The production cost of machining parts and products is crucial to their market competitiveness and economic feasibility. It determines the price of added value to raw material.
How much do CNC services charge? The exact answer varies depending on several factors, including the CNC equipment used, design complexity, ordered batch size, desired precision & finish, labor charges, and overhead costs.
Understanding the breakdown of CNC machining cost calculation and reduction strategies helps you to budget your project properly and find the best offers from precision machining manufacturers.
This article discusses eleven factors that determine the overall cost of CNC machining and provides tips to reduce it.
Is CNC Machining Expensive?
Price of machining
Compared with conventional machining processes, CNC machining is expensive, especially for small volumes. The key reasons are the use of multi-axis CNC equipment, higher setup and tooling charges, and the need for skilled labor.
However, CNC machining prices are justified, as the process can produce intricate parts with tight tolerances at a rapid pace. For higher volumes, the per-part cost decreases significantly, and the automation also ensures consistency in machined parts.
Typically, CNC machining costs range from $30 to $200 per hour or more. It is lower for simple 3-axis CNC machining, whereas the cost increases for complex, higher-axis machining projects.
Which Factors Determine the CNC Machining Cost?
Machining costs are determined by programming, machine setup & tooling, material type, production volume, machining time, post-processing needs, precision, and overhead costs.
Let’s elaborate on each of the cost factors of CNC machining.
Programming Cost
CNC programming
CNC systems need a file containing G and M codes, called a CNC program, generated by computer software based on the part’s 3D design. These are the machining commands to dictate coordinate systems, tool/work movement, machining positions, coolant flow, and other machine functions.
The CNC programming cost is higher for complex parts that require multiple operations.
Machine Setup Cost
The program is uploaded to the CNC control unit, and the operator/engineer sets up the machine to prepare it for actual machining. It includes tool installation, work clamping, fixture setting, tool positioning & alignment, calibration, etc.
Machine setup costs are typically charged on a per-hour basis. If setup takes a longer time and is used for small batches, the cost is higher.
Material Cost
cnc machined parts
Material prices are a significant contributor to overall machining costs. It is not only about the cost of raw material, but also about their machinability. Some CNC machining materials are easily machinable, and others require special considerations. So, materials with high machinability further help reduce costs.
Standard machining metals & alloys, high-performance plastics, and specialized composites are generally expensive. For instance, titanium, stainless steel, carbon fiber, and copper are more expensive than materials such as aluminum, PEEK, and Nylon.
The price can also vary by grade for the same material. Therefore, material should be chosen carefully.
Axis Capability and Machining Complexity
3 vs 4 vs 5 axis machining
The types of machines you use also influence the cost. Using large-sized and higher-axis machines is costlier than using 2- or 3-axis machines. Basically, if the machining path is complex, it requires a 4-, 5-, or higher-axis CNC, which drives up the cost.
- 3-axis: Simple (X, Y, Z) axis movement of the spindle
- 4-axis: 3-axis spindle movement, along with rotation of the workpiece (A-axis).
- 5-axis: The tool can shape from any angle, has high flexibility, and intricate machining capability.
Furthermore, it is affected by the machining processes required for material shaping. For instance, per/hour milling cost is higher than lathe turning.
Tooling Cost
Every CNC tool has its own lifespan and must be replaced after a certain number of machining cycles. Tooling cost refers to the price of the tools and fixtures you need. It also differs from one machining process to another. For instance, complex tooling increases the custom CNC milling costs, whereas it is relatively low for drilling.
Production Volume
As mentioned above, setup, programming, and tooling costs are spread over each machined part. It means the per-part machining cost for large batches is more cost-effective than for prototyping or small volumes.
Post-Processing and Finishing Cost
After machining, parts may require post-processing operations such as chamfering, deburring, bead blasting, and polishing. These are used to refine the surface uniformity and achieve smoothness. If your parts need post-processing, it is added to the total cost.
Next, there are many surface-finishing processes, and each costs differently. For instance, machined parts with anodizing, electroplating, and powder coating finishes cost more than those with an as-machined or deburring finish.
Labor Cost
No matter how advanced and automated CNC machines are, they still require skilled engineers and machinists to operate them. Often, the labor cost of CNC machining covers both setup and machining time, and charges are on an hourly basis.
Labor costs vary based on the skill level required to machine your parts and the minimum wage rates in a particular region. For instance, the wages of a skilled 5-axis CNC operator in China and Vietnam are lower than those in the US & Europe.
Quality Control Cost
It is the cost of inspecting for defects, measuring & verifying dimensional accuracy, and assessing whether parts comply with industry-specific standards.
If you need tight tolerances and testing of different performance parameters, CMM machines, 3D scanners, a non-destructive testing set, and other instruments are needed, which are costlier than micrometers and simple gauges.
Logistics Cost
After production and quality verification, machined parts need to be packaged and shipped to the client’s location, for which the logistics cost is considered. It can vary depending on the required inventory space and the shipment distance.
Overhead Cost
These are the indirect costs of CNC machining, including workshop space, lubrication, maintenance, and machine downtime.
Best Practices for Reducing CNC Machining Cost
There are several rules and industry practices for reducing CNC machining costs, including design optimization, process automation, material standardization, and tolerance management.
Let’s look at the six key cost reduction practices for CNC machining projects.
1. Design Optimization
Optimize the engineering design for DFM and reduce the complexity. So, the design can be machined with fewer machining processes and a simple tool path. It also helps to minimize the cycle time.
2. Choose Standard Materials
Specialized materials and their grades are more costly than standard machining metals and plastics, such as aluminum 6061, stainless 304 &316, ABS, Delrin, and PC. Additionally, they offer better machinability and can be processed with regular tooling.
3. Tolerance Management
High-precision tooling with finer passes takes longer to shape the material, increasing CNC machining costs. So, determine the tolerance levels for dimensions, features, and their positions based on the desired functionality and performance; do not set tighter tolerances than required.
General machining tolerances (±0.127mm) are considered most cost-effective.
4. Consider Large Batch Orders
Unless you are in the initial phase of product development and need only a few prototypes for testing, order large batches at once. It helps to distribute tooling, setup, and programming costs over a large number of parts. Additionally, large-volume production also provides higher machining efficiency.
5. Lean Manufacturing Strategy
Lean manufacturing principles and tools streamline the machining process, reducing material waste and machine downtime. You can follow value stream mapping and 5S techniques.
6. Automate the Machining Process
Automate the different mechanisms and movements involved in machining, such as tool changeovers, machine tending, handling & staging, etc. Automation improves efficiency and reduces human input in CNC machining.
Table of CNC Machining Types with Parts and Cost
As mentioned before, machining cost differs depending on what kind of parts you are making and which machining type is used.
Next, the table below gives a general overview of how per-hour cost varies for machining types.
| CNC Machining Type | Typical Cost (~ $/hr) | Example Parts |
| 3-Axis Milling | 35 – 120 | Brackets, mounting plates, enclosures |
| 4-Axis Milling | 50 –150 | Complex gear blanks, rotor plates, and jigs |
| 5-Axis Milling | 75 – 250+ | Impellers, turbine blades, medical implants |
| CNC Turning | 40 – 110 | Shafts, bushings, custom threads |
| Swiss Turning | 80 – 120 | Watch screws, precision pins, micro connectors |
| CNC EDM | 60 – 150 | Fine die cuts, tool steel inserts, hard alloys |
| Micro-Machining | 20 – 50+ | Micro gears, nozzles, and small pins |
| High-Precision CNC | 80 – 200+ | Aircraft fittings, probes, orthopaedic plates |
CNC Machining Tools and Their Costs
Tooling is one of the key factors in CNC machining cost calculation. You need suitable CNC tools to machine your parts, and they wear off after a specific number of cycles, and need to be replaced.
The cost depends on the type of tool, tool material, and coating. HSS/ carbide end mills, ball & nose cutters, drill bits, and turning inserts are less costly than indexable inserts, reamers, thread taps, and boring bars.
Furthermore, if the tools are coated with hard materials like diamond, the cost further increases significantly.
How to Reduce CNC Machining Costs with ProleanMFG?
Reducing CNC machining costs is a systematic approach to cost-cutting at each step of production, while ensuring the desired quality and performance.
Here is how you can reduce CNC machining costs with ProleanMFG.
- Design Optimization for manufacturability
- Selection of materials that are cost-competitive.
- Standarization of the machining process and the use of the right tools
- High automation and repeatability in production.
- Use of lean manufacturing principles to reduce waste and streamline the process.
Summing Up
The price of CNC machining does not depend on a single factor; instead, it is the accumulation of material, setup, programming, tooling, labor, post-processing, quality inspection, logistics, and overhead costs. Based on these factors, the manufacturer typically charges CNC machining price on a per-hour or per-project basis.
Do you want to know how much it costs to convert your design into reality? Upload the design file and request a quote for our custom CNC machining service. Our engineer will review them and provide you with an estimation with a clear breakdown.
FAQs
How much does CNC machining cost per hour?
The per-hour CNC machining costs vary from $30 to $200+; the exact cost depends on multiple factors, including the type of equipment used, complexity & precision, and region.
How to calculate CNC machining cost?
To calculate CNC machining costs, you need to add up machine time, labor, tooling, materials, and overhead.
How much does a machinist charge per hour?
It depends on the wage structure and market of a specific region, and typically ranges from $10 to $100+/hour.
What are the 5 levels of cost estimation?
The 5 levels of cost estimation are rough order, preliminary, budget, bid control, and definitive.
