How to Calculate PCBA and PCB Costs Accurately Using Product Costing Software

Electronics are becoming one of the most significant cost drivers across industries - from automotive and consumer goods to industrial machinery and renewable energy. As the world shifts towards digitalization, automation, and electrification, electronic control units (ECUs) are increasingly embedded in products that demand precision, connectivity, and sustainability. 

For cost engineers and sourcing professionals, this trend presents a growing complexity in understanding, tracking, and optimizing the true cost of electronic assemblies. The cost of the bare PCB, the PCBA production process, and the electronic components themselves are costed individually, since they are different in terms of cost structure and influence. In this article, we’ll focus on PCB and PCBA production. The electronic component costing will be covered in a dedicated blog post coming soon.

Understanding the Basics: PCB vs. PCBA 

To build a reliable electronics cost calculation, it is essential to differentiate between two key components: the PCB and the PCBA. 

The Printed Circuit Board (PCB) is the base board that provides mechanical support and establishes the electrical connections between components. Made from materials like fiberglass and epoxy and lined with copper traces, PCBs can range from simple single-sided boards to densely packed multilayer boards found in modern electronics devices ranging from smartphones to data centers and automotive applications. 

In contrast, the Printed Circuit Board Assembly (PCBA) refers to the completed board after all electronic components, such as resistors, ICs, and connectors have been mounted onto the PCB. The assembly process is consequently centered around soldering the Suface-Mount (SMT) and Through Hole Tech (THT) components. Additional and auxiliary steps can include singulation, inspection, programming and testing, conformal coatings and others.  A PCBA then is what goes into a product as a functioning electronic module. 

From a cost engineering standpoint, this distinction is critical. The PCB primarily incurs costs related to materials, fabrication complexity, and layer design. The PCBA, on the other hand, involves assembly labor, machine time, component pricing, and tooling. For precise cost control and supplier negotiations, these must be calculated separately and then integrated into the full product cost model. 

What Drives Costs in PCB and PCBA Manufacturing? 

PCB Cost Drivers 

Accurate electronics calculation requires understanding the main factors that influence PCB manufacturing costs: 

• Size and Panel Utilization: The efficiency of fitting individual PCBs into a production panel affects material waste and cost per unit. 
• Layer Count and Stack-up: Additional layers involve more lamination and drilling steps, increasing both material and processing costs. 
• Base Material and TG Rating: Materials with a high glass transition temperature (e.g., TG170) are often required for demanding environments like automotive applications, though they increase costs.  
• Surface Finish Type: Options such as OSP (Organic Solderability Preservative) or ENIG (Electroless Nickel Immersion Gold) offer different performance levels and pricing. 
• Via Design Complexity: Blind, buried, and microvias increase process complexity compared to standard through-hole vias. 

PCBA Cost Drivers 

The cost structure of assembling a PCB into a functioning module involves both process and tooling - distinct from the cost of the components themselves, which will be covered separately.  

• Component Count and Type: The total number and distribution of SMD and THT components on the PCB impacts machine setup and cycle time.  
• Assembly Process Features: Steps such as selective coating, memory flashing, or X-ray inspection must be accounted for when calculating costs. 
• Tooling Requirements: Items like solder stencils, test jigs, and coating fixtures contribute to recurring expenses. 
• Machine Time and Setup: Allocation and available setups of SMD lines, requirements on the soldering processes, coating and further assembly steps shape the final calculation.  

Capturing these cost drivers with the right level of detail is key to producing accurate electronics cost calculations and supporting traceable, defensible cost structures. 

Why You Need More Than Excel for Electronics Costing 

While spreadsheets can handle basic electronics costing in early development phases, they quickly become difficult to maintain and prone to errors as complexity increases. With hundreds of components and numerous process steps, risks include outdated assumptions, manual entry mistakes, and a lack of integration with procurement or inventory systems. 

Excel also lacks the ability to simulate process changes, adjust for different volumes, or incorporate manufacturing location effects. For teams working across design, procurement, and manufacturing, a dedicated cost engineering tool like Tset improves accuracy, collaboration, and response time.

Why Tset is the Right Tool for Electronics Cost Engineering 

Whether operating in automotive, industrial, or consumer sectors, accurate electronics calculation is critical. Tset provides a structured, transparent, and scalable approach to managing these costs, supporting engineering and sourcing professionals with a powerful cost engineering tool. 

With Tset, teams can: 

• Build detailed cost breakdowns based on actual manufacturing logic 
• React to design or volume changes with confidence 
• Provide purchasing with defendable and traceable cost data 
• Compare multiple costing scenarios - evaluate how changes in volume, production location, or assembly process impact total cost and margins. 

In a landscape where electronics cost pressures are increasing, Tset gives cost engineers the structure, flexibility, and process accuracy needed to make informed decisions quickly. 

Curious how electronics cost calculations really work in practice? 

See how Tset’s cost modules transform a few simple inputs into a complete, transparent PCBA and PCB cost breakdown. This short tutorial walks through the full bottom-up calculation - from component placement and coating to tooling and panelization logic - all based on real manufacturing steps.