I have been forging a bit and was wondering what damage level is for each tier. If I make a hammer with 5K damage what tier would that fall into etc?
Without getting into esoteric edge cases like forging for quirks, you’re always going to need some STR on T7.
This means that for the most part when you see “t7” hammers they can actually otherwise be forged as for T5.
Just be wary of people charging extra for “T7”. They may have done extra forging (maxing a diamond tool for DMG for insatance) but end of the day it’s overkill and you’ll still need to augment.
There are some quirks and other techniques for farming T7 with no added STR but if you’re doing that you should probably know what you’re looking at. So just some advice for people climbing the tiers.
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Something to consider, on the T7 tools;
With a T6 hammer, (diamond) you only need damage level 8, and speed(busy bee) of 3 (and a mega fast brew) to reach max stats obtainable. (one shot blocks, and reach max speed cap).
When I forge the T7’s, since you have to use a mega strength brew, instead of using a mega fast brew, I like to put as much effort into getting the speed levelled up as high as possible(I aim for level 10, but setting at 9 if it’s been a rough forge session lol). For me, (not everyone) this is the reason why the price for T7’s are a little higher.
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IMO this (a 10 forged on) should always cost a little more 
The number of times you get lucky and it’s easy doesn’t even begin to account for the trouble if you forge regularly.
Also since I pointed out maxing damage, maxing damage might be the difference between a mega and a minor too, I think. In the end if you know what you’re trying to do there are a lot of ways to split your expense. Personally I think if you have the coin, it’s never a bad idea to use a good tool!
My main point really, for those who aren’t aware, is that while for pretty much every tier, the convention is “tier at which this tool 1-hits the target block” - if it’s marked for T7 it’s different because (almost) no tool consistently 1-hits there.
OFC you can create something that will, but it’s not likely to be profitable without involving other shenanigans.