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# Cost Calculation Method

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## Cost Calculation Method

(OP)
Hello guys,

Well i'm trying to find out how you calculate the machine costs, I mean, how much you spent on cutting a piece?

I have one method, that was gave to me by the machine manufacturer, but this method has a lot of fails, and I can't get a constant cost with the one they gave (the software that gives me the costs is Radan from Vero).

So , can you help me guys?

Thank you in advance :P

"Nothing is true, everything is permitted."

### RE: Cost Calculation Method

The forumula I is cost of material + time to cut (@whatever rate)
You can work out how much the material costs my geting the cost of the sheet then the utilisation percentage.

### RE: Cost Calculation Method

(OP)
Thank you Evans, for your answer, but the rate will make your cutting time, so how much do you consider the cost of the machine working 1 hour ?

"Nothing is true, everything is permitted."

### RE: Cost Calculation Method

We charge £90-100 an hour as standard. As the priority of our machine is cutting jobs for ourselves. The actual use of gas and eletricity is maybe £10-15 an hour. We use an Amada FOM-4222NT.
I set up a simple excel spreadsheet. All you have to enter then is how long it takes to cut, how much the material is and how much of it uses.

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