Quoting a CNC machining job means estimating the real cost of making the required parts, then setting a selling price that reflects your business goals. A reliable quote should account for more than cutting time: material, setup, machining, inspection, outsourced work and overhead can all affect the result.
1. Review the RFQ and drawing
Before estimating, confirm the part revision, material grade, quantity, tolerances, surface finish, inspection requirements, delivery date and any customer-supplied material. Identify unclear specifications before committing to a price. A tight tolerance or special finish can change the process plan significantly.
2. Estimate raw material requirements
Choose the starting stock size and calculate material consumption per part, including sawing allowance, workholding stock, expected scrap and usable yield. Include purchasing minimums or special material charges when applicable.
For this example, assume 50 good aluminum parts at an estimated $18 material cost per good part, including normal allowance. Total material cost is $900.
3. Separate setup time from machining cycle time
Setup includes activities such as fixture preparation, tool changes, program verification and first-part adjustment. Cycle time is the repeatable processing time for each part. Treating setup as if it repeats on every unit can overstate the quote; forgetting setup can understate small-batch jobs.
Machining cost = Good-part quantity × Cycle hours per part × Applicable machine rate
Assume 3 hours of setup at $70/hour and 18 minutes of CNC machining per part at $70/hour. Setup costs $210. Machining costs 50 × 0.30 × $70 = $1,050.
These example rates are illustrative, not industry-standard rates. Your machine rate may already include operator labor, depreciation, utilities or certain overhead costs; avoid charging those twice.
4. Include secondary operations and quality requirements
Deburring, washing, finishing, heat treatment, inspection, packaging and outside processing may be necessary to deliver an accepted part. Estimate them separately when they are not already covered by the machine rate or process time.
For this example, allow $200 for finishing and inspection and $140 for additional allocated manufacturing overhead.
5. Worked example: CNC quote for 50 parts
| Cost component | Batch cost |
|---|---|
| Raw material (50 × $18) | $900 |
| Machine setup (3 hours × $70) | $210 |
| CNC machining (50 × 18 minutes × $70/hour) | $1,050 |
| Finishing and inspection | $200 |
| Allocated manufacturing overhead | $140 |
| Total estimated manufacturing cost | $2,500 |
| Estimated manufacturing cost per good part | $50 |
This is a simplified example assuming 50 accepted parts and no extra material losses beyond the allowances already included. Actual quoting should account for expected yield, rework risk, special tooling, logistics and other job-specific costs.
6. Convert manufacturing cost into a selling quotation
Manufacturing cost is not the same as selling price. Your final quotation may need to recover commercial expenses and provide profit. Be precise about whether your company uses markup on cost or gross margin on selling price.
Selling price with 25% gross margin = $2,500 ÷ (1 − 0.25) = $3,333.33
For the 50-part example, these correspond to $62.50 per part at 25% markup or approximately $66.67 per part at a 25% gross margin target. Neither approach automatically accounts for taxes, freight or contractual terms; address those explicitly.
7. Common CNC estimating mistakes
- Quoting from machining time alone and omitting material or setup.
- Using minutes as hours when multiplying by an hourly rate.
- Applying an outdated machine-hour rate.
- Ignoring tight tolerances, inspection and outside finishing.
- Double-counting labor or overhead already included in machine rates.
- Confusing markup with margin.
- Failing to revisit assumptions when order quantity changes.
8. Make the quotation process more consistent
Consistent estimates start with a repeatable process list, clear time assumptions and up-to-date rates. Document what is included and excluded, especially for complex or changing RFQs. For a deeper look at the underlying cost calculation, see our manufacturing cost per unit guide.
CostRich is standalone Windows desktop software for manufacturing costing and customer quotations. It helps organize processes, rates and costing calculations without requiring a full ERP system. Explore machine shop and CNC costing or the RFQ and job costing workflow.
Frequently asked questions
How do you estimate CNC machining cost per part?
Add material, allocated setup, cycle-time machining, relevant secondary operations and manufacturing overhead; divide the total by the expected number of good parts.
Should CNC setup be charged per part?
Setup is typically a batch-level cost. Allocate it across the batch when calculating unit cost; smaller batches therefore carry more setup cost per part.
What is a typical CNC machine hourly rate?
There is no single reliable rate. It depends on the machine, labor assumptions, utilization, location and which indirect costs are included. Use a documented rate based on your own operation.
What is the difference between markup and margin?
Markup is calculated as a percentage of cost. Gross margin is calculated as a percentage of selling price. The same percentage produces different prices.
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