How to calculate CNC machining costs?

08 Apr.,2024

 

If you’re considering CNC machining parts for your next project, understanding the cost of is crucial for effective financial planning, resource management, and overall decision-making throughout the product development process. In this article, we will explore the cost of CNC machining and factors that drive it. We will also dive into how it compares to the cost of 3D printing, top tips to reduce costs for manufacturers on a budget, and guide you on estimating the cost of your specific part or prototype.

 

The true cost of CNC machining

How much does CNC machining really cost? A simple CNC part can cost from as low as $100 per piece, while larger metal parts might escalate into several thousand dollars or higher. There are countless factors that adds to the cost of CNC machining, from material, labour to the equipment, and many other little factors like changeover, cleaning, maintenance and so forth.

 

To simplify the calculation process, most companies employ a simple formula: raw material cost + machining cost + post processing cost + overhead cost, with a profit margin added to the total. In the next section, we will provide a complete breakdown of these factors.

 

Factors that drive the cost of CNC machining

1. Raw Material Costs

In CNC machining, material cost varies depending on the billet size, quantity and type of material. To give an idea, stock billets for CNC often range from around $3 per kilogram up to over $200 per kilogram. Metals are usually more expensive than plastics, and within their individual groups, some metals and plastics are more costly than others per kilogram. For example, you can expect machining titanium or stainless steel to cost more than aluminum, and CNC PEEK to cost much more than ABS or acrylic.

 

2. Machining Costs

This cost includes programming, manufacturing any fixtures and the actual cutting of the material. The shop will examine your part and, based on experience, estimate how long it will take to write the code for the machines, how long to machine it, and the overall complexity. Lathes generally cost less as they feature less complex moving parts, typically ranging from $15 per hour.

In China, some shops will quickly mill simple ABS plastic with little regard for tolerances for $5 per hour. While larger shops may charge from $10 – $30 per hour from 3-axis machining to 5-axis machining. In comparison, in Europe, you can expect 3-axis machining to cost roughly $30 to $40 per hour. For parts that demand high-speed 5-axis milling, costs can reach as high as $75 to $150 per hour.

 

3. Post-Processing Cost

Post-processing includes assembly costs and surface finishing operations like smoothing, bead blasting, polishing, and so forth. While early-stage or functional CNC prototypes can often get away with a simple deburr finish, when a high-quality appearance is required, extensive post-processing can end up significantly adding to the overall machining costs. 

 

 

 

A good example is a smartphone. Since the product is essentially a flat rectangular cuboid, the materials might cost just $10 per phone, and there isn’t a great deal of machining to worry about. But the post-processing is key and the types are many. The screen will require a high polish finish, possibly an anodized aluminum frame, a high-quality laser-engraved barcode, and silk-screened or painted text or logos. Not to mention the assembly work.

 

4. Overhead Cost

For prototype quantities, overhead such as facility expenses, utilities, administrative costs and so forth are not contributing a great deal to the cost compared to the other factors, but it does influence the costs. There are also shops that are ISO certified, well-managed enterprises with proper inspection and quality control procedures in place. The efforts placed into managing and delivery better quality products will drive costs up a little. Others are one-man shops with very little overhead to speak of. You can get good parts out of the smaller shops, but they will struggle to do it consistently.

 

 

5. Profit

As with any business, suppliers and vendors are supplying you with parts to ultimately make a profit themselves. CNC companies seek a standard 10 to 20% profit with each order, but this rate can vary drastically from supplier to supplier. Certain parts may also command larger profit margins than others. For example, highly skilled appearance models may demand a higher profit margin than machined structural components.

 

Other factors to consider

Cost by Product Type. Is your CNC part a functional prototype or an assembly piece that needs tight tolerances? Is it a huge part that will need to be machined? Will it be made from an easy-to-machine material? The nature, size and complexity of the object you’re trying to create significantly impacts the overall cost of CNC machining. It indirectly impacts costs, as it may mean higher material usage, longer production times, and the need for bigger and more advanced machinery and tools.

Don’t Forget Shipping Fees. When obtaining a quote for CNC machining services, it’s essential to inquire about shipping costs if they are not explicitly included. Shipping fees can significantly impact the total expenditure and should be considered as an essential component of the overall cost estimation.

 

CNC Machining vs. 3D printing cost

Material costs for 3D printing tend to scale more linearly with the number of parts produced, as each part produced typically requires its own dedicated amount of printing material. In contrast, with CNC machining, often the raw materials costs per unit may decrease as larger quantities are produced, as the same block (or slightly bigger one) may be used more efficiently for multiple parts.

For highly complex designs, CNC machining may be less cost-effective than 3D printing. This is because the intricacy of the process will require more expertise, advanced machinery and tools. Whereas, 3D printing often maintains relatively consistent costs regardless of complexity. As it is an additive layer-by-layer process, the complexity design does not substantially impact the cost.

Understanding these differences in cost implications helps in making informed decisions regarding which manufacturing process may be more cost-effective based on the specific requirements of a project. Understand better how suppliers calculate the cost of 3D printing

 

Tips to reduce CNC machining cost

Reducing CNC machining costs involves a combination of optimizing design, material selection, and manufacturing processes. Here are some tips to help you minimize CNC machining costs:

 

  • Optimise your design: Complex designs and tight tolerances often require more advanced machinery and tools and longer machine time and labour. Reducing unnecessary features or complex geometries and only labelling tolerances (where absolutely necessary) can significantly lower costs.
  • Use compatible material alternatives: The CNC machining process is compatible with a wide variety of materials. In the prototyping stage especially, explore compatible, cost-effective materials that can serve the purpose without compromising quality.
  • Avoid multiple finishes: Proof-of-concept prototypes can often do without detailed surface finishes and extensive post-processing. Eliminate unnecessary processing and try to incorporate the missing elements directly into your final design.
  • Order in batches: Consider producing parts in larger batches. CNC machining can benefit from economies of scale. Producing more parts in a single batch can reduce setup costs per part, thus lowering the overall cost.
  • In-house vs outsource:

    Too expensive, and it’s worth considering whether you have. Too cheap, and it’s worth considering, can they offer the price that they are offering because they are putting on quality? In such a case, our advice would be to do some research on the company’s reputation, and look through reviews or directly get in touch with them.

  • Get an estimate: Prepare for the machining process by sending your initial drawings to get a pre-service quote then seek their advice. Often they will be able to point out areas that could be improved on or modified to reduce unnecessary costs.

 

Estimate the cost of your CNC part

How much will your CNC part cost to make? Upload your 3D CAD on our instant quote tool, choose a technology, material, and surface finish to get a free quote. To start machining, simply click “place order” in the check out area, to place your order with us online. Alternatively, for personalized assistance, submit your inquiry and project details HERE, and an expert from our team will promptly get back to you.

CNC machining remains one of the most cost-effective methods for on-demand production to date despite advancements in technologies like 3D printing. You cannot undermine its usefulness in machining materials like metals. However, a few clients could find CNC machining cost calculation quite difficult due to the involvement of various factors.

Do you belong to the category mentioned above? This article will demystify the factors that machine shops consider before determining the costs. It will also give useful tips on how to reduce these costs to suit your budget. Read on to the end to find out more about these useful tips.

What Determines CNC Machining Cost?

Before you can understand how to reduce your CNC machining cost, you must understand the different factors that contribute to the prices. Below are a few factors machinists consider in their CNC machining cost calculation:

1. Material


This is a very important factor that machinists consider when doing the CNC machining cost calculation. As CNC machining is a subtractive process, it tends to use more material than what will be on the final product. Machinists buy these materials in blocks, and they calculate the prices per block. The two types of materials used mostly in CNC machining are metals and plastics. Let’s take a closer look at both of them:

–    Metals

Aluminium 6061 block

The common types of metals used in CNC machining include Aluminium 6061, Stainless Steel 303, and Brass C360. Machinists use aluminium 6061 the most due to its blend of economical price and good machinability. Stainless Steel 303 and Brass C360 offer a higher degree of machinability and cost more as a result. You can use our quoting platform to know more about how we factor material costs into your CNC costs.

–   

Plastics

ABS Plastic block

Plastics are cheaper to use for CNC machining due to the lower average price for the bulk materials and the shorter machining times due to their lower hardness. Plastics like ABS, Nylon 6, and POM (Delrin) have approximately the same bulk costs as Aluminium 6061, although they might cost a little higher per block. Plastics like PEEK are really expensive and should only be used when absolutely necessary.

2. Machining Cost

Machining Costs

The machining cost depends on the type of machine. The two main types of machines used in CNC machining are mainly: 3-axis machines and multi-axis machines. In Europe, the 3-axis machines cost around $35-$40 per hour while the multi-axis machines cost around $75-$120 per hour. However, you can get these for way cheaper with Chinese companies like RapidDirect, which offer $8-$10 for 3-axis machines and $30 for 5-axis machines.

Machining costs also depends on two factors: the price of the machine and the number of hours the machine is expected to operate in a year (which is 5000 hours on an average). The machinists divide the machine’s price by the number of hours it will operate in a year to determine their machine shop rates (also known as the machining cost per hour).

Some clients also use machining cost estimator apps to estimate the cost for their projects. At RapidDirect, we have an instant quoting platform which has this function. With our machining quote calculator, you can get your quotation in a few minutes.

3. Labor

Due to a large amount of automation involved in the CNC machining process, you do not have to pay for a large number of staff members. The main labor costs are for design and digitalization. The labor costs for CNC manufacturing processes are mainly divided into three:

–    Programming

CNC designing

This part of the labor costs is the most expensive because it involves design and digitalization costs. You need to outsource your product for a designer to make into a CAD file. You can bypass this by doing it yourself. Next is the manufacturing engineer who checks your design for reproducibility and gives suggestions on making it better. The last person is the programmer who converts the CAD file into a CAM file to help the CNC machine understand the design. All this expertise will come at a price.

–    Set up

This part involves the machine operator. He spends time setting up the machine for a custom CNC job and making sure that everything is performed in a manner that results in a great result. The cost of set up depends on the quantity of the parts to be produced. For bulk parts production, the cost per part is lower as it spreads over the larger number of parts.

–    Post-processing

After production, your production will require some assembly and transportation to your desired location. These processes will involve some manual labor which incurs additional costs.

4. Others

Some other additional costs involved in CNC machining include:

–    Tooling

Some custom CNC fabrications might require the machine shop to purchase special tools bits for its production. Although the tool bits will stay in the machine shop after production, you might have to pay a part of the machine costs. This is because the tool could wear during production, especially if the raw material has a high level of hardness.

–    Surface Finish

Bead blast finish

Surface finishes improve the appearance and resistance of CNC machined parts to harsh environments. Although they are advantageous, they increase the machining costs.

All these factors are considered when processing CNC machine cost calculation. To know how you can further reduce these costs, you should see the next section.

How to Reduce CNC Machining Cost

Most times, after estimating CNC machining cost calculations, CNC machining could cost clients a little bit on the high side, especially if they do not make huge quantities of products. Here are a few ways you can adjust CNC machining costs to fit your budget:

1. Reconsider Material

The material you’ll use for your product is a huge determinant in CNC machining costs. You should consider the price of the material before choosing it for the production process. Also, the machinability of the material is very important. This determines the machining time, which in turns, affects the CNC machine shop hourly rates for your production process.

 2. Optimize Design

The design for the manufacturing process is also a very important factor in CNC machining cost calculation. The complexity of your design determines the length of the machining times, which, in turn, affects the costs. To minimize the complexity of your design, you can consider the following questions before sending the design for quoting:

–   Is my part optimized using the Designing for Machinability guidelines?

–   Are all features in my model necessary? Can I remove or simplify any of them and still retain full functionality of my part?

–   Can my design be split into multiple parts that are easier to CNC machine and then assembled?

–   Is there a way to modify my design to eliminate the need for multiple machine setups or special tooling?

–   Is there a less expensive or easier to machine material that can fulfill my design requirements?

You can also get professional design recommendations from us at RapidDirect. We have a team of 150 engineers ready to help with any part of your production process.

3. Outsource Your Need

Outsourcing your project is another great way you can get to minimize your CNC machining costs. However, outsourcing projects to CNC machining companies in developed countries is extremely expensive. Companies in China, on the other hand, offer quite cheaper prices with just the same level of quality. We compiled a range of prices in the two regions below:

–   Price in Developed Countries

European CNC machining prices are generally higher due to the higher standards of living in these parts. Their prices generally range from $35 – $40 per hour for 3-axis machines while multi-axis machines cost $75 – $120 per hour.

–   Price in Asian Countries

Chinese companies are known for their very affordable CNC machining prices which makes many clients all over the world outsource to companies in this region. A good example of a Chinese company that assures quality and still gives affordable prices is RapidDirect. We offer a range of $8 – $10 for 3-axis machines and $30 for multi-axis machines.

Upload your files and get started with RapidDirect today!

RapidDirect: Your Ideal Solution for CNC Machining

RapidDirect home page

Do you worry about how to get good CNC products manufacture at affordable prices? Or you’re not acquainted with the CNC process, and you want a company that can deliver top-notch products? At RapidDirect, we provide you with top-tier CNC machining processes.

With us, your CNC machining cost calculation is a piece of cake. You get your quotation almost instantly thanks to our instant quoting platform. Within 12 hours, we analyze your design and send feedbacks.

In terms of manufacturing, RapidDirect has built a coordinated system comprising feedbacks and in-time progress communication. With this, you can be assured, we’ll deliver your products on time and with high manufacturing quality.

FAQs

Q: Is CNC machining expensive?

A: The price of your CNC machining projects depends on the product’s complexity and the number of parts you want to make. For example, if you’re making a part that has a combined machining and material cost of $2 and a setup cost of $200, one part will cost $202. However, if you make 200 parts, each would cost $3!

Q: What is the best material to use for CNC machining?

A: The best type of material to use for CNC machining depends on the product you want to make. For example, if you need an affordable material and has good machinability, Aluminium 6061 is the best pick. However, if you need a metal higher machinability and do not mind the price, Brass C360 is the best metal.

Q: How much does CNC machining cost?

A: The cost of your CNC machining projects is not fixed as it depends on the characteristics of your project such as the design, tolerances. Machining times of the material to be used in the project also contributes to this pricing.

Conclusion

Making your CNC machining costs affordable should not be much of an issue once you follow the tips mentioned above. At RapidDirect, we can offer even more affordable deals by giving quotations that are 30% lower than the average of competitors. Get your instant quote today!  

How to calculate CNC machining costs?

Calculating CNC Machining Cost: All Factors and Tips You Must Know