Knowledge · Calculator

Calculate the machine hourly rate.

Calculate your machine hourly rate in under five minutes — with all relevant cost factors: depreciation, calculated interest, space costs, energy and tools. Free, no signup, no data tracking.

Machine & Infrastructure

h / year
Years
€ / year
€ / year
€ / m² · month

Energy & Tools

kW
%
€ / kWh
€ / year
How we calculate

The machine hourly rate formula.

Machine Hourly Rate [€/h] = Sum of all machine-dependent costs / Machine runtime [h]

Fixed costs include depreciation, calculated interest, space costs and maintenance. Variable costs are energy and tool costs. The machine runtime indicates how many hours the machine runs per year — typically 2,000 h for single-shift operation.

Worked example

Machine hourly rate step by step.

A concrete example — purchase cost €400,000, useful life 10 years, annual maintenance €12,000, space cost €7,680/year, calculated interest €15,000/year. The machine runs 2,000 hours per year.

Depreciation (€400,000 ÷ 10 years) €40,000 / year
Calculated interest €15,000 / year
Maintenance costs €12,000 / year
Space costs (80 m² × €8/m² × 12) €7,680 / year
Fixed costs total €74,680 / year
Electricity (30 kW × €0.30/kWh × 2,000 h) €18,000 / year
Total cost €92,680 / year
Machine hourly rate ≈ €46.34 / h

Formula: (Fixed + variable costs) ÷ machine runtime = €92,680 ÷ 2,000 h ≈ €46.34/h. This example shows how costs are structured and can be precisely calculated — tool costs vary per machine and are captured in the full calculation in the calculator above.

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Cost factors in detail

The most important variables explained.

Machine runtime (h / year)

Effective operating time excluding maintenance and setup. Typically 2,000 h for single-shift (250 workdays × 8 h). This value distributes annual fixed costs across actual hours.

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Planned useful life (years)

How long the machine is used productively before replacement or write-off. Typical: 5 to 15 years. A longer useful life reduces annual depreciation but increases maintenance effort.

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Replacement value (€)

Estimated cost to replace the machine after useful life. May exceed purchase cost — due to inflation or technological advancement. Basis for depreciation.

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Calculated interest (€ / year)

Cost of capital tied up — equity or debt. Reflects the foregone profit the capital could earn elsewhere. Typical: ca. 50% of purchase cost × interest rate.

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Maintenance costs (€ / year)

Maintenance, repairs, preventive measures. Often calculated as 2–4% of purchase cost p.a. Regular maintenance extends life and reduces downtime.

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Floor space & Space costs

Machine footprint in the workshop (m²) × space costs per m² and month × 12. Example: 80 m² × 8 €/m² × 12 months = €7,680 per year. Larger machines or complex systems increase the share.

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Connected load & utilization

Maximum electrical power (kW) × actual utilization (typical 40–60%). Example: 60 kW connected × 50% = 30 kW real consumption. Multiplied by electricity cost and machine runtime gives the energy cost.

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Tool costs (€ / year)

Standard tools, wear parts, possibly special tools. Typical: 2–3% of purchase cost p.a. Example: €300,000 purchase → about €6,000–9,000 tool costs per year. Variable costs, depending on usage.

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Why does the machine hourly rate matter?

The basis of every quote.

The machine hourly rate is a decisive metric in manufacturing and cost accounting. It indicates how much it costs to operate a machine per hour — including all fixed and variable costs such as acquisition, maintenance, energy and tools.

In industrial manufacturing, the machine hourly rate is widely used to calculate production costs precisely and produce quotes that are competitive and profitable. Without an accurate figure, miscalculations are likely — either profits are eroded or quotes are overpriced.

A precise calculation brings measurable benefits: cost-saving opportunities become visible, the profitability of individual machines becomes comparable, and investments can be planned more deliberately. Exact hourly rates ensure your quotes are market-fit without producing losses — and create transparency in your cost structure.

From hourly rate to a full quote

The hourly rate is the start — the rest of the quote runs in goCAD.

If you're calculating the machine hourly rate to quote CNC parts, goCAD saves you the Excel detour. Hourly rate, material, runtime, outsourced processes and the quote document — one platform, from CAD file to ready-to-send quote in minutes.

01

Real runtimes, not flat estimates

goCAD analyses the CAD file and calculates machine runtime per process step — using your cutting parameters, setup times and hourly rates. No more guesswork, no more spreadsheets full of stale assumptions.

02

Every process in one quote

Machining, sheet metal, technical plastics, assemblies and outsourced processes like surface treatment — in one quote. Instead of three tools for three processes, you keep the whole manufacturing chain in view.

03

Traceable, not a black box

Every line in the quote is traceable to machine, material and markup. No AI gut feel — you see exactly why the part price is €142.80 and can adjust any assumption.

More on the goCAD Calculator →

Want more than just the hourly rate —
and instead the whole quote?

goCAD takes the machine hourly rate, combines it with cutting parameters and material and turns it into a ready-to-send quote. Including CO₂ balance per part — for machining, sheet metal and powder-coating.

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