How to Quote Laser Cutting Jobs: Cost per Part

In short: Quote a laser job from machine time, not part area: machine time × shop rate, plus material, plus setup.

Machine time is cutting, piercing and rapid moves, taken from the nested file. A part with many small holes can take far longer than its cut length suggests, so per-metre pricing often loses money. Calibrate by timing a known part.

The formula

Job cost = (machine time × shop rate) + (material × markup) + setup + admin

Machine time = cut time + pierce time + rapid-move time

Cut time (min) = cut length (m) ÷ cutting speed (m/min)
Pierce time (s) = pierces × seconds per pierce

The Fabricator gives the same core formula for laser run time: inches of cut divided by cutting speed, plus pierces times pierce time, then multiplied by the department's hourly shop rates (source 1). It adds that formulas can grow to include part removal, and that setup is usually divided by quantity. Take cut length and pierce count from your nesting software rather than guessing.

Step 1: build your shop rate

Add up the real cost of one machine hour, then add margin. Quoting on cut time alone can bring in orders that lose money, especially when margins are thin; part costs fall into equipment, job costs such as material and gas, and labour (source 2). Our cost per hour guide sets out each formula, and the calculator does the arithmetic with your own numbers.

Use billable hours, not clock hours. A machine idle for half a shift carries twice the depreciation per billed hour.
Keep separate rates by gas. Assist gas is a job cost (source 2), and it differs by process, so a single blended rate can misprice both. Check your own gas use per hour.

Step 2: calculate machine time

The formula in source 1 counts pierces for a good reason: each one adds machine time. Use pierce times for your own material and thickness. Compare two parts with the same cut length:

	Part A: outline only	Part B: 40 small holes
Cut length	2.4 m	2.4 m
Pierces	1	41
Cut time at 4 m/min	36 s	36 s
Pierce time at 1.5 s each	1.5 s	61.5 s
Total, before rapid moves	37.5 s	97.5 s

Example inputs chosen by Halcyon Laser for illustration. Use your own speeds and pierce times.

On a per-metre price, both parts cost the same, yet Part B takes 2.6 times as long. That is why per-metre pricing alone loses money on hole-heavy work.

Step 3: cost the material by the sheet

Material takes the largest share of part cost in most cases (source 2), so cost it carefully. We suggest working from sheets consumed rather than part area, so that offcut waste is not absorbed silently, and rechecking steel prices on each quote. If you keep usable offcuts, agree a rule for crediting them. Tight nesting and common line cutting improve utilization, so check the nest before you quote.

Step 4: charge for setup

Estimators usually divide setup time by quantity and multiply by the hourly rate, and shorter setups make a shop more competitive on low-quantity runs (source 1). Include program preparation, sheet handling, nozzle and gas changes, first-part checks, and part sorting.

Worked example

100 parts like Part A above, in units of your own currency. All inputs are invented for illustration:

Item	Calculation	Result
Machine time per part	36 s cut + 1.5 s pierce + 22.5 s rapid and handling	60 s
Machine time for job	100 × 60 s	100 min
Machine cost	100 min × 2 units per min (shop rate 120 per hour)	200
Setup	15 min × 2 units per min	30
Material	4 sheets × 300 units × 1.25 markup	1,500
Job total	200 + 30 + 1,500	1,730
Per part	1,730 ÷ 100	17.30

Invented inputs, not market prices. Enter your own in the calculator.

Notice that material dominates this job, as source 2 says it does in most cases. On hole-heavy work machine time takes a larger share. Decide how you apply margin, and do it consistently.

Pricing models compared

Model	Good for	Weakness
Per metre of cut	Quick estimates	Ignores pierces and setup
Per metre plus per pierce	Everyday job-shop quotes	Ignores rapid moves
Machine time from the nest	Accurate quoting	Needs nesting first
Per kilogram	Simple plate parts	Ignores complexity

Summary by Halcyon Laser.

Step 5: calibrate against reality

Time a known part on the machine, and compare it with the software estimate.
Adjust your speed, pierce and acceleration values until they match.
Track actual against quoted time on each job for a month. The aim is to get the estimate as close to actual time as possible (source 1).
Review your shop rate when your utilization or energy costs change.

Then use the cost per part calculator, and ask us for speed data on your materials if you are comparing machines.

Frequently asked questions

How do you calculate laser cutting cost per part?

Add machine time multiplied by your shop rate, material, setup and admin, then divide by the number of parts. Machine time is cutting, piercing and rapid moves from the nested file.

Should I price laser cutting per metre?

Only as a quick estimate. Per-metre pricing ignores pierces and setup, so hole-heavy parts lose money. Quote from machine time when you can.

How do I work out my laser shop rate?

Add labour, depreciation over billable hours, overhead, gas, electricity, consumables and maintenance per hour, then add margin. Keep separate rates for nitrogen and oxygen work.

Why does pierce time matter so much?

Every pierce adds machine time. In our example, 40 small holes made a part take 2.6 times as long at the same cut length, so per-metre pricing would miss it.

Should I charge for material by part or by sheet?

We suggest sheets consumed, so that offcut waste is not absorbed silently, and a clear rule for crediting usable offcuts. Material is usually the largest part of the cost.

Next step

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Sources

Don Clutter, “Estimating basics and quoting jobs in custom metal fabrication”, The Fabricator, 30 August 2023 — www.thefabricator.com (accessed 2026-11-01)
Brett Thompson, Kevin Cuseo, Salay Quaranta, “How sheet metal fabrication shops can unleash laser cutting profits”, The Fabricator, 24 May 2023 (authors from the machine tool supply side) — www.thefabricator.com (accessed 2026-11-01)

How to quote laser cutting jobs: cost per part, step by step