What is a machine hour rate?

What one hour of a machine costs you to run: its share of the loan or depreciation, power, maintenance, tooling, floor space and the operator. Divide a month's total by the hours the machine really works.

Why is the price lower for a bigger quantity?

The setup is done once per batch, so a bigger batch spreads the same setup cost over more pieces.

Should I quote before or after GST?

Quote the price and state that GST is extra at the applicable rate. The GST calculator works out the tax and the total.

Part cost and quotation calculator for job work

Raw material per piece (kg)From the Steel weight calculator: the bar or plate you cut, not the finished part.Material rate (₹ per kg)Scrap and cutting loss (%)Machine time per piece (min)Machine hour rate (₹ per hour)What one hour of that machine costs you, with the operator.Setup time for the batch (min)QuantityOther costs per piece (₹)Heat treatment, plating, tooling, packing, transport.Overheads (%)Profit margin (%)

Price per piece: ₹283.52
Material: ₹118.13
Machining: ₹100.00
Setup, per piece: ₹6.00
Other costs: ₹0.00
Overheads: ₹22.41
Your cost: ₹246.54
Profit: ₹36.98
Batch of 100: ₹28,351.81

Before GST. A larger batch spreads the setup over more pieces, so the price per piece falls.

How it is worked out

Material = raw weight × rate per kg × (1 + scrap %).
Machining = machine minutes ÷ 60 × machine hour rate. Setup per piece = setup hours × rate ÷ quantity.
Cost = material + machining + setup + other costs, plus overheads. Price = cost + profit margin.

Questions

What is a machine hour rate?: What one hour of a machine costs you to run: its share of the loan or depreciation, power, maintenance, tooling, floor space and the operator. Divide a month's total by the hours the machine really works.
Why is the price lower for a bigger quantity?: The setup is done once per batch, so a bigger batch spreads the same setup cost over more pieces.
Should I quote before or after GST?: Quote the price and state that GST is extra at the applicable rate. The GST calculator works out the tax and the total.

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Results use standard formulas and typical values. Use them for estimating and planning; check critical figures against the drawing, the material certificate or the maker's data.