Machine Hourly Rate Calculator
Roll depreciation, labor, overhead, maintenance and power into one defensible hourly rate for every machine.
Cost per Hour
$63.00
Sell Rate
$84.00
Annual Cost
$125,500.00
Depreciation / hr
$11.00
Machine Rate = (Depreciation + Labor + Overhead + Maintenance + Power) ÷ Annual Run Hours
What is a machine hourly rate?
It is what one hour on a given machine costs you to own and run, including depreciation, the operator, allocated overhead, maintenance and power. Quoting below it means the job loses money even when it looks profitable on material.
Why does every machine need its own rate?
A five-axis and a manual lathe do not cost the same to own, staff or maintain. Using one blended shop rate overcharges the cheap work and undercharges the expensive work, which is how shops end up busy and unprofitable.
Should labor be in the machine rate?
If an operator is tied to the machine while it runs, yes. If one person tends four machines, split the burdened wage across them rather than charging it four times.
How often should the rate be updated?
At least annually, and any time run hours, wages or power costs move materially. Run hours matter most: the same annual cost over fewer hours raises the rate on every quote.
See how WorkCell tracks this automatically.
Stop gathering the inputs by hand. The numbers come off the floor as the work happens.