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Machined part cost calculator: the price, line by line

Short answer: the price of a machined part is the material, plus the cost of each operation, plus scrap, then overheads and margin. For an aluminium housing costed by RFQdecoder, that gives €22.62 (price as of 5 October 2026) per part at 200 parts. Replace the lines with those of your quote to see how the price builds up.

By the RFQdecoder team · updated 5 October 2026

The costing linesPre-filled with the real costing of housing BTC-120-80-45
RFQDECODER · PART PRICE€ EXCL. VAT
Your part
Material and operations€17.70
+ Scrap€0.25
= Production cost€17.95
+ Overheads€3.59
+ Margin€1.08
Part price, excl. VAT€22.62
Cost it from your drawing

What is the formula for the price of a machined part?

Production cost = (material + Σ operations) × (1 + scrap)
Price excl. VAT = production cost × (1 + overheads) × (1 + margin)
where each operation = time × workstation hourly rate + setup ÷ batch size

The hourly rate of each workstation is built separately: see the machine hour rate calculator.

What is the price of the example part, line by line?

Sensor housing BTC-120-80-45, 6082 aluminium, 120 × 80 × 45 mm, 0.697 kg finished, 200 parts:

StepMachineTimeCost
I start from a 125 × 85 × 50 mm block of 6082 aluminium (1.43 kg)material purchase€7.72
I cut the blank on the band sawband saw1.6 min€1.58
I machine the first face and the 96 × 56 mm pocket, 30 mm deep (setup 1 of 2)3-axis machining centre2.0 min€2.34
I flip the part and machine the second face (setup 2 of 2)3-axis machining centre2.0 min€2.42
I drill 7 holes, tap 4 × M5 and ream 2 × Ø22 H73-axis machining centre2.6 min€2.84
I deburr and inspect the partdeburring station0.5 min€0.80
Scrap 1.4%€0.25
Overheads 20%€3.59
Margin 5%€1.08
Part price, excl. VAT€22.62

Not included in this price: dedicated tooling, subcontracted clear anodising, shipping.

How much does the part cost by quantity?

Sensor housing BTC-120-80-45, aluminium (prices as of 5 October 2026, daily material quotes)

Fixed order costs

Paid once, whatever the quantity.

  • Machine setups: 90 min (saw 8 min, machining centre 80 min, deburring 2 min): €130.05 excl. VAT (overheads and margin included)
  • CNC programming and dedicated fixture: not included in this example. They depend on the part and the shop (1 to 8 hours of programming depending on complexity, according to a published guide).

Variable price per part

  • Material: aluminium block 125 × 85 × 50 mm, €7.83
  • Manufacturing time: 8.8 min per part
  • €21.97 excl. VAT per part (material, machining, inspection, scrap, overheads and margin)

Unit price by batch size

= variable price + fixed costs ÷ quantity

QuantityUnit price
1 part€152.03
10 parts€34.98
50 parts€24.57
200 parts€22.62
1,000 parts€22.10

Beyond a few dozen parts, the price tends towards the variable price: the fixed costs are amortised. If the part needs long programming or a dedicated fixture, small batches rise accordingly. Prices follow daily material quotes.

From 50 to 1,000 parts, the unit price drops by €2.47: setups are spread over more parts.

Why do overheads apply after scrap?

The order of calculation changes the result. In the RFQdecoder breakdown, the production cost comes first: material, operations, then scrap. Overheads (20% on the example) apply to that production cost, because the shop must cover its structure on everything it produces, scrapped parts included. The margin (5%) finally applies to the total including overheads. On the example: €17.70 of material and operations, €17.95 with scrap, €21.54 with overheads, €22.62 (price as of 5 October 2026) with the margin.

How to compare this calculation with a quote you received

  • Replace the lines with those of the quote when the supplier details them: the calculator then shows how scrap, overheads and margin stack up.
  • If the quote only gives a unit price, compare it with the rebuilt price: a large gap points to an item to discuss (hourly rate, cycle time, blank, tooling amortisation quantity).
  • Check the scope: a quote that includes surface treatment or shipping cannot be compared with a price that excludes them.

How to reduce the price of a machined part

  • Remove a setup: on the example, each of the two setups costs about €2.38.
  • Group orders: €24.57 at 50 parts, €22.10 at 1,000 parts.
  • Keep tight tolerances for functional features: an H7 bore needs one more operation than a drilled hole.
  • Adjust the blank: the starting block is paid by the kilo, chips included.

Which information on the drawing drives the price?

  • Material and grade: they set the price of the blank per kilo and the cutting conditions, hence the time of each operation.
  • Overall size: it decides the blank (bar, block, thick plate) and the machine that can take it.
  • The number of machined faces: each face that needs a flip adds a setup, with its adjustment and clamping.
  • Tolerances and surface finish: a tight dimension or a fine roughness adds a finishing pass, sometimes a dedicated operation and a longer inspection.
  • Repeated features: holes, threads, counterbores. One by one they cost little; many of them form a visible line, like the holes of the example part.
  • Surface treatment: anodising, zinc plating, painting. It is costed separately, often by a subcontractor, and must be named in the quote.

Frequently asked questions

Add the material and the cost of each operation (time × hourly rate, setups divided by the batch), add scrap, then overheads and margin, each as a percentage of the running total.

In the RFQdecoder breakdown, overheads apply to the production cost including scrap, then the margin applies to the total including overheads. On the example: €17.95, then €21.54, then €22.62 (price as of 5 October 2026).

Setups and preparation are spread over more parts. On the example, the same part costs €24.57 at 50 parts and €22.10 at 1,000 parts.

Surface treatment, dedicated tooling and shipping. They should be named, even when they are not included.

Yes. Scrapped parts consumed material and machine time; their cost is spread over the good parts. On the example, 1.4% scrap adds €0.25 per part.