How do you calculate torch cutting cost?

Multiply cutting hours by the loaded torch rate and the productive cut-time percentage, then add consumables and setup. Here 16 x 72 x 0.75 + 180 = $1,044.

What is the cost per hour of torch cutting in this example?

Divide total cost by cutting hours: $1,044 over 16 hours is $65.25 per hour, above the bare loaded rate because consumables and setup are spread across the hours.

Why multiply by productive cut time?

Crews spend only part of the clock actually cutting; the rest is repositioning and rigging. Applying 75% here scales the $1,152 of clock labor down to $864 of value-add cutting cost.

Is torching cheaper than shearing?

For thick or awkward pieces torching often wins on flexibility, but at $65.25/hr here you should compare against shear throughput cost per ton before committing oversized material to the torch.

What is a realistic productive cut-time percentage?

Most yards see 60-80% arc-on time once you net out rigging and repositioning; the 75% used here is typical for organized heavy-melt cutting.

What goes into the loaded torch rate?

Wages plus burden, PPE, and equipment allocation. The $72/hr here should already include the cutter's fully burdened labor, separate from the consumables line.

Metal Recycling, Scrap Processing & Salvage calculator

Torch cutting cost Calculator

Cutting oversized structural steel, tanks, and machinery down to charge-box size with an oxy-fuel or exothermic torch is one of the most expensive value-add steps in a scrap yard. This calculator combines torch cutting hours, the loaded crew rate, the share of time actually spent arc-on, and consumables plus setup into a total cost and a true cost per hour. Yard managers and estimators use it to price prep work into a buy, decide whether to torch in-house or shear, and control oxygen and propane burn. Because productive cut time is often far below clock hours, this is where hidden cost in heavy-melt processing hides.

What this calculator does

Estimate oxy-fuel torch cutting cost for scrap sizing from operator hours, loaded rate, productive time, and consumable setup.
A salvage yard pricing a demolition job uses this to estimate the torch labor and gas cost to cut oversized steel to charge size.
It computes total torch cutting cost and per-hour cost from cutting hours, loaded rate, productive cut-time fraction, and consumables.

Formula used

Total = cutting hours x loaded torch rate x productive cut time% + consumables
Per hour = Total / cutting hours

Inputs explained

Torch cutting hours:
Loaded torch crew rate:
Productive arc-on cut time:
Consumables & setup cost:

How to use the result

Use it when estimating prep cost on oversized scrap, comparing torching to shearing, or auditing consumable burn on a cutting crew.
The productive-time factor scales labor cost but the calculator does not separately model oxygen and fuel gas burn, which can swing sharply with material thickness.

Current U.S. benchmarks

The producer price index for steel mill products stands at 348.53 (BLS, May 2026), up 6.7% from a year earlier. Quotes priced off last quarter's material cost miss this move.
U.S. iron and steel imports ran $2.1B in May 2026 (Census International Trade). The U.S. ran a trade deficit of $0.4B in the category that month. Import volumes are the pressure gauge behind tariff and reshoring decisions.

Common questions

How do you calculate torch cutting cost? Multiply cutting hours by the loaded torch rate and the productive cut-time percentage, then add consumables and setup. Here 16 x 72 x 0.75 + 180 = $1,044.
What is the cost per hour of torch cutting in this example? Divide total cost by cutting hours: $1,044 over 16 hours is $65.25 per hour, above the bare loaded rate because consumables and setup are spread across the hours.
Why multiply by productive cut time? Crews spend only part of the clock actually cutting; the rest is repositioning and rigging. Applying 75% here scales the $1,152 of clock labor down to $864 of value-add cutting cost.
Is torching cheaper than shearing? For thick or awkward pieces torching often wins on flexibility, but at $65.25/hr here you should compare against shear throughput cost per ton before committing oversized material to the torch.
What is a realistic productive cut-time percentage? Most yards see 60-80% arc-on time once you net out rigging and repositioning; the 75% used here is typical for organized heavy-melt cutting.

Last reviewed 2026-05-12.