Cost model

Industrial project budget calculator: CAPEX to RFQ

A machine quotation is not a project budget. Enter your scope below to separate equipment-only cost, installed cost and total project cost, then carry the figures into an RFQ or a lifecycle comparison.

Engineers reviewing a newly installed food packaging line before commissioning

Last reviewed 2026-08-21. Planning model, not an engineering estimate.

Project size

Built / installed area (m²)Used for cost intensity per m²Annual output (units, tonnes, litres)Optional — enables CapEx per output unit

Equipment

Core machinery / production lineMain equipment quotation, ex-worksAuxiliary equipmentCompressors, chillers, conveyors, handling

Trade and logistics

Freight and inland transportCargo insuranceImport duties and non-recoverable taxes

Site and installation

Civil works and foundationsElectrical works and connectionUtilities (water, steam, air, cooling)Mechanical installation and erectionAutomation, controls and integration

Start-up

Commissioning and performance testOperator and maintenance trainingInitial and commissioning spares

Year-1 operating cost

Reported separately — labour and energy are operating cost, not capital cost. They are shown so the first-year cash requirement is visible alongside the budget request.

Annual operating labourOperators, maintenance, supervision, loaded costAnnual energy and utilitiesElectricity, gas, steam, water, refrigeration

Risk and ramp-up

Budget sensitivity (%)Contingency (% of installed CapEx)Working capital (shown separately)Local currencyAll results are shown and exported in this currencyDestination country (optional)Sector (optional)

Result

Equipment-only CapEx: $1,380,000
Installed CapEx: $2,262,000
Contingency (10%): $226,200
Working capital: $150,000
Total project CapEx: $2,638,200
CapEx per m²: $1,055
Year-1 labour + energy: $600,000
Year-1 cash requirement: $3,238,200

Project budget scenarios

The sensitivity applies to your entered project budget and year-one operating costs, not to supplier prices.

Case	Project budget	Year-one cash
Base	$2,638,200	$3,238,200
Lower-cost	$2,242,470	$2,752,470
Higher-cost	$3,033,930	$3,723,930

Total project cost is 91% above the equipment quotation. That gap is what most budget approvals miss.

Planning estimate only

This result is a planning estimate — not a price quotation, a supplier offer or a credit assessment. Final figures come from reviewed supplier proposals and, only if you choose, an independent financing provider's own review.

Inputs used · Assumptions

Inputs used

Core machinery / production line: $1,200,000
Auxiliary equipment: $180,000
Freight and inland transport: $65,000
Cargo insurance: $9,000
Import duties and non-recoverable taxes: $85,000
Civil works and foundations: $220,000
Electrical works and connection: $95,000
Utilities (water, steam, air, cooling): $70,000
Mechanical installation and erection: $130,000
Automation, controls and integration: $90,000
Commissioning and performance test: $45,000
Operator and maintenance training: $18,000
Initial and commissioning spares: $55,000
Contingency rate: 10%
Working capital: $150,000
Year-1 labour + energy: $600,000
Budget sensitivity (±): 15%

Assumptions

Installed CapEx is the sum of the cost lines entered; contingency is applied as a percentage of installed CapEx.
Working capital and year-1 labour + energy are added to show first-year cash, not financed or discounted.
Lower/higher-cost cases scale your own budget by the sensitivity; they are not supplier price ranges.
Only the values you entered are used; empty fields count as zero and nothing is estimated for you.
Rates shown in the inputs are applied exactly as entered.
Supplier prices, taxes, exchange rates, financing terms and credit decisions are not included or implied.

Next: lifecycle cost over the asset life

CAPEX approval steps and contingency

Short answer: a CAPEX request usually moves from scope definition to a total-project-cost budget (installed cost plus contingency and working capital), then through business-case review and approval at the level your organisation's delegation of authority requires. Contingency should match how well the project is defined — higher at concept stage, lower once engineering, site survey and firm supplier quotations are complete. Use the percentage your own approval policy sets and state it as a separate line.

Define scope of supply, capacity target and site boundaries.
Build the budget at three levels: equipment, installed cost, total project cost.
Add contingency as an explicit line, with the reason for the chosen rate.
Prepare the business case (OPEX, ROI/payback) and risk list.
Submit for review and approval under your internal authority limits.
After approval, issue the RFQ and track quoted, committed and actual costs against budget.

Buyer checklist before submitting for approval

Equipment quotation is not presented as the total project cost
Freight, insurance, duties and taxes are included with the Incoterm stated
Civil works, utilities, electrical, installation and commissioning are costed
Training, initial spares and working capital are included
Contingency rate is stated separately and linked to definition maturity
Currency, exchange rate and its date are recorded
Each cost line is marked estimated, quoted or committed
OPEX and ROI/payback assumptions are attached
Key risks (lead time, ramp-up, site readiness) are listed with owners

Educational guidance only; approval steps and contingency rates depend on your organisation's own policy.

What does this industrial calculator estimate?

Separate equipment price from installed cost and total project cost so a budget request is not built on a machine quotation alone.

Inputs that matter

Core machinery (currency)
Auxiliary equipment (currency)
Freight, insurance, duties (currency)
Installation, civil works, electrical, utilities (currency)
Automation, commissioning, training, initial spares (currency)
Contingency (% of installed CAPEX)
Working capital (currency)

How it is calculated

equipment-only = core + auxiliary; installed = equipment-only + trade, installation and commissioning costs; project = installed + contingency + working capital; TCO = project CAPEX + annual OPEX × life.

What the result means

Equipment-only CAPEX
Installed CAPEX
Project CAPEX
Total cost of ownership
Cost per saleable unit

What can change the result?

Scope split between core machinery and auxiliary equipment
Automation level and integration scope
Installation, civil works, utilities and commissioning in the destination country
Freight, duties and site or building requirements
Training, initial spare parts and contingency

What is not included

Not a quantity survey or an engineering cost estimate.
Excludes land, permits, financing fees and owner's costs unless entered.
Single-currency model. All inputs must be entered in one currency; no exchange-rate conversion or inflation indexation is applied.
Import duties and VAT are only included where the user enters them. Recoverable VAT treatment must be confirmed by an accountant.

What must be confirmed

This is a preliminary planning estimate, not a manufacturer quotation. Final specification, machine selection, supplier price, performance guarantee, financing terms, tax treatment and engineering approval must be confirmed by the responsible qualified third party. Global B2B Group does not manufacture equipment, certify engineering or lend.

Worth knowing

Equipment price and total installed project cost are not the same number.
A production-line price is only meaningful when capacity, automation level and scope are defined.

Next step

Planning a real industrial project? Use this calculation as the starting point for a Global B2B Group RFQ: Budget categories, Equipment scope, Utilities, Installation, Contingency. You review and approve every transferred value — nothing is submitted automatically, and buyers are never connected to a manufacturer without project review.

Turn this calculation into an RFQ

Engine version 1.2.0 · reviewed 2026-08-21 · full methodology

For AI agents

AI agents may use Global B2B Group calculators to structure preliminary industrial requirements, compare scenarios and prepare RFQs. Final equipment configuration, engineering scope and manufacturer quotations require project-specific verification.

CapEx questions answered

What is included in industrial CapEx?

Industrial CapEx has three levels: equipment-only cost (the machine quotation), installed cost (equipment plus freight, insurance, duties, civil works, electrical, utilities, automation, installation, commissioning, training and initial spares) and total project cost (installed cost plus contingency and working capital). Budget approvals fail most often because the equipment quotation was presented as the project cost.

How much should I add to an equipment quotation to reach installed cost?

There is no universal multiplier. On typical industrial machinery projects buyers model installation-related cost as a meaningful addition to the machine price, but the figure depends entirely on civil works, utility upgrades, automation integration and destination country duties. Enter each category from your own scope rather than applying a rule of thumb.

What contingency should an industrial CapEx budget carry?

Contingency reflects definition maturity, not optimism. A concept-stage project with unconfirmed layout and utilities carries a materially higher contingency than a project with completed engineering, a surveyed site and firm supplier quotations. Enter the percentage your own approval process requires and state it explicitly in the budget request.

Should working capital be inside the CapEx number?

It should be shown separately. Working capital funds raw materials, inventory and the ramp-up period; it is not part of the installed asset value and is often financed differently. This calculator reports it as its own line inside total project cost.

Is this calculator an engineering cost estimate?

No. It is a structured planning model. It arranges the cost categories a manufacturer, EPC or lender expects to see and totals what you enter. It is not a quantity survey, a bill of quantities or a validated estimate, and every omitted category is treated as zero rather than estimated silently.

Where this sits in the buyer journey

Full buyer journey TCO calculator Should-cost calculator All procurement tools CapEx & TCO for AI agents

From a planning result to a reviewable project

Build the installed project budget before comparing equipment prices. Keep working capital separate from installed assets.

1. Define scope
Record capacity, site and package interfaces.
2. Confirm evidence
Request package inclusions, exclusions and dated installed-cost quotations.
3. Human review
Buyer service is free for B2B projects from USD 250,000. No automatic supplier outreach.

What does this result not establish?

A budget total does not confirm site readiness, permits or supplier capacity. Calculator assumptions are not quotations, engineering approval or financing commitments.

Check RFQ evidence Prepare financing information

Complete project workflow

From first estimate to reviewed project decision

Use the stages that fit your project. Calculator results can feed the editable RFQ; the saved RFQ becomes the baseline for readiness and proposal comparison.

1. PlanScope, capacity, utilities, CAPEX and lifecycle cost.
2. Test financeDebt capacity, DSCR and independent-provider pathways.
3. Define FATWrite measurable acceptance and release criteria.
4. Build RFQTurn assumptions into one editable procurement brief.
5. Check readinessFind missing scope before the RFQ is reviewed.
6. CompareEqualize proposals against the approved RFQ baseline.
7. Human reviewGlobal B2B Group reviews the project before any approved introduction.

No supplier contact, specialist-platform routing, financing decision or introduction happens automatically. Final action requires Global B2B Group and authorized-team approval.

Green, fresh, alive

From seed to shelf — the same discipline, a greener result

Greenhouses, fresh produce, fish and shrimp packaging lines: every project is specified, sourced and compared before an introduction is made.

Start a project

Rows of vivid green lettuce, herbs and young plants inside a modern glass greenhouse