Calculate your machine shop's required hourly rate. Input overhead costs, labor, machine depreciation, and target margin. Get your breakeven rate and profitable shop rate per spindle hour.
Last updated April 2026
Total annual. E.g. 3 machines x $200k / 15yr = $40,000
% of available hours actually cutting
Add all annual costs: rent, utilities, insurance, labor (loaded with benefits), machine depreciation, tooling, and consumables. Divide by annual productive spindle hours (typically 1,600-2,000 hours per machine after downtime). Add your target profit margin, usually 15-25%. The result is your minimum hourly rate to stay profitable and cover overhead.
Typical US machine shop rates range from $75-$125/hour for standard 3-axis CNC milling, $100-$175/hour for 5-axis work, and $60-$90/hour for CNC turning. Rates vary significantly by region, machine capability, tolerance requirements, and material. Shops in high-cost areas or with specialized capabilities (aerospace, medical) charge at the higher end.