Step 1: Read the Drawing for Cost Drivers
Before touching a number, mark up the print for what drives cost. Look at material callout and form (6061-T6 plate versus 17-4PH bar), tightest tolerances and where they sit, surface finish callouts, thread and GD&T features, and notes such as deburr all edges, anodize per MIL-A-8625, or CoC required. Note anything that needs a fixture or a second setup, and any feature that forces a small tool or slow feed.
Many quote errors come from missing a flag note on sheet two rather than a bad time estimate.
- Material spec and stock form, including certs required
- Tolerances tighter than the machine's comfortable range
- Finish, coating, heat treat and plating notes
- Inspection requirements such as FAI or CMM reports
Step 2: Build Material and Outside Processing
Material cost is stock length times price per unit, plus kerf, facing allowance and a scrap factor, with a minimum buy if the mill sells in full bars or sheets. Round up for realistic stock sizes, not the theoretical block. Outside processing needs a real vendor quote or a current price list with the vendor's minimum charge and turnaround, because a 25 piece lot priced at per-piece plating can double when the minimum lot charge applies.
Add shipping both ways and your handling markup.
Step 3: Estimate Setup and Cycle Time
Estimate each operation separately: setup minutes, then cycle time per piece including tool changes, probing, and load and unload. For repeat parts, start from actual hours on the last two runs rather than a fresh guess. For new parts, use a similar part you have run, scale for size and feature count, and add a first-article allowance for proving out the program.
Keep setup separate from run time so quantity breaks work: setup divided by 10 pieces and by 200 pieces produces very different unit prices.
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Swiss Screw Machine Cycle Cost per Part Calculator
Converts a Swiss-type cycle time and shop rates into a fully loaded cost per good part, and shows how lot size spreads the setup.
Step 4: Apply Shop Rates, Overhead and Margin
Multiply hours by a rate for each machine, not one blended shop rate, since a 5-axis mill and a manual lathe do not cost the same to run. Rates should come from your actual overhead divided by realistic productive hours, not 2,000 hours per machine. 0005 inch bore.
Quote at least three quantities so the buyer sees the price break.
Step 5: Close the Loop With Actuals
The quote is only as good as the feedback behind it. After each job, compare estimated to actual hours by operation and feed the corrections back into your standard times. Without this step estimators keep repeating the same optimistic setup time for years.
If your ERP tracks labor by operation, the data already exists; the work is reviewing it monthly. Where it is not worth the effort: one-off prototype jobs where nothing will repeat. Spend the review time on parts that come back.
Frequently asked questions
How do I estimate cycle time for a new CNC part?
Find the closest part you have already run, scale for size and number of features, then add time for tool changes and probing. Use the actual hours from that job, not its quoted hours. For truly new geometry, ask the programmer for a rough toolpath estimate, and add an allowance for proving out the first piece.
What markup should a machine shop add to a quote?
There is no universal figure. Margin should reflect risk, competition and capacity: repeat proven parts earn less, first-time or tight tolerance parts earn more, and busy weeks justify higher pricing. Review your actual margin by job in your ERP rather than copying an industry average, which varies widely by niche.
Should I quote setup separately from run time?
Yes. Setup is a fixed cost per run and cycle time is per piece. Keeping them separate lets you show quantity breaks accurately and protects margin on small lots. It also makes estimated versus actual comparison meaningful, because setup overruns and cycle time overruns have different causes.
Netray can build a private assistant that reads past jobs from your ERP and shows estimated versus actual hours when an estimator starts a new quote. Bring one family of parts and we will show it on your own history.