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Calcimator

CNC Machine Hour Rate Calculator

Calculate per-hour machine cost from depreciation, maintenance, tooling, electricity, labor, and overhead for job shop quoting.

Inputs

$
years
hrs
$/hr
$/kWh
kW
$/hr
$/hr

Results

Total Hourly Rate

$69.91

Machine-Only Rate$19.91
Cost per Minute$1.17
Depreciation/Hour$8.33
Annual Machine Cost$59,740.00
How to Use This Calculator
  1. Enter machine purchase cost ($) and useful service life (years).
  2. Set annual available hours and machine utilization percentage for your shop.
  3. Enter annual maintenance cost as a percentage of machine value and tooling cost per hour.
  4. Review total hourly rate ($), machine-only rate, depreciation per hour, and cost per minute.
  5. Use the hourly rate to create accurate job quotes and profitability analyses.

How the result changes with Operator Labor Rate

Operator Labor RateTotal Hourly Rate
$15.00$49.91
$53.00$87.91
$98.00$132.91
$135.00$169.91

What each input means

Machine Purchase Cost
Original purchase price of the CNC machine.
Useful Life
Expected useful life for depreciation.
Annual Available Hours
Total available production hours per year.
Machine Utilization
Percentage of available hours the machine is actually cutting.
Annual Maintenance
Annual maintenance cost as percentage of machine value.
Tooling Cost
Average cutting tool cost per machine hour.
Electricity Cost
Cost per kilowatt-hour of electricity.
Spindle Motor Power
Spindle motor rating in kilowatts.
Operator Labor Rate
Fully burdened operator labor rate.
Overhead Rate
Shop overhead allocated per machine hour.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Machine Purchase Cost = 250000, Useful Life = 10, Annual Available Hours = 4000, Machine Utilization = 75 = 10 input(s) provided
  2. Calculate Total Hourly Rate
    Total Hourly Rate
    69.91 = $69.91
  3. Calculate Machine-Only Rate
    Machine-Only Rate
    19.91 = $19.91
  4. Calculate Cost per Minute
    Cost per Minute
    1.17 = $1.17

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