Job cost calculator
50 parts at A$120 an hour, with a 1.5 h set-up, a 6 min cycle and A$8.50 of material each, cost A$24.10 a part; with 25 % markup they sell at A$30.13. One part alone sells at A$250.63. Enter your shop’s machine-hour rate, the set-up and cycle times, the material, any outside costs, a scrap allowance and your markup for the cost and price a part, the batch price and the machine hours.
The cost a part is drawn against the batch size, and the price break table loads any batch size into it.
- Price a part
- Cost a part
- Set-up a part
- Run time a part
- Material a part
- Batch price, 50 parts
- Margin
- 20.0%
- Machine hours
- 6.50h
How it’s calculated
R the machine-hour rate, ts the set-up (h), Co outside costs, tc the cycle (min), m the material a part, q the good parts and n = ⌈q / (1 − scrap)⌉ the parts started. Price = cost × (1 + markup); margin = markup / (1 + markup). Here: (120.00 × 1.5 + 0.00) / 50 + 12.00 × 50/50 + 8.50 × 50/50 = 24.10; × 1.250 = 30.13.
| Batch | Set-up a part | Run a part | Material a part | Cost a part | Price a part | Batch price |
|---|---|---|---|---|---|---|
| 1 | 180.00 | 12.00 | 8.50 | 200.50 | 250.63 | 250.63 |
| 5 | 36.00 | 12.00 | 8.50 | 56.50 | 70.63 | 353.13 |
| 10 | 18.00 | 12.00 | 8.50 | 38.50 | 48.13 | 481.25 |
| 25 | 7.20 | 12.00 | 8.50 | 27.70 | 34.63 | 865.63 |
| 50 | 3.60 | 12.00 | 8.50 | 24.10 | 30.13 | 1506.25 |
| 100 | 1.80 | 12.00 | 8.50 | 22.30 | 27.88 | 2787.50 |
| 250 | 0.72 | 12.00 | 8.50 | 21.22 | 26.52 | 6631.25 |
| 500 | 0.36 | 12.00 | 8.50 | 20.86 | 26.07 | 13037.50 |
| 1000 | 0.18 | 12.00 | 8.50 | 20.68 | 25.85 | 25850.00 |
Why does a small batch cost so much more a part?
The set-up is paid once whatever the batch: spread over 5 parts it is twenty times what it is over 100. Material and run time are paid on every part, so they stay flat. That is why a quote should give a price for each batch size, and why the set-up time is the first thing to cut when small batches are the work.