Get A
Free Quote

    Although CNC machining can be expensive, it’s generally worth every penny. That’s because each dollar gets well spent through a series of essential processes that render precision parts and vital components. On average, computer-numerical control manufacturing costs between $75 and $200 per hour. The price always depends on several factors, though, including things you may not have thought about yet.

    The importance of calculating hourly rates for CNC machining

    The outcome of your machining project hinges on your ability to pay for what’s needed. However, it’s impossible to estimate the price of a project when you have no idea what anything costs. Therefore, learning how to calculate hourly rates for CNC machining is crucial, especially if you’re working with complex geometries, need special finishing, or have little experience with a CNC machine shop.

    Across the board, all CNC machining techniques are costly because of the level of mechanical skill and sophistication required. Since quoting and estimating won’t always render an exact number, it helps to know the factors that affect pricing. Most of the time, invoices are broken down based on hourly rates that include overhead and material costs. Still, all machine shops operate in a different way, and they each charge their own rates too.

    Fortunately, companies that use high-tech quoting software and industry-leading CAD/CAM programs tend to offer better prices. Usually, that’s because they can cut out the middleman on many processes or offer discounts because of simplified techniques that preserve tools and materials for longer. The more skill a machinist has, the more your project will cost upfront. Yet, because of their skill, you’ll save more money in the long-run.

    Understanding the factors that affect CNC machining can help you decide which processes to use or skip. It can also help you grasp what the designers and engineers are talking about during testing and certification. Then, you can offer more educated insights if there’s trouble with the blueprint. You’ll save time and money as a result, plus you’ll have more opportunities to improve your design with the team.

    How CNC machinists calculate hourly machining rates

    Most CNC machine shops calculate their prices based on an hourly rate, thereby simplifying the billing process for both sides. The cost-per-hour rate for machining can vary widely based on numerous factors, so machinists must know how to quote prices according to exact specifications. Usually, that involves using an intuitive project quoting software that takes much information into consideration.

    In most cases, hourly machining rates are calculated like this:

    • Divide the cost of the project by the total number of hours each machine is expected to work.
    • This figure defines the lifespan of the machine or about 8,000 hours on average.
    • Factor in the 5 key elements that determine the grand total (below).
    • Use a shop-specific formula to arrive at an accurate figure or relevant estimate.
    • Discuss the price with your machining team to streamline productivity and cut costs.

    Because CNC machines come in such a wide variety, it’s imperative to speak with a machinist before evaluating the price of your project. Machine cost per hour is a complex calculation that does not represent the final number. In fact, these 5 key elements are considered as well:

    #1. Materials

    The materials you use will change how much money you spend even if your project is small and simple. It will also dictate how many processes are required to produce your design accurately and efficiently. High-quality resources may be difficult to find and extend lead times as well.

    #2. Parts Geometries

    Complex parts require more machining and highly skilled programming from a talented machinist. Neither one of those things are cheap, so work with an engineer to create an affordable blueprint because cutting corners may not be the wisest choice if you’re manufacturing for certain industries.

    #3. Direct Labor

    This is typically calculated by taking the machinist’s annual salary, plus any taxes and benefits, then dividing that figure by the total number of hours the machinist works on each project (including breaks). It can also vary depending on the worker’s level of expertise and training on a specific technique.

    #4. Tools

    Each CNC machining technique requires a different machine and tool, but each tool can beckon a different price based on how complex or unique it is. I.E., the purchase price plus maintenance costs divided by the estimated lifespan of the tool itself, given it’s used on low-impact projects throughout.

    #5. Overhead

    This accounts for any cost that’s not directly involved in the machining of a part or component. It may include administrative fees, building leases, facility maintenance, office supplies, or special licensing. This is an especially important factor in projects that involve high-precision manufacturing or certifications.

    Keep in mind that many of these factors can change a work in progress. That’s another reason why it’s important to understand how CNC machining costs are calculated on an hourly basis. Machinists will combine these 5 factors to determine the most accurate quote and then give project managers a chance to make any adjustments they see fit. Thus, quotes are never a contractual obligation to pay or produce.

    What will your CNC machining project cost?

    Even with all of these tips, it can still be hard to figure out what your CNC machining project will cost. So, talk to an expert at Pioneer Cuts for more information on how to calculate the hourly rates of your next big or small venture. Get ahold of someone directly to create a ballpark quote of what you can expect to pay. Chances are, you’re missing out on some opportunities to save time, money, and/or resources just because you’re unaware of how prices get calculated.

    The sum

    CNC machining is essential and based on the principles of necessary precision. That’s why the services don’t come cheap; and they shouldn’t either. After all, highly skilled machinists work diligently to adhere to tight tolerances and strict industry regulations. Without their handiwork, the machines and software couldn’t keep up with the demand.

    Share this article!

    CNC Design for Manufacturing eBook

    Design Parts with the manufacturing process in mind.