# CNC Machining Cost Calculator

> Source: https://netray.co/tools/cnc-machining-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Build a per part CNC price from setup hours, cycle time, shop rate, material, tooling, outside processing, scrap and margin.

## Category

cost-finance

## Industry

Machine Shops

## Audience

- Estimator
- Machine shop owner
- Manufacturing engineer

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Order quantity

**Key:** qty

**Type:** number

**Default:** 50

**Min:** 1

**Step:** 1

**Unit:** parts

#### Setup and first article time

**Key:** setup_hrs

**Type:** number

**Default:** 3

**Min:** 0

**Step:** 0.25

**Unit:** hours

#### Cycle time per part

**Key:** cycle_min

**Type:** number

**Default:** 12

**Min:** 0

**Step:** 0.5

**Unit:** minutes

**Help:** Include load, unload and any in-process inspection.

#### Machine shop rate

**Key:** rate

**Type:** number

**Default:** 85

**Min:** 0

**Step:** 5

**Unit:** $/hour

**Help:** Loaded hourly rate including operator and overhead. See the hourly rate calculator.

#### Material per part

**Key:** material

**Type:** number

**Default:** 18

**Min:** 0

**Step:** 1

**Unit:** $

**Help:** Stock cost including cutoff and drop.

#### Tooling and consumables per part

**Key:** tooling

**Type:** number

**Default:** 1.5

**Min:** 0

**Step:** 0.25

**Unit:** $

#### Outside processing per part

**Key:** outside

**Type:** number

**Default:** 4

**Min:** 0

**Step:** 0.5

**Unit:** $

**Help:** Anodize, heat treat, plating, inspection services.

#### Expected scrap and rework allowance

**Key:** scrap

**Type:** slider

**Default:** 3

**Min:** 0

**Max:** 30

**Step:** 1

**Unit:** %

#### Margin on cost

**Key:** margin

**Type:** slider

**Default:** 25

**Min:** 0

**Max:** 100

**Step:** 1

**Unit:** %

**Outputs:**

#### Setup cost for the order

**Key:** setup_cost

**Expr:** setup_hrs * rate

**Format:** currency

#### Machining cost per part

**Key:** run_cost

**Expr:** cycle_min / 60 * rate

**Format:** currency

#### Direct cost per part

**Key:** part_base

**Expr:** run_cost + material + tooling + outside

**Format:** currency

#### Cost per part with scrap allowance

**Key:** part_cost

**Expr:** part_base / (1 - scrap / 100)

**Format:** currency

**Description:** Spreads the cost of scrapped parts over good parts.

#### Total order cost

**Key:** total_cost

**Expr:** part_cost * qty + setup_cost

**Format:** currency

#### Order price

**Key:** price

**Expr:** total_cost * (1 + margin / 100)

**Format:** currency

**Primary:** true

#### Price per part

**Key:** price_part

**Expr:** price / qty

**Format:** currency

**Primary:** true

**Chart:**

#### Price per part vs order quantity

**Type:** line

**X:** qty

**From:** 1

**To:** 200

**Steps:** 40

**Series:**

- price_part

**Disclaimer:** A planning estimate only. Real quotes also reflect fixturing, programming time, inspection, packaging, freight and customer terms.

## Content

**Intro:** A quote is a short model of the job: how long it runs, what it consumes and what the shop must earn. This calculator rolls those pieces into a price per part and shows how quantity changes it.

**Sections:**

#### How to use the calculator

**Body:** Enter the order quantity, the hours for setup and first article, the cycle time per part and your loaded shop rate. Add material, tooling and outside processing per part, then a scrap allowance and a margin. The tool returns setup cost, machining cost per part, direct cost, total order cost, the order price and the price per part. The chart sweeps quantity so you can show a customer how the price drops as the setup is spread across more parts, which is the basis of most quantity break tables.

#### How the cost is built

**Body:** Setup is a one-time cost per order: setup hours multiplied by the shop rate. Run cost is cycle time in hours times the rate. Direct cost per part adds material, tooling and outside services. Scrap is applied as a divisor, 1 minus the scrap fraction, so that good parts carry the cost of the bad ones; at 3 percent scrap, cost rises about 3.1 percent. Finally the margin is applied on cost. Some shops quote margin on price instead, which needs a divisor rather than a multiplier.

**Bullets:**

- Setup cost = setup hours x rate
- Run cost = cycle minutes / 60 x rate
- Cost per part = direct cost / (1 - scrap fraction)
- Price = total cost x (1 + margin)

#### Worked example

**Body:** At 50 parts, a 12 minute cycle at $85 per hour gives $17 of machining. Add $18 of material, $1.50 of tooling and $4 of outside processing for $40.50 direct. With 3 percent scrap that is about $41.75 per part, or $2,088 for 50 parts, plus $255 for a three hour setup, totaling $2,343. A 25 percent margin gives a price near $2,929, about $58.60 per part. At 10 parts the setup weighs far more heavily, which is exactly what the chart shows.

#### Common mistakes

**Body:** The usual errors are underestimating cycle time by leaving out load, unload and probing, and quoting with a machine rate that excludes the operator or overhead. Another is forgetting that material arrives in stock sizes, so a small part may consume far more bar than its finished volume suggests. Finally, avoid using the same margin for prototypes and repeat orders. The first run carries programming and fixture costs that repeat orders do not.

**Cta:** If quoting still happens outside your ERP, Netray can help connect estimates to routings, material costs and actual job results so the next quote improves on the last.

**Faq:**

#### How do I calculate the cost of a CNC machined part?

**Answer:** Add machining time cost (cycle time times shop rate), material, tooling, outside processing and a scrap allowance, then spread the setup cost across the order quantity and apply margin. This calculator follows that structure step by step.

#### What hourly rate should I use?

**Answer:** Use a loaded rate that covers machine depreciation, operator labor, utilities, tooling overhead, floor space and administration. Typical rates differ widely between 3 axis, 5 axis and mill-turn equipment, so use the rate for the machine that runs the job.

#### Why does the price per part drop with quantity?

**Answer:** Setup, programming and first article inspection are fixed costs for each order. More parts share that fixed cost, so the cost per part falls toward the pure run cost. The curve flattens once setup is a small fraction of the total.

#### Should margin be on cost or on price?

**Answer:** Both are used. Markup on cost multiplies cost by 1 plus the percentage, as this tool does. Margin on price divides cost by 1 minus the percentage, giving a higher price for the same percentage figure. Pick one and use it consistently.

## Search terms

cnc machining cost calculator, machining cost estimator, cnc part pricing calculator, how to quote cnc parts, machine shop quoting, cost per part machining, cnc quote calculator, setup cost amortization

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