Metal Recycling, Scrap Processing & Salvage worked example

Torch Cutting Cost at 86% productive arc-on cut time: a worked example

What does the result look like when productive arc-on cut time reaches 86%? The full calculation is worked below with real intermediate numbers. A salvage yard pricing a demolition job uses this to estimate the torch labor and gas cost to cut oversized steel to charge size.

The inputs for this scenario

  • Torch cutting hours: 16 hours (unchanged)
  • Loaded torch crew rate: 72 $/hr (unchanged)
  • Productive arc-on cut time: 86 % (raised for this scenario; the documented default is 75)
  • Consumables & setup cost: 180 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total = cutting hours x loaded torch rate x productive cut time% + consumables) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,171 $ for total torch cutting cost, the number this scenario is built around.
  • At this operating point the engine returns 73.17 $ / piece for torch cutting cost per unit.
  • At this operating point the engine returns 991 $ for variable torch cutting cost.
  • At this operating point the engine returns 180 $ for fixed torch cutting cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where productive arc-on cut time sits at 75% and the headline result is 1,044 $, this scenario comes in 12.14% above the baseline at 1,171 $.
  • A figure at this level is achievable when productive arc-on cut time is genuinely sustained, not just peaked for a shift. 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.

Results at a glance

  • Total torch cutting cost: 1,171 $ (headline result)
  • Torch cutting cost per unit: 73.17 $ / piece
  • Variable torch cutting cost: 991 $
  • Fixed torch cutting cost adder: 180 $

Run it with your numbers

  • Every input above is editable in the live Torch Cutting Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.