WoodWorkCalc

CNC workshop / Lesson 4 of 4

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CNC job costing

Allocate programming, setup, machine time and labor across the order.

5 min estimated reading · Allow additional time for practical exercisesJump to worked example

Check the tool and setup

Use the illustrated bit, collet, material-zero and laser-focus guides with this lesson.

Open the matching tooling library

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 / Key concepts

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.

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.

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.

Example calculations and observations
Cost lineCalculationBatch cost
Programming0.5 h × $30$15
Setup20/60 h × $30$10
Attended-run labor40/60 h × $30$20
Machine recovery40/60 h × $12$8
Subtotal$53 ÷ 10 accepted parts$5.30 per part before other costs
What the result meansSetup may be spread over a batch, but it does not disappear. If the rate already includes labor or overhead, do not add that same cost again.

03 / Workshop exercise

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.

  1. Time a small test job from CAD review to cleaned part.
  2. Write each step in a separate line: programming, setup, run, unload, cleanup.
  3. 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.

Project notes and next steps

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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.