No need to know the vocabulary first
A few words, explained
- Spindle
- The rotating assembly that turns the cutting tool.
- CAM
- Computer-aided manufacturing: software used to prepare the machine's cutting movements.
- CNC
- Computer numerical control: a computer directs a cutting machine.
- Workholding
- The way you keep a piece securely in place while working on it.
- Overhead
- Everyday business costs, such as rent, that need to be covered by the work you sell.
- Markup
- The amount added to a cost, expressed as a percentage of that cost.
4 more words used on this page
- Scope
- What an agreed job includes, and what it leaves out.
- Capacity
- How much work you can realistically finish with your available time and equipment.
- Setup cost
- Work needed to prepare a job or batch before repeat production begins.
- Machine recovery
- The chosen allocation of equipment-related costs to machine use; define what it includes.
Before you begin
A task timer or completed job log. The example rates are fictional, with labor and machine recovery deliberately separated.
What this lesson covers
- Allocate programming and setup across the actual order.
- Distinguish operator labor from machine recovery without double counting.
- Use accepted output when calculating unit cost.
Recommended preparation
01 / Understand
How it works
A CNC estimate needs to cover programming, setup, cutting, handling and cleanup. Track these stages separately so you can price one-off jobs and repeat orders using the work each actually requires.
Separate setup from machine run time
Record programming, fixturing, tool changes, setup checks, loading, unloading and cleanup separately from cutting time. This shows which costs recur and which can be spread across a batch.
Recover equipment and tooling costs
Spindles, vacuum systems, bits, dust collection, maintenance, and shop space all support the job. Use a defined machine or shop rate rather than treating those costs as free.
Compare estimate to actual results
Record actual setup, run time, tool wear, material use, and scrap. The best way to improve a CNC estimate is to learn from completed work.
Key points
- Cycle time is only one part of the CNC job.
- Include programming, setup, loading, inspection, cleanup and tooling in the estimate.
- Repeat work may reduce setup time, but it does not remove recurring shop work.
02 / Worked example
Programming and machining costs for ten parts
A fictional ten-part batch uses 30 minutes of programming, 20 minutes of setup, and 40 minutes of attended running. Labor is $30/hour; a separate $12/hour machine rate excludes labor. Material and tooling are additional.
| Cost line | Calculation | Batch cost |
|---|---|---|
| Programming | 0.5 h × $30 | $15 |
| Setup | 20/60 h × $30 | $10 |
| Attended-run labor | 40/60 h × $30 | $20 |
| Machine recovery | 40/60 h × $12 | $8 |
| Subtotal | $53 ÷ 10 accepted parts | $5.30 per part before other costs |
03 / Try it with your project
Apply the method
Work through the drawing or setup review first, then use a sample that matches your project. Check the equipment and safety requirements above before starting any machine work.
- Time a small test job from CAD review to cleaned part.
- Write each step in a separate line: programming, setup, run, unload, cleanup.
- Compare the tracked total with the number you would have quoted from spindle time alone.
Common mistakes
- Pricing only the machine run.
- Hiding setup inside an arbitrary material markup.
- Assuming the first job and repeat job have identical cost.
Take it further
Compare batch sizes of 1, 10, and 25 using the same fixed setup and explicitly stated per-part work. Explain where your simple model stops matching capacity or real production.
Workshop checklist
Use this topic checklist alongside your machine’s full setup procedure.
- List CAD/CAM, setup, machining, and cleanup separately.
- Include material handling and workholding.
- Include tooling, consumables, and machine or shop cost.
- Protect the quote with a suitable risk and profit buffer.
- Compare actual results after the job closes.
04 / Review questions
Review the key decisions
Consider each question, then compare your answer with the explanation. Return to the worked example whenever you need it.
1. Only eight of the ten parts pass. What happens to this subtotal per accepted part?
View hint
Divide the same batch cost by eight accepted parts.
View explanation
$53 ÷ 8 = $6.625, or about $6.63 per accepted part, before material, tooling, and other costs. Rejects still consumed resources.
2. Can a repeat order always omit programming cost?
View hint
Compare the actual scope and revision.
View explanation
Only omit work that truly does not recur. File changes, revisions, prove-out, fixture changes, and checking may still require time; separate them from original programming.
05 / Project notes
Notes for your next project
Check off the topics you have reviewed and record anything useful for your next build. This tracks your learning progress; use your equipment’s setup procedure for machine checks.
Record: Programming time, setup time, machine run time, labor, material waste, tooling, cleanup, and actual margin.
No notes recorded. Use this space for your observations.
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Check each topic above to mark the lesson as reviewed. You can browse any lesson at any time.
Related calculators
Use your project measurements and costs in the calculators below. Check the results against the stock, equipment and requirements of the job.
Practice with a complete project
Apply the lesson to measured dimensions, then keep the drawing, material list and build checks together.