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Method · costing

How a part's price is rebuilt

Short answer: the calculation chain is the one used in a shop quote: a time per operation, a built-up hourly rate, weighed material, tooling spread over the batch, then overheads, margin and freight. Each line shows its formula and status: read from the drawing, or an assumption to confirm.

By the RFQdecoder team · updated 27 September 2026

From drawing to price, in six steps

StepFormulaWhat is shown
1. Reading the drawingdimensions, material, tolerances, quantityAnything unreadable is flagged as an assumption, not guessed.
2. Materialstock volume × density × price per kg + scrapStock, scrap and price per kg, separately.
3. Routing and timesΣ (setup ÷ batch + cycle time)One line per operation.
4. Hourly rate(depreciation + energy + maintenance + tooling + labour) ÷ hoursEach component, editable.
5. Toolingtooling cost ÷ amortised quantityFixtures, holders, special tools, per part.
6. Overheads, margin, freight(direct cost + overheads) × (1 + margin) + freightFreight on its own line.

A published example, step by step

A 2 mm steel enclosure, batch of 25, published by QuoteBuddy. Each line maps to a step of the method.

LinePer partStep
Material and nesting€12.00Step 2
Laser cutting€3.20Step 3
Laser setup, spread€3.60Step 5
Bending€5.00Step 3
Brake setup, spread€1.50Step 5
Welding€13.00Step 3
Powder coating€26.00Step 3
Hardware and assembly€6.40Step 6
Cost per part€70.70

With a 25% margin on price, the enclosure sells for about €94 each: €70.70 ÷ 0.75.

The hourly rate starts from labour cost

A machine rate adds up depreciation, energy, maintenance, tooling and labour. For labour, the starting point is the hourly labour cost in manufacturing, published by Eurostat for 2025:

CountryHourly labour cost, manufacturing
Germany€49.50
France€47.10
European Union€35.00
Italy€32.80
Spain€28.20
Poland€17.10

Machine rates published by QuoteBuddy: fibre laser €90 to €160 per hour, press brake €60 to €95.

Three ways to depreciate a machine

  • Straight-line over the book life: purchase price ÷ (years × working hours). The most common; it gives the lowest rate.
  • Straight-line over productive hours: purchase price ÷ hours actually sold. The same investment spread over fewer hours.
  • Financial: annuity (capital + interest) ÷ productive hours. The only one that shows the cost of money.

The convention is a management choice: it is shown and can be switched in the tool.

Sources

  • QuoteBuddy, “Sheet Metal Fabrication Cost Estimation: The 6 Cost Blocks”, 5 September 2026.
  • Eurostat, “Labour cost levels by NACE Rev. 2 activity (lc_lci_lev), 2025”, 23 April 2026.

Frequently asked questions

Add material (stock, scrap, price per kg), the time of each operation multiplied by the machine hourly rate, setup divided by quantity and tooling spread over the batch, then add overheads, margin and freight.

Depreciation, energy, maintenance, cutting tools and labour, divided by running hours. For labour, Eurostat publishes hourly labour cost by country: €47.10 in France and €49.50 in Germany in manufacturing in 2025.

Setup and tooling are fixed costs: divided over a larger quantity, they weigh less on each part.

The line is flagged as an assumption with the value used; you can correct it and everything recalculates.

Straight-line over book life, straight-line over productive hours, or financial: it is a management choice. The tool shows the one used and lets you switch.

Apply the method to your part

Upload your PDF, DXF or STEP drawing: the six steps, each with its formula, in a few minutes.