How do you calculate cutting cost per inch?

Multiply total cut length by the cost per inch, add machine setup and burdened labor, then divide by the cut length. For 1,200 in at $0.05, $95 setup, and $240 labor, that's $395 total, or $0.329 per inch all-in.

Why is the all-in cost per inch higher than the raw cost per inch?

The raw rate here is $0.05/in, but spreading $335 of setup and labor over 1,200 inches raises the all-in cost to $0.329/in. Fixed costs dominate until the cut length is large.

How does cut length affect cost per inch?

Longer cuts dilute setup and labor, pulling the all-in per-inch toward the marginal $0.05 rate. Short jobs carry a much higher effective per-inch because setup is spread thin.

What drives cutting cost per inch?

Material thickness, cut speed, gas or power consumption, pierce count, and consumable wear. A thicker plate cuts slower and burns more gas, raising the per-inch variable rate.

Should I include setup in cutting cost?

Yes — program load, material squaring, and gas/nozzle changes are real and don't scale with length. Omitting the $95 setup here would understate the job by making per-inch look like $0.05.

How can I lower cutting cost per inch?

Nest tighter to reduce travel, batch similar thicknesses to cut setups, and run longer jobs to dilute fixed cost. On this job, doubling cut length to 2,400 in would push the all-in rate well below $0.20.

Welding & Fabrication calculator

Cut Length Cost Calculator

Cut length cost prices the plasma, laser, oxy-fuel, or waterjet cutting on a fabrication job by combining the length-driven cut cost with setup and burdened labor. Estimators and shop planners use it to quote nesting and cutting accurately and to see the true all-in cost per inch once fixed costs are spread. On short runs, setup and labor dominate and the per-inch cost balloons; on long runs it settles toward the marginal rate. Getting this right keeps cutting from silently eroding job margin.

What this calculator does

Estimate total cutting cost on a job from cut length, cost per inch, machine setup, and labor with burden.
Use it when quoting cut-to-length, bar saw, or oxy-fuel cutting work and you need a defensible total cost based on the inches being cut.
It multiplies total cut length by cost per inch, adds cutting machine setup and burdened labor, then divides by cut length for an all-in cost per inch.

Formula used

Total cutting cost on the job = total cut length on the job × cutting cost per inch + cutting machine setup cost + cutting labor with burden
Cutting cost per inch (all-in) = total cutting cost on the job ÷ total cut length on the job

Inputs explained

Total cut length on the job:
Cutting cost per inch:
Cutting machine setup cost:
Cutting labor with burden:

How to use the result

Use it when quoting a cutting job or nest and you need to spread setup and labor over the total cut length.
It assumes a single blended cost per inch; mixed material thicknesses or pierce-heavy nests can vary the real per-inch rate significantly.

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.
Industrial electricity averages 8.66 cents per kWh across the U.S. (EIA, Apr 2026), up 5.5% from a year earlier. Energy-intensive steps carry this directly into unit cost.
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.
The U.S. has 53,790 fabricated metal products establishments employing about 1,441,471 workers (Census County Business Patterns, 2023).

Common questions

How do you calculate cutting cost per inch? Multiply total cut length by the cost per inch, add machine setup and burdened labor, then divide by the cut length. For 1,200 in at $0.05, $95 setup, and $240 labor, that's $395 total, or $0.329 per inch all-in.
Why is the all-in cost per inch higher than the raw cost per inch? The raw rate here is $0.05/in, but spreading $335 of setup and labor over 1,200 inches raises the all-in cost to $0.329/in. Fixed costs dominate until the cut length is large.
How does cut length affect cost per inch? Longer cuts dilute setup and labor, pulling the all-in per-inch toward the marginal $0.05 rate. Short jobs carry a much higher effective per-inch because setup is spread thin.
What drives cutting cost per inch? Material thickness, cut speed, gas or power consumption, pierce count, and consumable wear. A thicker plate cuts slower and burns more gas, raising the per-inch variable rate.
Should I include setup in cutting cost? Yes — program load, material squaring, and gas/nozzle changes are real and don't scale with length. Omitting the $95 setup here would understate the job by making per-inch look like $0.05.

Last reviewed 2026-05-12.