Should setup be charged at the same rate as run time?

Only if the same machine and people do both. A setup ties up the machine and often your most skilled machinist, so some shops charge setup at its own rate. This calculator charges setup at the machine rate.

Why cost bench work at a lower rate than machine time?

A deburr or inspection bench carries far less equipment cost than a CNC machine. Pricing bench minutes at the machine rate overprices parts with a lot of hand finishing.

Does routing cost include material?

No. It is the in-house conversion cost of the routing only. Add material, outside processing and tooling as separate quote lines, each with its own markup.

Where do I get cycle time for a part I have not made?

Take the CAM simulation time and add load, unload and in-process gauging, or time a similar part you have run. Check that tool changes are in the figure.

Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator

Job Routing Cost Calculator

Cost an order through its routing, with setup and run time priced at machine and bench work center rates. You need the order quantity, setup hours, minutes per part and each rate.

What this calculator does

What an order costs to run through its routing, in total and per part, with machine and bench time at their own rates.

Formula used

Setup cost = total setup hours × machine work center rate
Machine run cost = order quantity × machine minutes per part ÷ 60 × machine work center rate
Bench cost = order quantity × bench minutes per part ÷ 60 × bench work center rate
Routing cost = setup cost + machine run cost + bench cost; cost per part = routing cost ÷ order quantity
Setup share = setup cost ÷ routing cost; routing hours = setup hours + order quantity × (machine + bench minutes) ÷ 60

Inputs explained

Order Quantity: Parts to run on this order, including any scrap allowance.
Total Setup Hours: Setup and first-piece inspection hours summed over every operation.
Machine Time per Part: Cycle times summed over machine operations, including load and unload.
Machine Work Center Rate: Burdened hourly rate for machine operations, operator included.
Bench Time per Part: Deburr, inspect and pack minutes per part from the routing.
Bench Work Center Rate: Burdened hourly rate for hand operations such as deburr and inspection.

How to use the result

Best suited to costing a routing for an RFQ, deciding whether to quote a separate setup charge.
Machine operations share one rate; if a mill and a lathe differ widely, cost each separately and add. Excludes material, outside processing and tooling bought for the job.

Current U.S. benchmarks

The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.

Common questions

Should setup be charged at the same rate as run time? Only if the same machine and people do both. A setup ties up the machine and often your most skilled machinist, so some shops charge setup at its own rate. This calculator charges setup at the machine rate.
Why cost bench work at a lower rate than machine time? A deburr or inspection bench carries far less equipment cost than a CNC machine. Pricing bench minutes at the machine rate overprices parts with a lot of hand finishing.
Does routing cost include material? No. It is the in-house conversion cost of the routing only. Add material, outside processing and tooling as separate quote lines, each with its own markup.
Where do I get cycle time for a part I have not made? Take the CAM simulation time and add load, unload and in-process gauging, or time a similar part you have run. Check that tool changes are in the figure.

Last reviewed 2026-10-01.