Shop Hourly Rate Builder

Build a shop hourly rate for laser cutting from machine, labor, power, gas, maintenance, and overhead data. Use the hourly-cost guide for the formula and this page for the editable calculation.

Cost inputs

Equipment

Initial purchase price of laser system

Expected useful life of equipment

Expected billable hours per year

Labor & Energy

Maintenance & Consumables

Facility & Overhead

Assist Gas

Choose based on material and quality needs

Average gas flow rate

Local gas supplier cost

Your Shop Hourly Rate

Total Hourly Cost

$178.80

per operating hour

Rate Context

premium

Your modeled hourly rate is at the high end of the contextual bands used here.

Break-Even Analysis2000 hours/year · 100% utilization

Minimum 2000 hours/year (100% utilization) in this modeled scenario to cover the costs you entered. This example also shows 2400 hours/year as a higher-utilization case you can compare against your own backlog, staffing, and capacity strategy rather than as a universal target.

Detailed Cost Breakdown

Overhead$90.00/hr (50.3%)
Facility$39.00/hr (21.8%)
Labor$33.75/hr (18.9%)
Depreciation$7.50/hr (4.2%)
Maintenance$3.75/hr (2.1%)
Gas$2.25/hr (1.3%)
Consumables$1.35/hr (0.8%)
Energy$1.20/hr (0.7%)
Total Hourly Rate$178.80
Insights & Recommendations5 warnings · 3 review points

Based on your cost structure and the assumptions in this calculator

Warning: Action Required

  • 1

    Labor cost is less than 25% of the modeled hourly rate in this scenario; check that all relevant labor and overhead items are included.

  • 2

    Equipment depreciation is less than 8% of the modeled hourly rate; review your utilization and lifespan assumptions.

  • 3

    Overhead costs are more than 25% of the modeled hourly rate in this scenario.

  • 4

    Facility costs are more than 20% of the modeled hourly rate in this scenario.

  • 5

    Total hourly rate is toward the high end of the bands used in this tool; ensure your pricing and value proposition reflect this level.

Cost review points

  • 1

    Consider increasing machine utilization to improve ROI

  • 2

    Review administrative costs and look for efficiency improvements

  • 3

    Consider optimizing space utilization or negotiating rent

Use this calculator when the search question is hourly rate for laser cutting or laser cutting cost per hour.

Cost Baseline: Results show break-even hourly cost. Add profit margin when quoting based on your market and risk. Compare with your accounting data.

Shop hourly rate calculator

This is the executable hourly-rate companion to the hourly cost guide: collect the cost-floor categories, calculate the shop hourly rate, then send the result into quote margin and laser cutting estimates.

Shop rate result: review the hourly cost, send it to the laser quote calculator, then return to the quote packet.

fiber laser operating cost per hour

Use this calculator after you collect ownership, labor, energy, gas, consumables, overhead, and maintenance cost categories. The support guide keeps maintenance, service, and downtime inputs separate before the result flows into job quotes.

How the shop hourly rate is built

The result combines ownership, labor, energy, gas, consumables, maintenance, facility, and overhead inputs into an hourly cost floor.

Hourly rate = annualized fixed costs / annual working hours + variable cost per productive hour. Each component remains visible in the result breakdown.

Defaults are example inputs. Replace them with current shop records and validate the modeled rate against actual utilization, quotes, and win/loss data.