Shop Rate & Machine Rate Calculator

This calculator helps you determine two separate rates that serve different purposes in your pricing:

1. Shop Rate (for non-machine work)

The shop rate covers your fixed overhead costs allocated per hour. Use this rate for:

• Programming and CAD work
• Setup and preparation time
• Material handling and loading
• General shop overhead (keeping the lights on, administrative work)

This rate includes all facility costs (rent, insurance, utilities, other overhead) plus salaries for non-machine work (programming, setup, etc.). The calculator splits salaries based on how much time operators spend monitoring the machine vs doing other work.

2. Machine Rate (for machine operation)

The machine rate covers costs when the machine is actually cutting. This includes:

• Variable costs: Electricity, consumables (gas, nozzles, abrasives), and maintenance
• Operator monitoring time: Only the portion of salaries for time spent actually monitoring the machine
• Profit margin: The markup you need to stay profitable (typically 15-30% for manufacturing)

Important: Facility costs (rent, insurance, utilities) are NOT included in machine rate to avoid double-counting. They're already covered in the shop rate. The machine rate only includes variable costs, operator monitoring time, and profit margin.

This is the rate you enter as the Operating Rate per Minute in NanoQuote. It's what you charge for actual cutting time.

Why Separate Rates?

Separating shop rate and machine rate gives you flexibility:

• Charge shop rate for programming and setup (even if machine isn't running)
• Charge machine rate only when the machine is actually cutting
• Accurately price jobs that require more programming vs more cutting time
• Ensure overhead is covered regardless of machine utilization

Understanding Machine vs Material Rates

In NanoQuote, the machine rate is separate from material-specific rates:

• Machine Operating Rate: What this calculator determines - covers base machine costs
• Material Rate (Price per Minute): Material-specific consumables like assist gases (nitrogen, oxygen) for laser cutting or special abrasives for waterjet. These vary by material type and are configured separately.

Common Shop Rate Ranges

Typical shop rates vary by machine type and region:

• Fiber Laser: $50-150/hour depending on power and overhead
• Plasma Cutter: $40-100/hour depending on amperage and consumable costs
• Waterjet: $60-120/hour due to higher consumable costs (abrasive garnet)

Note: These are general ranges. Your actual rate depends on your specific costs, location, and business model.