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Machine Hourly Rate Calculator

Enter the machine investment, your monthly costs and operating hours to get the cost per hour, the cost per minute and the selling rate with markup for a laser, press brake or CNC machine. Free, no sign-up.

Currency

Switching the currency loads example prices in that currency; the formula stays the same.

Machine

Machine type

Choosing a type fills investment, power and gas with example values for that type; the formula is the same.

Including installation and auxiliary equipment.

Actual production hours; excluding idle time and breakdowns.

Monthly fixed costs

Operator cost and the share allocated to this machine.

Hourly variable costs and markup

Laser source + chiller + compressor + extraction.

Calculate separately for oxygen, nitrogen and compressed air.

Calculate your gas cost

Capacity sensitivity

Same costs, different monthly hours: fixed costs ($13,319.05/month) are spread over the hours, while the variable cost ($21.60/h) stays the same.

Cost per minute by monthly operating hours
Hours per monthCost per minuteRate incl. markup
120 h$2.21$2.76
160 h$1.75$2.18
180 hyour value$1.59$1.99
200 h$1.47$1.84
240 h$1.28$1.61
How was this calculated?
  1. Monthly depreciation

    $325,000.00 ÷ (7 years × 12) = $3,869.05

  2. Monthly fixed costs

    $3,869.05 + $1,600.00 rent + $5,400.00 staff + $850.00 maintenance + $1,600.00 overhead = $13,319.05

  3. Fixed cost per hour

    $13,319.05 ÷ 180 h = $73.99

  4. Variable cost per hour

    45 kW × $0.28/kWh + $9.00 gas = $12.60 + $9.00 = $21.60

  5. Machine cost per hour

    $73.99 + $21.60 = $95.59

  6. Cost per minute

    $95.59 ÷ 60 = $1.59

  7. Selling rate per minute

    $1.59 × (1 + 25%) = $1.99

Use your machine rate in every quote

LazerCRM reads cutting time and part weight from your Metalix/MetalX report, applies your rate per assist gas and prepares the quote as a branded PDF. Machine profitability reports show what each machine earns. The LazerCRM interface is currently in Turkish only. If you are interested, get in touch with us.

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How do you calculate a machine hourly rate?

A machine hourly rate is the amount you charge for every hour – or minute – a machine runs on a job. It has two parts: fixed costs you pay whether the machine runs or not (depreciation, rent, staff, maintenance and overhead) and variable costs that only occur while it runs, mainly electricity and assist gas.

Monthly depreciation = investment ÷ (depreciation years × 12). Fixed cost per hour = total monthly fixed costs ÷ operating hours per month. Variable cost per hour = total power draw (kW) × electricity price per kWh + gas cost per hour. Machine cost per hour = fixed + variable; divide by 60 for the cost per minute and add your markup for the selling rate. With the example values (investment $325,000 over 7 years, 180 hours per month, $9,450 of other monthly costs, 45 kW at $0.28/kWh and $9/h gas) the machine costs about $95.59 per hour, or $1.59 per minute.

Operating hours move the result more than any other input: the fewer productive hours, the more fixed cost each minute has to carry. The capacity table shows the cost per minute at 120, 160, 200 and 240 hours with the same costs. On a laser, oxygen, nitrogen and compressed air consumption differ widely, so calculate a separate rate per assist gas. Default values are examples; replace them with your own figures.

How to use the results

The results are technical estimates. For a binding quote, material price, scrap, labour and your own shop rules also have to be taken into account.

Frequently asked questions

How is a machine hourly rate calculated?

Add up monthly depreciation, rent, staff, maintenance and overhead and divide by the machine's productive hours per month. Then add the hourly electricity cost (kW × price per kWh) and the gas cost. The result is the machine cost per hour; add your markup to get the selling rate.

What is the difference between cost per minute and rate per minute?

The cost per minute is what one machine minute costs your business: the hourly cost divided by 60. The rate per minute is the selling price you use in quotes, i.e. that cost plus your markup.

Which monthly operating hours should I enter?

Enter the hours the machine actually produces, excluding idle time, breakdowns, maintenance and empty shifts. One shift of 22 working days × 8 hours is 176 hours, but real production time is usually lower. Overstating the hours makes the cost per minute look lower than it is and can turn quotes into losses.

Do I need a separate laser rate for each assist gas?

It is recommended. Cutting with nitrogen can use far more gas than oxygen or compressed air. Enter the gas cost per hour for each gas and calculate a separate rate; the laser cutting gas cost calculator gives you the hourly gas cost.

Can I use it for press brakes and CNC machines?

Yes. Selecting the machine type fills investment, power and gas with example values for that type; the formula stays the same. Gas cost is usually zero for press brakes and CNC machines; add coolant or tooling to the maintenance/consumables line.

What depreciation period should I use?

Use the period in which you aim to recover the investment through your quotes; it does not have to match the depreciation period in your accounts. A shorter period raises monthly depreciation and the cost per minute. The 7 years in the calculator are only an example.

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