Application Calculator
By answering 9 basic questions the ER calculator will work out your approximate design costs and time to market. It will also show you what potential profits you will lose during the design stages.

Select the appropriate currency (GBP, Euro or $), the rest is automatic.
Design approach #1
Using an RFIC and building the radio hardware/software from scratch ONLY ENTER DETAILS IN THE YELLOW BOXES EVERYTHING ELSE IS AUTOMATIC.
Select currency GBP EUR USD  
1) Estimated design time/cost
NOTE experience over many years shows that most people greatly under estimate wireless design times.
Even with good support from IC makers with reference designs etc. timescales are ALWAYS longer than expected.
Typical hardware design is 12 months and software 6 months. This also includes approval submissions.
NOTE with most wireless designs the software development can't really be started until the hardware is virtually finished, so the designs would run concurrent.
1 Hardware radio design Estimate # months  
2a Software - Bit coding +data recovery protocol Estimate # months  
2b Software - protocol for secure/reliable transmission/reception Estimate # months  
3 Engineering costs Estimate cost per month  
       
4 Total design time months  
5 Total design cost 3 X 4  
       
2) Parts costs    
       
6 Estimated total unit cost (radio only) inc. RFIC, processor (there MUST be a separate processor for the radio)  
Production build cost, testing etc. Inductors and some additional parts can cost more than expected!  
Possible multi-layer pcbs?  
       
NOTE The approximate build cost based on 10k pcs is around Estimated total/unit  
£8 or Euro12 or $14      
       
3) Volumes/margins/profits    
       
6a How many transceivers are you using per product/system    
7 How many units/systems per month will be sold Estimate monthly sales/product  
8 Product lifetime before re-design Estimate # months lifetime  
9 Gross margin estimate per finished product/system Estimate total product GM  
10 Total # units estimated in product lifetime 7 X 8  
10a Total # transceivers used 6a X 10  
11 Amortised total unit cost inc. design costs over product lifetime (5 / 10a) + 6  
       
4) Time = Profit    
       
12 How much profit has been lost whilst product has been in design stage - Radio design only  
       
  = 7 * 9 * 4  
       
"Design using "easy-Radio" module"  
Using an "easy-Radio" module is obviously quicker but could it even save money?

Now please enter the "easy-Radio" module price from the Price Guide matrix relevant to your volume.


  • "Off the shelf "easy-Radio" wireless module with embedded software
  • Quickest to market - higher cost
  • Using a wireless module with NO software to write
 
         
1) Estimated design time/cost    
       
1 Hardware radio design Already done
2a Software - Bit coding +data recovery protocol Already done
2b Software - protocol for secure/reliable tx/rx Already done
2c Implimentation of ER module into product - allow 1 month Allow 1 month  
3 Engineering costs Estimate cost per month  
       
       
4 Total design time    
5 Total design cost    
       
       
2) Parts costs    
       
6 Quoted volume price for "easy-Radio" module Volume price  
See price guide box below      
Price Guide in your selected currency (Actual prices may vary)
100 1k 5k 10k
       
       
3) Volumes/margins/profits
       
6a How many transceivers are you using per product    
7 How many units per month will be sold Estimate monthly sales/product  
8 Product lifetime before re-design Estimate # months lifetime  
9 Gross margin estimate per finished product/system auto-adjusted for additional amortised module costs  
10 Total # units estimated in product lifetime Estimate total products  
10a Total # transceivers used over product lifetime    
11 Amortised total unit cost inc. design costs over (5 / 10a) + 6  
       
       
4) Time = Profit    
       
12 How much profit has been lost during design stage - using an "easy-Radio" module  
       
  = 7 * 9 * 4  
  Now you can compare the" lost" potential profit for design options, RFIC or ER module. Note how your Gross margin has changed, this reflects the difference in amortised costs. This may not be the method you usually use to calculate total costs.

The final stage is to see if this "loss" of profit can be made up during the life cycle of the product

  
         
       
Design approach #3  

  • "Off the shelf" wireless module without embedded software
  • Quicker to market - higher cost
  • Using a wireless module but designing own software
  
       
1) Estimated design time/cost
NOTE experience over many years shows that most people greatly under estimate wireless design times.
Typical software design time 6 months
       
1 Hardware radio design Already done  
2a Software - Bit coding +data recovery protocol Estimate # months  
2b Software - protocol for secure/reliable tx/rx Estimate # months  
3 Engineering costs Engineering costs per month  
       
4 Total design time    
5 Total design cost    
       
2) Parts costs    
6 Wireless module suppliers quoted volume price Volume price  
       
3) Volumes/margins/profits    
       
6a How many transceivers are you using per produc/systems    
7 How many units/systems per month will be sold Estimate monthly sales/product  
8 Product lifetime before re-design Estimate # months lifetime  
9 Gross margin (money) estimate per finished product auto-adjust for additional module costs  
10 Total # units estimated in product lifetime 7 X 8  
10a Total # transceivers used over product lifetime 6a x 10  
       
11 Amortised total unit cost inc. design costs (5 / 10a) + 6  
       
4) Time = Profit    
     
How much profit has been lost whilst product has been in design stage - Radio design only
       
12   = 7 * 9 * 4  
       
       
         
     
     
EASY RADIO

  

 

Basic cost of the RFIC approach looks the cheapest option?

 
       
  RFIC ER  
13 Basic radio costs  
14 Amortised radio costs/unit inc. design costs = 11
   
16 Total parts cost over product lifetime = 6 X 10a
       
17      
  TOTAL SAVING RFIC over modules-non- amortised   = ER 16 - RFIC 16
         
         
  RFIC ER Module
18 Total expected GM during product life cycle = 9 X 10
19 Additional profit using RFIC   = RFIC 18 - ER 18
       
Difference between RFIC and NON ER or ER module
       
20 Additional profits   = 19
21 Parts cost savings   = 17
22 Total   = 20 + 21
NOTE a minus result below (in red) shows that the module route yields greater profits over the product lifetime  
23 Less lost profit during design stage   = RFIC 12
  NOTE a minus result (in red) shows that the module route yields greater profits over the product lifetime and the product is much quicker to market beating your competition. A positive result proves the IC route is the lower cost..

There are several" off the shelf" radio modules available on the market but these generally have no software embedded so you still have to write radio protocols etc for your wireless product to work. This is the part that will still take about 6 months.

If your other supplier is offering a lower price than ER then to see a comparison between ER and non-ER modules click here. If their price is higher then you can't lose with an ER module

 		  
24 Overall difference    
         
  RFIC ER Module
25 TOTAL DESIGN COSTS RADIO = 5
26 ADDITIONAL TIME TO MARKET IN MONTHS = 4
         
       
NON-EASY RADIO

Can you make up the lost profit over the product life cycle?
Basic cost of the RFIC approach looks the cheapest option? 		 

 

Basic cost of the RFIC approach looks the cheapest option?

 
       
  NON-ER ER  
13 Basic radio costs enter quoted module cost from supplier
14 Amortised radio costs/unit inc. design costs = 11
   
16 Total parts cost over product lifetime = 6 X 10a
       
17 TOTAL SAVING RFIC over modules-amortised   = ER15 - NON ER 15
  TOTAL SAVING RFIC over modules-non- amortised   = ER15 - NON ER 16
         
         
   
18 Total expected GM during product life cycle = 9 X 10
19 Additional profit using RFIC   = NON ER 18 - ER 18
       
Total difference between RFIC and NON ER or ER module
       
20 Additional profits   = 19
21 Parts cost savings   = 17
22 Total   = 20 + 21
NOTE a minus result below (in red) shows that the module route yields greater profits over the product lifetime  
23 Lost profit during design stage   = NON ER 12 - ER 12
24 Overall difference   = 22 - 23

"Now compare the loss of profit results using either an "easy-Radio" or NON "easy-Radio" modules. You should see that designing with an ER module not only saves time but also money against the RFIC and NON "easy-radio" approach.


NOTE a minus result shows that the module route yields greater profits.

Now click here to see details of our evaluation kits for ER modules.

 

   
         
  NON-ER ER Module
25 TOTAL DESIGN COSTS RADIO = 5
26 ADDITIONAL TIME TO MARKET IN MONTHS = 4