Working it out
CNC machine hourly rate: how a shop works it out
Updated
A machine hourly rate is the machine's yearly cost plus the operator's pay and the shop's overhead, divided by the hours the machine is actually billed. The parts are simple; the hours are where most rates go wrong.
The four parts of the rate
- The machine: what it cost, spread over the years you expect to use it, plus finance, maintenance and tooling.
- The space and power it uses: its share of rent, rates and electricity.
- The operator: pay plus employer National Insurance and pension, per hour worked.
- The hours: the hours the machine is billed for, not the hours the shop is open. Setup, idle time and maintenance are not billable.
A UK pay figure to start from
ONS's Annual Survey of Hours and Earnings puts median hourly earnings, excluding overtime, for full-time employees at £19.67 an hour in April 2025. A machinist's actual rate varies by skill and region, and employer costs sit on top.
Source: ONS: Annual Survey of Hours and Earnings, April 2025
Check the result against the market
One UK shop publishes a fixed hourly rate from £21.98. If your own figure comes out far below what shops publish, the billable hours are usually set too high.
Source: Parallel Precision: how much does CNC machining cost
This page explains the method; it is not accounting advice.