Laser & CNC pricing guides · free guide
Laser cutter hourly rate: how to work out your cost per hour and per minute
Your machine hourly rate is the base of every quote. If it is too low, each hour you sell can lose money without you noticing. The good news: you can work it out from figures you already have.
Before cutting, check your DXF/SVG with our free Laser File Checker — it runs in your browser and your file never leaves your computer.
The amounts below are worked examples, not benchmarks. Use your own invoices.
1. Depreciation
Depreciation per hour = purchase price (machine + installation) ÷ realistic hours of use over its life.
Example: $15,000 over 5 years at 800 productive hours a year is 4,000 hours, so $3.75 an hour. Be honest about the hours: a machine that runs little costs more per hour.
2. Maintenance
Add up a year of lenses, mirrors, tubes or sources, belts, servicing and repairs, then divide by the year's productive hours. Example: $1,200 a year ÷ 800 hours = $1.50 an hour.
3. Electricity
Don't count only the laser: extraction, the chiller and the compressor draw power too. Total power (kW) × hours × your price per kWh. Example: 1.5 kW in total at $0.16 per kWh = $0.24 an hour. Use the rate on your own bill.
4. Consumables
Assist gas, nozzles, extraction filters: spread them per hour, or charge them per job if they vary a lot by material. Example: $0.50 an hour.
5. Space and fixed costs
Rent for the floor space the machine uses, insurance, software and subscriptions: divide their yearly cost by your productive hours. Example: $2,400 a year ÷ 800 hours = $3.00 an hour.
6. Your time
An hour of machine time is often an hour of you (loading, watching, unloading). Add the hourly rate you want to pay yourself. Example: $30 an hour.
The result: your price floor
| Item | Per hour (example) |
|---|---|
| Depreciation | $3.75 |
| Maintenance | $1.50 |
| Electricity | $0.24 |
| Consumables | $0.50 |
| Space and fixed costs | $3.00 |
| Machine cost per hour | $8.99 |
| Your time | $30.00 |
| Cost floor per hour | $38.99 (about $0.65 a minute) |
| Selling rate at a true 30% margin | $38.99 ÷ 0.70 = $55.70 an hour (about $0.93 a minute) |
Below the floor, you are working at a loss. Your selling rate per hour is the floor plus a margin worked out by division (cost ÷ 0.70 for a true 30% margin), not by adding 30%.
In the UK the method is identical in pounds; if you are VAT-registered, these figures are before VAT.
Price per minute: useful, but not a full quote
A rate per minute is handy for comparing jobs, but a quote also needs setup, artwork or file prep, the material or blank, finishing, packaging and fees. See how much to charge for laser engraving for a full worked quote.
Does this work for a CNC router or mill?
Yes, the method is the same. Add cutter and tooling wear, which can be a large share of the hourly cost in hard or abrasive materials. See how to quote CNC machining.
To set what you pay yourself, try our hourly rate calculator; to see how many hours you need to sell each month to cover your costs, use the break-even calculator.
Free calculators
Want a first estimate without a spreadsheet? Our free calculators run in your browser, with no sign-up, in $, £ or €: laser & CNC cost per part, hourly rate, margin & markup and break-even.
An Excel calculator to save time
Atelier Pilot is an Excel workbook for laser and CNC quotes (no macros; built for Microsoft Excel, checked in LibreOffice, Google Sheets not guaranteed). You enter your machine rate and labour rate separately, and it adds material with scrap, setup, finishing, packaging, selling fees and margin. It is a calculation tool that runs on your numbers: it promises no income and is not accounting software.
Get the Atelier Pilot quote calculator — €27, one-time
More laser & CNC pricing guides
- How much to charge for laser cutting
- How much to charge for laser engraving
- How to quote CNC machining
- Pricing tools compared: Atelier Pilot vs Tidy Margin
- All guides and comparisons
Frequently asked questions
How many hours a year should I use to spread the cost of a laser?
Your shop's real productive hours, not its opening hours. Look at your history; if you are just starting out, stay cautious.
Should my own time be in the machine hourly rate?
Yes, if you are present while the machine runs. Otherwise nothing in your price pays you.
How much should I charge per minute for laser engraving?
There is no universal figure. Divide your hourly cost floor by 60 to get your cost per minute, add your margin, then quote the whole job (setup, blank, finishing) rather than minutes alone.
Does this method work for a CNC machine?
Yes. It is the same method; add the wear of your cutting tools.
How much does the Atelier Pilot calculator cost?
€27, bought once with no subscription. There is a 30-day money-back guarantee.