How this is calculated

Here are the steps, with the example on this page: 25 aluminium brackets.

  • Material per part = amount per part × price per unit. Units are changed first: 1 kg is 2.2 lb, 1 ft is 304.8 mm. 0.4 kg of aluminium at $9 per kg is $3.60. If you cut by length but buy by weight, the length is turned into weight with the bar weight per metre.
  • Machine per part = machine minutes ÷ 60 × machine rate. 12 minutes at $75 an hour is $15.00.
  • Labour per part = hands-on minutes ÷ 60 × labour rate. 5 minutes at $35 an hour is $2.92.
  • Setup per part = setup minutes ÷ 60 × setup rate ÷ quantity. 45 minutes at $75 an hour is $56.25, and ÷ 25 parts is $2.25.
  • Cost per part = material + machine + labour + consumables + setup per part. $3.60 + $15.00 + $2.92 + $0.80 + $2.25 = $24.57. The job costs $614.17.
  • Quote = job cost ÷ (1 - margin). At a 30% margin: $614.17 ÷ 0.7 = $877.38, or $35.10 per part.

Why quotes drift from what jobs really cost

Most quotes are worked out once and then reused. But bar stock prices move, a job takes longer on the machine than planned, and setup on a short run eats the profit. If you never check the real minutes and the real material used, you do not see which jobs make money.

Stockria keeps each part with its material and its machine and labour minutes. When a job is done, it takes the stock off your shelf by the mm or the kg, and shows what the part really cost next to what you quoted. See how it works for job shops, or read how to work out a machine hour rate.

How to quote a job, step by step

  1. Price the material for one part. Weigh or measure the stock one part uses, including the cut-off, and multiply by the price per kg, lb or metre.
  2. Add machine time. Multiply the minutes the machine runs for one part by your machine rate, then divide by 60.
  3. Add hands-on time. Do the same for the minutes a person spends loading, deburring, checking or finishing one part.
  4. Add consumables. Add anything used up on each part, like inserts, gas, abrasives or nozzle wear.
  5. Share out the setup. Turn the setup minutes into money and divide by the number of parts in the job.
  6. Set the quote. Multiply the cost per part by the quantity, then divide by 1 minus your margin. For a 30% margin, divide by 0.7.

Frequently asked questions

How do I quote a machining job?

Add up four things for one part: material, machine time, hands-on time and consumables. Then add the setup for the whole job, divided by the number of parts. That is your cost per part. Divide the job cost by 1 minus your margin to get the quote. This calculator does each step for you.

What is a machine hourly rate?

It is what the machine costs you for each hour it is cutting or printing. Add up a year of payments or wear, power, tooling, upkeep and floor space, then divide by the hours it really runs in a year. A machine that costs a lot but runs little has a high rate.

Why is setup separate from the cost per part?

Setup happens once per job: loading the program, making fixtures, the first part check. On a job of 1 part, the part pays for all of it. On a job of 100, each part pays for one hundredth. That is why small runs cost more per part, and why the calculator shows setup on its own line.

I buy bar stock by the kg but cut it by the mm. How do I price that?

Choose By length, enter the length each part uses, and set the price per kg. Then enter the weight per metre of the bar from your supplier's catalogue. A 25 mm round aluminium bar is about 1.33 kg per metre, so 250 mm weighs about 0.33 kg.

What is the difference between margin and markup?

Markup is profit as a share of cost. Margin is profit as a share of the price. A $70 job quoted at $100 has a 30% margin but a 43% markup. This calculator uses margin, so the percent you pick is the share of the quote you keep.

Does this work for 3D printing?

Yes. Choose By weight and enter the grams of filament or resin from your slicer, with the price per kg. Use the print time as machine time and the time to remove supports and finish the part as hands-on time. Add nozzle wear or glue as consumables. For failed prints and electricity, use the 3D print cost calculator.

Can I save this quote?

Yes. Click Save this as a recipe in Stockria. It is free for up to 250 items. Your material comes in with its price, and the part comes in with its machine and labour minutes, so your next quote for the same part starts from real costs.

More free tools

Put this calculator on your site

Run a maker blog, a forum or a class? Embed this calculator for free. Paste the code below where you want it to show.