C.R. Onsrud – American Made Industrial CNC Machines

C.R. Onsrud Resources

CNC Total Cost of Ownership Calculator

The sticker price is only the start. Compare two machines — or a machine against doing the work by hand — on output, downtime, lifespan, and replacement costs to see what each one really costs — and earns — over time.

What are you comparing machine 1 against?

Machine 1

Machine 2

Today: By Hand

There’s no machine to buy, so the price is $0. In step 2, enter how long one part takes by hand and how many people do the work.

Comparing against another premium machine instead of a budget one? Rename both machines and set the lifespan and downtime in step 3 to what you expect — everything works the same way. You can enter the machines in either order: every label and result on the page follows the names you type.

Cash Purchase Financed

How would you use a faster machine?

Your Operation

What one machine cycle sells for, minus material and consumables.
How many parts each cycle produces (e.g., a nested sheet yields several parts).
Share of operating hours spent running cycles. Setups, changeovers, and waiting take the rest. Applies to both sides of the comparison.
Power, air, maintenance, and tooling wear for each hour a machine runs. Applies to each machine, not to hand work.

Cycle or Takt Time

Hands-on time for one person to make one part the way you do it today, including handling.
Everyone making these parts by hand during your operating hours. The machine needs one operator.

Small cycle-time advantages compound into large differences over a machine's life.

Machine Lifespan ⓘ

Reality check: Heavy industrial machines are commonly kept in production far longer than light-duty machines. The defaults are illustrative — enter what you expect for your shop.

Hand work has no machine to wear out or replace.

Downtime Risk ⓘ

Service & parts: Waiting on parts or a service visit can stop production for days. Not sure what your real downtime is? Osync® machine monitoring measures it for you.

Hand work has no machine to break down, so downtime applies to Premium Machine only.

Switching Costs ⓘ

Costs each time a worn-out machine is replaced (applied to every replacement, not the first purchase).

Executive Summary

The bottom line
$0 back for every $1 of price difference

What You Pay vs. What You Get Back

Price difference
$0
10-year extra output & uptime
$0

Machine Pay Off

The Cost of Doing Nothing

months

Side by Side

Premium Machine

$0.00Machine, Labor & Running Cost per Part
Weekly Margin$0
Parts / Hr0
Run Hours / Wk0
Machine Cost / Hr$0.00
Net: $0 /wk

Budget Alternative

$0.00Machine, Labor & Running Cost per Part
Weekly Margin$0
Parts / Hr0
Run Hours / Wk0
Machine Cost / Hr$0.00
Net: $0 /wk

The Verdict

$0Monthly cost of choosing the budget machine
What changes with the budget machine
Lower Loan Payment$0
Lost Production$0
Extra Downtime$0
Fewer Parts / Hr0
Monthly
Premium Net $0 per month
Parts Produced0
Budget Net $0 per month
Parts Produced0
1 Year
Premium Net $0 per year
Parts Produced0
Budget Net $0 per year
Parts Produced0
10 Years
Premium Value $0 1 machine
Parts Produced0
Budget Value $0 1 machine
Parts Produced0
Lifetime
Premium Value $0 Lifetime
Parts Produced0
Budget Value $0 Lifetime
Parts Produced0

Cumulative Cash Over 10 Years

Premium Machine Budget Alternative

How Big Does the Speed Advantage Need to Be?

If the advantage is only half as big —

The Hidden Cost of Downtime

Premium Downtime $0/yr
Budget Downtime $0/yr

Time Is Money: The Same Work in Fewer Hours

Weekly0h
Monthly0h
Yearly0h
10 Years0h

Room to Grow: Put Off Machine #2

% per year
Not sure? Leave it blank and read across the table. The tiles above use 5% until you enter your own rate.
If your volume grows…Extra time before machine #2Putting off the next machineOperator time not neededTotal value

Analysis

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How This Is Calculated
  • Cycle or takt time: the minutes from the start of one cycle to the start of the next. If both machines load and unload in the same time, the cutting cycle time alone compares them fairly; if not, enter each machine’s time including load and unload.
  • Utilization: both sides of the comparison are assumed to be running cycles 80% of operating hours (set in step 2). Parts/hr, weekly margin, and all totals use this rate.
  • Other running costs: the optional $/run-hour cost (power, air, maintenance, tooling wear) is charged for every hour a machine actually runs. Hand work has none.
  • Doing the work by hand: when you compare against hand work, it’s treated as the number of people you entered, each working your operating hours at the time per part you entered and the same utilization, with no machine price, downtime, or replacement. The machine needs one operator.
  • Calendar: 52 operating weeks per year; a downtime day is one-fifth of an operating week.
  • Downtime: costed as lost margin. Labor is still paid during downtime and is already counted in labor cost, so it is not added again.
  • Monthly & 1-year figures: financed — uses the loan payment (i.e., during the loan term); cash — spreads each machine's price evenly over its expected life.
  • 10-year & lifetime figures: cash flows inside the period. A machine is replaced at the end of its expected life, and each replacement adds switching costs. Financed purchases (including replacements) count only payments made inside the period. No resale value, taxes, depreciation, or inflation.
  • Extra capacity: “Sell the extra output” assumes you can sell everything the faster machine makes. “Same workload, fewer hours” runs the slower machine's weekly output on both machines (against hand work, today's hand output); the faster machine saves labor hours, and downtime days are made up on overtime at 1.5× your labor rate.
  • Return on the price difference: 10 years of extra output (or labor saved) plus avoided downtime, divided by the difference in purchase price. Working days are 5 per week, 52 weeks per year.
  • Break-even speed: the slowest cycle or takt time at which the higher-priced machine (or, against hand work, the machine) still comes out even over 10 years, with every other input unchanged.
  • Room to grow: each machine's weekly capacity is parts/hr × operating hours, reduced by its expected downtime. The extra time before a second machine is ln(capacity ratio) ÷ ln(1 + growth rate), counted from the day the smaller machine fills up, so it doesn't depend on today's volume. Its value is (a) putting off the next machine's price plus switching costs, discounted at your loan rate, and (b) the operator hours a second machine would need for the extra volume over that time, at your labor rate. Capped at 10 years.
  • Price-gap payback: months of extra margin (output plus avoided downtime) needed to recover the difference in purchase price.
  • Machine pay off: a machine’s purchase price divided by what it earns each month after labor, downtime, and running costs — on its own (treating its output as new work), or, against hand work, by what it gains over doing the work by hand. Counted in months at your operating hours. Loan interest, taxes, and resale value are not included.
  • Cost of doing nothing: what each month of putting off the purchase gives up — the machine’s monthly profit after labor, downtime, and running costs, or its monthly gain over hand work. Waiting doesn’t avoid the purchase, it only moves it later, so loan payments aren’t subtracted. Price increases while you wait are not included.
  • Margin per cycle is your selling price minus material and consumables, so “net” figures are before overhead.

Talk Through Your Numbers

Every shop is different. Our team can help you pressure-test these assumptions with real cycle times for your parts, materials, and production goals.

Contact C.R. Onsrud (704) 508-7000

C.R. Onsrud — American-made since 1976. Troutman, NC. Machine with confidence.

Results are estimates based on the inputs you provide and the assumptions listed above. They are not a quote or a guarantee of performance. No data is collected by this calculator.

Beyond the Sticker Price: The True Cost of CNC Ownership

When you evaluate a new machine, it's natural to focus on the purchase price. But over a machine's working life, the price is often a small part of the total cost of ownership. The real costs — and the real profits — come from daily production speed, reliability, and longevity.

1. Production Speed Is Revenue

The biggest factor in ROI usually isn't what you pay for the machine. It's what the machine earns for you. A machine with higher acceleration, faster traverse speeds, and a more rigid frame can run aggressive feeds and cut cycle times significantly.

As the calculator shows, saving even a minute or two per cycle can add up to a very large amount of extra margin over a decade — often many times the difference in purchase price. A “cheaper” machine that produces fewer parts per week costs you potential profit every hour it runs.

Not sure you can sell the extra parts? Choose “Same workload, fewer hours” in step 2. The faster machine then pays you back in labor hours and overtime you no longer need, instead of extra sales.

Compare cycle times fairly. If both machines load and unload in the same time, their cutting cycle times tell you which is faster. If they don’t — for example, one machine loads the next sheet while it cuts — compare takt time instead: the time from the start of one cycle to the start of the next, load and unload included.

2. The High Cost of Downtime

Every hour a machine sits idle costs you money, and not only in lost production. Missed deadlines hurt customer relationships too. The full cost of downtime includes:

  • Idle labor: operators on the clock with nothing to run.
  • Lost margin: parts that aren't being made.
  • Overtime recovery: premium wages to catch up afterward.

Response time matters. C.R. Onsrud machines are designed, built, and supported in Troutman, North Carolina, and run on industry-standard FANUC controls, so when you need help it's one phone call, not a parts order from overseas. For a budget import, waiting weeks on a proprietary component can erase years of up-front “savings” in one breakdown.

3. Lifespan & Replacement Cycles

Industrial machinery is a long-term asset. C.R. Onsrud machines are engineered for continuous, multi-shift industrial production. Many budget alternatives use lighter frames and lower-grade components that aren't built for that kind of duty cycle.

“Buy nice or buy twice”: if a budget machine has to be replaced partway through your planning horizon, you're not just buying a second machine. You're also paying for:

  • Rigging & freight: removing the old machine and installing the new one.
  • Disruption: lost production during the changeover.
  • Retraining: learning a new control or interface.
  • Tooling (switching costs): replacing holders and fixtures that may not fit the new machine.
  • Software lock-in: some inexpensive machines ship with proprietary software that looks like a saving up front. In practice, your whole program library ends up in that proprietary format, so switching means hundreds of hours of reprogramming plus lost production while you wait. Choose a machine that works with dedicated CAD/CAM software outputting standard G-code, so your programs stay portable.

4. Costs That Don't Show Up on the Quote

The calculator keeps things simple, so a few real costs are left out. Most of them favor the better-built machine, which makes the results above conservative:

  • Resale value: the calculator assumes neither machine is worth anything at the end. In practice, a well-maintained machine from an established builder can still have real resale value when you upgrade, which lowers its true cost of ownership.
  • Scrap and rework: a more rigid, accurate machine holds tolerance across the whole table and across a full shift. On expensive material, a small difference in scrap rate can be worth more than the price gap.
  • Tool life: less vibration and chatter means cutting tools last longer and produce a better finish, so you spend less on tooling and secondary sanding or finishing.
  • Maintenance: ask every supplier for the recommended maintenance schedule and its typical yearly cost, including consumables like spindle service and vacuum pump parts.

5. Budget Import or Another Premium Builder? The Questions Change

Not every comparison is premium versus budget. Who you're comparing against changes which factors matter most.

Against a budget machine, the gaps are usually broad: frame rigidity, component quality, expected lifespan, and how fast you can get parts and service. Step 3 of the calculator captures most of these.

Against another premium builder, some of those gaps shrink. Frames and components may be comparable, and lifespans may be similar. The decision usually comes down to:

  • Cycle time on your parts. Ask each builder for a cycle-time estimate on the same part file. A smaller per-cycle difference still compounds over thousands of cycles — the break-even check in the calculator shows how small an advantage still pays for the price difference.
  • Support you can actually reach. Service quality varies between builders and between regions. Ask where the service technicians are based, what response times are committed, and for references from shops near you — then call them. Enter the downtime you hear about in step 3.
  • Parts availability. Are the controls and drives industry-standard and stocked in the U.S., or proprietary and shipped from overseas?
  • Software openness. Can you program the machine with the CAD/CAM software of your choice, outputting standard G-code?
  • Who stands behind the whole system. When the machine, controls, and support come from one source, there's one call to make when something goes wrong.

To compare two premium machines in the calculator, rename both, set lifespans and downtime to what references tell you, and focus on the cycle-time difference.

The Bottom Line

Once you factor in years of higher output, less downtime, and avoiding early replacement, the comparison often looks very different from the price tags alone. The question isn't “how much more does it cost?” but “how much more will it make?” Use the calculator above to see how it plays out for your shop.