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How to work out your laser cutting machine's hourly rate

Your machine-hour rate is the machine's yearly fixed cost — depreciation, floor space, insurance, software, service — divided by the hours you actually bill, plus the running cost of an hour: electricity, assist gas, consumables and the operator. Billable hours matter most: a $200,000 machine written off over five years costs $20 an hour at 2,000 hours a year, and $40 at 1,000. Labour and depreciation are the big items; electricity is a few euros an hour.

6 min read · Updated · By the Zorocut team
Steps
  1. Add up the yearly fixed costs of the machine and the space it takes
  2. Divide them by the hours you can bill in a year, not the hours the shop is open
  3. Add the running cost per hour: power, gas, consumables and the operator
  4. Add your margin, and keep separate rates for nitrogen work and for thick plate

What goes into the rate

ItemHow to work it outA sourced starting point
Depreciationprice paid ÷ years of use ÷ billable hours a yearLapas's example: $200,000 ÷ 5 years ÷ 2,000 h = $20 an hour
ElectricitykW drawn × price per kWha 3 kW Raycus source draws up to 10 kW, a Teyu CWFL-3000 chiller up to 6.5–7.9 kW; €0.18/kWh EU average for businesses using 500–2,000 MWh a year (H1 2026); 9.64 ¢/kWh US industrial (August 2026)
Assist gasm³ an hour × price per m³nitrogen: 20–31 m³ an hour on 4 mm stainless at 3 kW (MM Science Journal, 2018); an on-site generator uses 0.72–0.78 kWh per kg of nitrogen at 300 bar
Consumables, maintenancenozzles, windows, lenses and service from your invoices ÷ hoursLapas's example: $0.75 + $0.50 an hour
Operatorloaded wage: pay plus taxes and benefitsLapas's example: $34 an hour, wage × 1.35
Space and overheadrent, insurance, software and office ÷ billable hoursLapas's example: $6 + $9 an hour

Lapas — a nesting-software vendor, so read it as an example, not a survey — adds these up to $81.75 an hour of internal cost for a 6 kW fiber in the US: labour 42 %, depreciation 24 %, electricity 4 %. It puts US shop rates at $80–180 an hour, most mid-size shops at $100–125. We found no survey of fiber-laser hourly rates; the one real shop table we could read, Aston Precision's in Australia, runs from AUD 200 an hour for thin mild steel to AUD 585 at 25 mm.

A worked example

  • A 3 kW fiber laser bought and installed for €80,000, written off over 7 years, with 1,600 billable hours a year (all three are examples): €7.14 an hour.
  • Electricity: source and chiller at their maximum, 10 + 7.9 kW = 17.9 kW × €0.18 = €3.23 an hour. That is an upper bound for those two; the motion system, extraction and compressor come on top, and a meter on the supply tells you the real figure.
  • Nitrogen from an on-site generator: 25 m³ an hour is about 31 kg (Oxywise counts 0.8 m³ per kg) × 0.78 kWh/kg × €0.18 = €4.39 per beam-on hour in electricity alone, before the generator's own price. For oxygen we found no published price: use your supplier's invoice. See assist gas.
  • Consumables and maintenance €1.25 (Lapas's figure as a placeholder), an operator at €28 an hour loaded (example), and €12,000 a year of space, insurance and software (example) ÷ 1,600 h = €7.50.
  • Total: about €47 an hour of cost on oxygen work and €52 on nitrogen. Your margin goes on top; Zorocut's default rate of €90 an hour is our estimate, not a market figure.

Billable hours decide the rate

Billable hours a yearFixed cost per hour (€23,429 a year)Total cost per hour, oxygen work
800€29.29€61.77
1,600€14.64€47.12
3,200 (two shifts)€7.32€39.80

Bands, not one rate

  • Thickness: Aston's rate for mild steel rises from AUD 200 an hour at 1 mm to 280 at 3 mm, 403 at 10 mm and 481 at 20 mm, as the cut slows and the pierces get longer.
  • Gas: Lapas warns that running heavy stainless or thick aluminium on nitrogen at a blended rate undercharges by $5–15 an hour. Give nitrogen work its own rate.
  • Zorocut uses one machine rate per quote: enter the rate of the band the job falls in. Its per-metre and per-pierce prices follow from that rate — see pricing units.

Sources

  1. Lapas, How to price a laser cutting job (2026-06-01)
  2. Aston Precision, Laser Cutting Cost Estimator (feed, pierce and rate tables)
  3. Raycus, RFL-C3000S CW fiber laser user manual (distributor copy; max. power consumption)
  4. Teyu, CWFL-3000 chiller for 3 kW fiber lasers (max. power consumption)
  5. Eurostat, Electricity price statistics (non-household consumers, H1 2026)
  6. US EIA, Electric Power Monthly, Table 5.6.A (August 2026)
  7. Musil et al., Cutting parameters, surface quality and nitrogen consumption in laser cutting, MM Science Journal 2018
  8. Oxywise, LaserGas nitrogen generator range 2025

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