Laser Cutting Cost: Optimize your Project Price

“Laser cutting cost depends on various factors, such as cutting material, laser power,  production volume, required accuracy, and more.” 

The overall price of any manufacturing process directly affects the decision-making and economic feasibility of the manufactured part or product. Similarly, the laser cutting cost also decides whether it is feasible for your project or not. However, the price also varies depending on the specification of the particular laser design and other requirements

Furthermore, we will discuss the different cost factors of laser cutting with an example of cost estimation or calculation.

Are Laser Cutting Chrges Lower than Other Cutting Methods?

Before diving into the cost factors and estimation, let’s compare the pricing of laser cutting to other types of cutting techniques like water jet, shear cutting, and plasma cutting. Typically, laser cutting charges can be more expensive than conventional cutting techniques. So, we also need to consider the precision value offered by laser cutting while comparing the cost. 

Table: Cost Comparision of Different Cutting Techniques 

So, the precision of laser cutting and other advantages justify the slightly higher laser cutting cost than other methods. Moreover, laser cutting is necessary when complex shapes or cuts require tight tolerances.

Related: Laser Cutting Sheet Metal: Techniques, Materials, and Applications

Laser Cutting Cost Factors

Laser cutting costs are the cumulative cost of materials, tooling, & Laser cutter, and the precision level of required parts or products. Thus, several factors contribute to the per-hour laser cutting rates or laser cutting project prices. These factors are as follows: Which materials are you using? What is the required laser power? What are the specified tolerances in the laser cutting design? And what is the project’s complexity?

Now, let’s discuss the laser cutting cost factors individually;

1. Material Type

The first factor is the type of materials and thickness: hard materials like titanium, tool steel, or composites require more laser power. Meanwhile, the difficulty also increases with the worksheet thickness. The cutting speed also varies on the hardness and other mechanical properties. 

Next, the material cost itself is a big contributor to the cost of any laser-cutting parts or products. The higher the material cost, the higher the cost of laser-cut parts.

2. Design Complexity and Tolerances 

Processing complex CAD models for laser cutting also significantly increases costs, such as fractal contours, special features, and interlocking mechanisms. Two main causes are behind this: longer processing time and the use of advanced tooling & machines. Similarly, achieving tight tolerances demands expert operators and precise CNC lasers.

3. Labour Cost

Although CNC laser cutting is an automatic and computer-controlled process, engineers and operators still need to set up, handle, and monitor the process. So, its labor cost is one of the crucial factors, and it might vary on geographical location and the particular service provider you collaborate with.  For example, labor costs in USA and Europe are significantly higher than in countries like China.

4. Production Volume 

The number of parts you need also impacts cost efficiency. The high-volume production reduces the cost per part due to economies of scale. The tool setup, CNC programming, and material preparation costs are spread over many items in large runs. Consequently, bulk purchasing material for large volumes also helps reduce the overall laser cutting charges.

How to Calculate Laser Cutting Costs?

The laser cutting cost can be calculated in two ways;

• Per/hour laser cutting rate
• Per part cost 

In the per/hour laser cutting cost, the cost of material is excluded and all other cost fractions are added to get a cumulative value; For example, the machine cost of one hour, operator cost, quality control cost, and overhead costs. So, the machine capabilities and operator experience heavily affect the pe/hour rates.

On the other hand, per part cost of laser cutting refers to how much money will be required to manufacture a part, everything from material cost to post-processing & shipping. This is calculated by dividing the project’s total cost by the total number of parts.

Example of Laser Cutting Cost Calculation

Since we know how to calculate laser cutting costs, let’s take an example of estimation with real-world application. 

• Application: Cutting copper sheets for Electronic circuit boards 
• Material: Copper FR-4 
• Size: 18 cm x 15 cm
• Thickness: 1.5 mm
• Tolerance: ± 0.15 mm 

Per/hour Laser Cutting Rate

To cut the copper sheet of thickness 1.5, a fiber laser of   2 to 4 kW range. Meanwhile, an expert operator is needed for the required tolerance of ± 0.15 mm. For this project, the pr/hour cost will be as follows;

Table: Per-hour Laser Cutting Cost Example

Per-Part Laser Cutting Cost

For per-part calculation, let’s consider the production volume of 2000 pieces. Considering the moderate speed of the fiber Laser cutter, the time to cut one circuit board will be about 20 sec, including the machine downtime between the cycles. 

The total cost will be as follows; 

= Material cost + setup cost + total machining time(hr)  x per/hour rate + overhead costs

= $2/per part x 5000 + 100+ (5000 x 20 sec) x 100/hr + Total of 10%

= $10,000+ $100 + $277.78+ total of 10%

=$10,377.78+ $1037.78

= $ 11415.56

Next, the per-part cost of the electronic circuit plate will be  = $ 11415.56/5000= $2.28/part

(Note: the above example calculations illustrate the cost factors and estimations procedures; the actual laser cutting prices depend on the market trend and particular laser cutting project.)

Should I Buy a Laser Cutting  Machine or Outsource the Services?

It is a tricky decision; the answer depends on the production volume you wish to produce and the technical resources available. It is better to buy a laser cut machine to produce multiple designs in significantly large volumes. Mass production can justify the laser cutting rate with high upfront costs in the long term. Next, you need other resources to operate the machine like expert engineers & operators, space for machine installations, market resources for material and machine maintenance, etc. Lack of expertise in handling can pose the risk of Laser Cutting defects on worksheets.

On the other hand, online laser-cutting services are ideal for startups and small to medium-sized companies that do not need parts in high numbers and don’t want to tackle the hurdle of handling and quality control. They can collaborate with other manufacturing firms to leverage their technology experiences and low prices.

ProleanTech is a China-based manufacturing company with more than a decade of experience providing CNC Laser Cutting Services across all industries. We have advanced CNC laser cutters with a real-time monitoring system to meet your requirements and design specifications. You can request a quote to know the laser cutting cost of your design. We will back to you with a detailed and accurate estimation.

Key Takeaways:

1. Precision vs. Cost: Laser cutting is particularly valued for its precision, which may justify a slightly higher cost compared to conventional cutting methods like shear cutting or waterjet cutting.
2. Thickness vs.Cost: Material type and thickness heavily influence laser cutting costs. Harder materials and greater thicknesses require more power and time, increasing costs.
3. Cost Components: The total cost of laser cutting includes material costs, setup fees, operational costs, and labor. Consider these factors while estimating the laser cutting cost.
4. Budgeting: Understanding how to calculate laser cutting costs helps with project planning and budget management. 

FAQs

Is the laser cutting expensive?

Laser cutting is cost-effective for precise, intricate cuts, especially for high volumes. 

What factors determine the laser cutting costs?

Laser cutting costs are determined by material type and thickness, cut complexity, production volume, and operation speed. 

How much does a laser cutting machine cost?

The cost of a laser cutting machine depends on the laser power (kW) and tolerance capability, from $ 5000 for a desktop to a simple model to over $1 million for a large industrial grade. However, a small 8 kW laser cutter can cost around $20,000 to 30,000.

What are the typical laser cutting rates for stainless steel?

Laser cutting rates for stainless steel typically range from $75 to $200 per hour. They vary on the machine’s power, material thickness, and complexity.