COST CONTROL

Machine vs Person Hourly Cost: What Each Productive Hour Costs

What does an hour of machine time or labour cost you? Adjust the inputs in this calculator to estimate each cost separately, then use real production data to check your quotes.

The Production Cost Balance

People and machines have different hourly costs. Move the sliders to compare their annual costs and productive hours. The sum is a simplified combined hourly cost for one person plus one machine.

Person Hourly Cost

32.000 €
1.550 h

Machine Hourly Cost

72.000 €
3.600 h

Labour Cost

20.65€/h

Machine Cost

20.00€/h

Combined Hourly Cost (One Person + One Machine)

40.65 €/h

Use matching productive hours and cost periods. This estimate is not a complete job quote: material, overhead and job-specific costs may still apply.

How to Use These Estimates

Hourly costs can help compare jobs, quotes and equipment choices. Check the inputs against your own accounts and time logs first.

Production Planning

Compare the cost per unit on each feasible machine, including cycle time and changeovers. Then check deadlines and available capacity before prioritising jobs.

Cost-Aware Quotes

Use machine and labour cost together with materials, overhead and the hours each job actually needs. Add a pricing margin separately; this calculator alone does not set a selling price.

Investment Decisions

Compare the full cost and productive capacity of existing and proposed equipment. An hourly cost saving alone does not establish payback: include purchase cost, maintenance, demand and utilisation.

Related Template: Line and Machine Costing

The line and machine costing template tracks effective hours and costs by resource and calculates product margins from your own inputs.

FREE TEMPLATE

Hourly Cost Calculator (Excel + Guide)

The spreadsheet and guide are in Spanish and English; the product page is currently in Spanish.

Get the free template (Spanish page)

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The template I use for this

Take the calculation further by costing each line and product reference using effective hours and a margin traffic light. The e2b Line & Machine Costing template includes a pre-filled factory example and a PDF guide in English and Spanish.

See the line costing template

Summary and Next Steps

Common Mistakes to Avoid

  • Putting labour and machine costs into one unexplained overhead rate.
  • Using scheduled hours instead of actual productive hours.
  • Leaving depreciation, energy and other inputs out of date.

Metrics That Matter

  • Labour cost (€/h) and machine cost (€/h).
  • Cost per unit (€/unit): Combine cycle time and the relevant resource costs.
  • OEE (Overall Equipment Effectiveness): If you measure it, use it to refine productive machine hours.

Illustrative example

Suppose a workshop finds that its estimated combined hourly cost differs from the rate used in its quotes. It can review the inputs and test new quotes using job-specific data. This is an example, not a measured client result.

Your Action Plan

  • Today: List the annual costs of a key machine and one representative role.
  • Within 7 days: Estimate productive hours for each, excluding downtime, leave and other non-productive time.
  • Within 30 days: Review a new job quote using the combined hourly cost and any other direct or indirect costs. Does the price cover them?