CNC Machining worked example

CNC Machine Hour Cost with machine ownership and depreciation of 21 $ / hr: a worked example

Here is what the math looks like when conditions slip. We hold every other input steady and drop machine ownership and depreciation to 21 $ / hr, then walk the calculation through step by step. Estimate CNC machine-hour cost by adding machine depreciation, labor, overhead, maintenance, energy, and other hourly burden components.

The inputs for this scenario

  • Machine ownership and depreciation: 21 $ / hr (the input this scenario stresses; the baseline uses 42)
  • Operator labor and supervision: 55 $ / hr (held at the documented default)
  • Shop overhead, energy, and floor space: 38 $ / hr (held at the documented default)
  • Maintenance, tooling support, and software: 18 $ / hr (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: CNC machine-hour cost = machine ownership and depreciation + operator labor and supervision + shop overhead, energy, and floor space + maintenance, tooling support, and software.
  • CNC machine-hour cost works out to 132 $ / hr at these inputs, and this is the headline figure for the scenario.
  • Element 1 works out to 21 $ / hr at these inputs.
  • Element 2 works out to 55 $ / hr at these inputs.
  • Element 3 + 4 works out to 56 $ / hr at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where machine ownership and depreciation sits at 42 $ / hr and the headline result is 153 $ / hr, this scenario comes in 13.73% below the baseline at 132 $ / hr.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to machine ownership and depreciation, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. The rate is only as honest as your assumed annual available hours — spreading fixed cost over an optimistic utilization makes the rate look artificially cheap.

Results at a glance

  • CNC machine-hour cost: 132 $ / hr (headline result)
  • Element 1: 21 $ / hr
  • Element 2: 55 $ / hr
  • Element 3 + 4: 56 $ / hr

Run it with your numbers

  • To rerun this with your own numbers, open the live CNC Machine Hour Cost calculator, set machine ownership and depreciation to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.