Assuming the original engine is rebuildable and the amount of machine work required to restore it is minimal. Most of the savings comes from the labor you put into tearing down the engine and then reassembling it.
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In case you’re considering an engine rebuild, you need to make sure you evaluate your car to see if it’s worth it. However, it is always a personal choice.
While when you have a more than 20 year old car with over 300,000 miles, this can be an easier choice, if the car is 10 years and has 200,000 miles it can be a lot harder to know if it is worth to do an engine rebuild.
Rebuilding a damaged engine may be a more economical option than full replacement.
So, With engine rebuilding, you know everything has been closely inspected and it has many new parts. Also, It will extend the length of life for the engine. How long it will last depends on how many components were replaced. Another benefit is that you are recycling engine parts to help reduce the amount of scrap in the environment.