Equipment Cost Scaling: Worked Example

Expected answer
$151,571.66 per unit · $303,143.31 total

Use a hypothetical purchased-equipment price of $100,000 for a 1,000-US-gallon unit to estimate two comparable 2,000-US-gallon units at the same price date. This is a mathematical benchmark, not a market quote.

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1. Calculator Inputs

Select the units below before entering the numbers. These are fixed benchmark inputs for checking the calculator.

Calculator fieldValueUnit / setting
Reference cost, C₁100,000USD
Reference cost basisPurchased equipment cost
Sizing parameterVolume
Reference size, Q₁1,000US gal
Target size per unit, Q₂2,000US gal
Number of identical target units2
Exponent methodSix-tenths rule · n = 0.60
Adjust for price date using cost indicesDisabled

2. Step-by-step Math

Calculate the per-unit size ratio

r = Q₂/Q₁ = 2,000 / 1,000 = 2

Both sizes use US gallons, so the unit cancels. The target size is 2,000 gallons per unit; quantity is handled separately.

Apply the assumed exponent

C₂ = C₁ × (Q₂/Q₁)^n
Scale factor = 2^0.60 ≈ 1.52
C₂ = $100,000 × 1.515716566510
C₂ = $151,571.656651 per unit

The 0.60 exponent is a screening assumption. It is not a validated equipment-specific cost correlation.

Multiply by the number of units

Total = quantity × per-unit cost
Total = 2 × $151,571.656651
Total = $303,143.313302
Per-unit increase = (1.515716566510 − 1) × 100
Per-unit increase ≈ 51.6%

Do not combine the two target units into one 4,000-gallon unit before scaling. That is a different equipment configuration.

Check exponent sensitivity

n = 0.50: total = 2 × $100,000 × 2^0.50 = $282,842.71
n = 0.60: total = 2 × $100,000 × 2^0.60 = $303,143.31
n = 0.70: total = 2 × $100,000 × 2^0.70 = $324,900.96

These scenarios vary only the exponent. They are not a statistical confidence interval or a complete estimate uncertainty range.

3. Compare Your Answers

Keep full precision during the calculation. The calculator may display fewer digits; compare answers rounded to three significant figures; retain unrounded intermediate values.

ResultExpected answerYour answer
Size ratio2__________
Cost multiplier1.52__________
Per-unit cost$151,571.66__________
Total cost for two units$303,143.31__________
Price-index multiplier1 (adjustment disabled)__________

Second check

Switch Exponent method to Linear scaling. With n = 1, the per-unit estimate becomes $200,000 and the two-unit total becomes $400,000. This provides a simple independent check of quantity handling.

4. Assumptions and Method

The reference price, capacities and exponent are hypothetical. Both units must have comparable material, pressure rating, design, scope, currency and price date. Purchased-equipment cost does not automatically include freight, installation, piping, controls, engineering or contingency. No current price index is assumed.

Equation definitions and implementation: Equipment Cost Scaling Calculator. See also calculation methodology and other worked examples.