Plenty of shops charge $85 an hour because that's what the shop down the road charges. Your costs aren't theirs. Move the sliders to match your shop and see the rate your numbers actually need.
Works for CNC machine hours and for fab and welding hours. Email yourself the result with the full breakdown.
You're about $55.56/hr under, roughly $80,894 a year on this machine.
The machine or equipment price, spread over the years you expect to run it and the hours you bill.
The loaded wage, divided by the share of paid hours you actually bill. Unbilled time still has to be paid for.
Rent, insurance, utilities, software and vehicles, shared across the people on your floor.
Tooling, wire, gas, discs and blades, per hour.
Your margin, as a share of the price you charge.
A perfect rate on a job you quoted at 10 hours that took 14 still loses money. Quotara saves your rates, builds every quote from them, and compares the hours you quoted with the hours your team actually clocked on the floor. You see which jobs made money, and your next quote starts from what the last ones really took.
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Add up what one billable hour costs you: equipment (its price spread over its life), labour (the loaded wage divided by the share of hours you actually bill), overhead (rent, insurance, utilities and the rest, spread across your billable hours) and consumables. Then add your profit margin on top. The calculator above does that math for you.
It depends on your equipment, wages and how busy you are. Many small shops charge what the shop down the road charges, which ignores their own costs. Use your own numbers: two shops charging the same rate can have very different margins.
You pay your team for every hour, but you only bill some of them. Setup, cleanup, quoting, maintenance and slow weeks are all unbilled. If you bill 65% of paid hours, every billed hour has to carry the cost of the hours you could not bill.
Margin is profit as a share of the price. Markup is profit as a share of the cost. A 25% margin is the same as a 33% markup. This calculator uses margin, so a $100 rate with a 25% margin leaves $25 of profit.
A single blended rate is a fine start. As soon as one machine costs much more to own than the rest, like a 5-axis mill or a fiber laser, give it its own rate so the jobs that use it pay for it.