (Shukla Medical)

Beyond the direct financial case, Shukla’s R&D benefited from:

• Decreased Lead Times: Engineers received parts faster, enabling quicker iterations and market entry.
• In‑Sourcing Advantage: Greater control over production schedules and the freedom to explore innovative parts.