The performance of cutting tools can be significantly enhanced by matching the cutting edge rounding to the process and material properties. However, the conventional cutting edge rounding design is characterized by a significant number of experimental machining studies, which involve considerable cost, time, and resources. In this study, a novel approach to cutting edge rounding design using FEM-based chip formation simulations is presented. Based on a parameterized simulation model, tool temperatures, stresses and relative velocities can be calculated as a function of tool microgeometry. It can be shown that the external tool loads can be simulated with high agreement. With the help of these loads and the use of wear models, the resulting tool wear and the optimum cutting edge rounding can be determined. The final experimental investigations show a qualitatively high agreement to the simulation, which will enable a reduced effort design of the cutting edge in the future.