Calculators · Updated 2026-10-30

What does this machine cost per billed hour?

Your part priced in about 90 seconds, no account.

Divide a machine’s annual allocated costs by the hours you can actually bill, then add your chosen markup. This example VMC has 2,000 staffed hours but only 1,300 billed hours at 65% utilization. Its operator alone costs $60 per billed hour: $78,000 a year divided by 1,300.

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Build one machine's hourly burden

Presets are illustrative capital budgets, not vendor prices. Straight-line ownership recovery with no resale, plus interest on half the purchase price; no loan amortization or tax depreciation. Labor is paid for all staffed hours. Set labor to zero for a machine-only burden.

Annual allocation and the resulting billed-hour rate
ItemAnnual costCost per billed hour
Machine payments and interest$26,678.57$20.52
Floor space$3,000.00$2.31
Power$2,184.00$1.68
Service, coolant and tooling$9,000.00$6.92
Operator, with taxes and benefits$78,000.00$60.00
Share of shop overhead$30,000.00$23.08
Total / break-even$148,862.57$114.51
Selling rate including markup$131.69
Billable hours/year1,300

Treat the purchase budget consistently

Purchase price includes installation and the tooling package you intend to recover with the machine. This worksheet spreads that amount over a chosen ownership period and adds interest on half the original balance. It is a planning allowance, not a loan payment schedule or tax depreciation calculation. Enter an annual ownership equivalent from your accountant if that better represents your business. A paid-off machine can still require replacement reserves; entering zero purchase cost is a deliberate policy choice rather than free production.

Allocate people and shared costs once

An operator earning $30 per staffed hour with 30% payroll and benefits burden costs $39 per staffed hour. That person is paid during maintenance, waiting and other unsold time. Two machines per operator splits that annual labor between them. Use that setting only when the staffing plan supports it; a Swiss cell needing frequent manual interventions may not. Allocate office, quality, insurance and software expenses to this work center without also placing those same dollars in upkeep. Set wage to zero when comparing a machine-only rate against a separate labor charge.

Test the budget before publishing a rate

The preset buttons are hypothetical capital plans, not machine vendor offers or published US market rates. Waterjet maintenance includes an example allowance that should be replaced with your pump, nozzle and abrasive policy; if abrasive is charged separately per job, remove it from annual upkeep. Power is charged during billed hours only. Change utilization to a level your order history can support, then compare the calculated rate with the selling rate your customers accept. A gap requires a capacity, cost or pricing decision before it becomes a quote promise.

Price one of your own parts

Drop a PDF drawing or a STEP file. QuotedPart reads the print, measures the model and prices it in seconds, on default shop rates you can change.

Your STEP file or PDF drawing

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