Laser Cutting Cost Center
Professional cost management tools for laser cutting operations. Calculate accurate shop rates, allocate overhead, estimate hidden costs, and optimize pricing strategies.
Shop Hourly Rate Builder
Calculate complete hourly shop rate with depreciation, labor, energy, maintenance, facility, and overhead breakdown.
Overhead Allocator
Allocate overhead costs across multiple jobs using machine hours, labor hours, material cost, or other methods.
Setup Time Estimator
Estimate setup and changeover time based on programming, loading, machine prep, inspection, and batch size.
Piercing Time & Cost Estimator
Calculate piercing time and cost by material, thickness, hole count, and strategy. Identify optimization opportunities.
Kerf Width Reference
Quick reference for kerf width by material, thickness, and nozzle diameter. Essential for path compensation and material planning.
Edge Finishing Time Guide
Estimate deburring, chamfering, and finishing time by material, edge length, method, and quality level.
Quotation Margin Simulator
Simulate pricing scenarios with target margins, payment terms, risk factors, and volume discounts.
Why Use Cost Center Tools?
Accurate Cost Allocation
Many laser cutting shops underestimate true costs by overlooking setup time, piercing overhead, finishing requirements, and proper overhead allocation. These tools help you capture all cost components for accurate job costing.
Data-Driven Pricing
Move beyond gut-feel pricing to structured margin analysis. Understand your break-even points, optimal batch sizes, and how volume discounts impact profitability.
Hidden Cost Discovery
Piercing time can represent 30-50% of total job time for perforated parts. Setup costs can exceed cutting costs for small batches. Finishing can add 50-100% to processing time. Quantify these hidden costs.
Process Optimization
Identify where your shop's costs are highest and find opportunities for improvement. Should you invest in automated deburring? Is nitrogen generation cost-effective? When should you batch orders?
How to Use These Tools
Start with Hourly Rate Builder
Calculate your true shop hourly rate including all cost components. This is the foundation for accurate job costing. Update quarterly or when major costs change.
Estimate All Time Components
Use Setup Estimator for job changeover time, Pierce Estimator for hole-intensive parts, and Finishing Guide for edge work. These "hidden" times often exceed cutting time.
Allocate Overhead Properly
Use Overhead Allocator to distribute facility, administrative, and indirect costs across jobs. Choose allocation method that reflects your actual cost drivers.
Set Pricing with Margin Simulator
Enter total costs and use Quotation Margin Simulator to model different scenarios. Factor in payment terms, risk, and volume discounts to arrive at optimal pricing.
Cost Center Best Practices
Track Actual vs. Estimated
Record actual times and costs for jobs, then compare to estimates. Refine your inputs over time to improve accuracy. Most shops achieve 90%+ accuracy within 3-6 months of systematic tracking.
Update Costs Quarterly
Material prices, gas costs, and labor rates change. Review and update your cost inputs every 3 months, or immediately after major changes (new equipment, wage increases, facility moves).
Don't Forget Hidden Costs
Setup time, piercing, finishing, scrap, rework, and material handling add 30-60% to direct cutting time. Build these into every quote rather than absorbing them as "overhead".
Use Consistent Allocation Methods
Choose one overhead allocation method (machine hours, labor hours, etc.) and stick with it. Consistency is more important than perfection. Review annually to ensure it still makes sense.
Related Calculators & Resources
Laser Cutting Cost Calculator
Complete end-to-end cutting cost calculation with material, power, labor, and gas costs
Equipment ROI Calculator
Evaluate payback period and return on investment for laser cutting equipment purchases
Material Utilization
Optimize nesting and reduce material waste to lower per-part material costs