Cost Calculator AI
Manufacturing & IndustrialMachine Rate

Machine Hour Cost Calculator

Calculate fully burdened machine hourly rates ($/hour) combining capital depreciation, preventive maintenance, electricity, tooling, and operator wages.

Machinery & Spindle Hourly Cost Audit

Total Machine Rate / Hr
—
machine + operator
Standalone Machine Rate
—
without operator wage
Depreciation Burden / Hr
—
asset write-off
Maintenance Burden / Hr
—
PM & repairs

Machine Hourly Rate Formula

Machine Hourly Rate = (Annual Depreciation + Maintenance + Power + Tooling + Facility) ÷ Operating Hours + Operator Wage
  • Capital Depreciation: Annual asset depreciation write-down per operating hour.
  • Consumables & Tooling: End mills, inserts, coolant, lubricants, filters, and wear plates.
  • Unburdened vs Burdened: Rate without operator vs fully staffed hourly billing rate.

Step-by-Step Worked Example

Scenario: Costing a 5-axis CNC machining center running 2,000 hours per year

Calculation Steps:

  1. Depreciation & Facility = ($25,000 + $2,000) / 2,000 = $13.50 / hr
  2. Maintenance = $8,000 / 2,000 = $4.00 / hr
  3. Electricity = $12,000 / 2,000 = $6.00 / hr
  4. Tooling = $5,000 / 2,000 = $2.50 / hr
  5. Unburdened Machine Rate = $13.50 + $4.00 + $6.00 + $2.50 = $26.00 / hr
  6. Fully Burdened Rate (With Operator) = $26.00 + $28.00 = $54.00 / hr
Result: Unburdened machine operating rate is $26.00/hour. Fully burdened with a dedicated operator, the rate is $54.00/hour.

How to Use This Calculator

  1. 1Enter annual capital depreciation and plant facility/insurance allocations.
  2. 2Input annual maintenance, electricity, and tooling budgets.
  3. 3Enter total machine operating spindle hours per year.
  4. 4Add dedicated operator hourly wage to view fully burdened rates.

Assumptions & Limitations

  • Annual hours reflect actual cutting or running spindle time, not calendar availability.
  • Tooling and coolant wear scales proportionally with run hours.

Frequently Asked Questions

What is the difference between unburdened and burdened machine hour rates?

The unburdened rate covers purely the physical machine (depreciation, power, maintenance, and tooling). The fully burdened rate includes the operator wages and payroll overhead required to run it.

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