Set-up is the time it takes to prepare a CNC machine for a batch: mount the workholding, load and measure the tools, set offsets and prove out the first part. It costs the same whether the batch is one part or a hundred, so on small orders it often outweighs the cutting itself. Together with programming, it is the main reason a single machined part costs many times the unit price of a production run.
Key points
- Set-up and programming are fixed costs per batch or per part number; cutting is a cost per part.
- The fixed cost divided by the batch size falls steeply from 1 to about 10 parts, then flattens.
- Every extra set-up (flipping the part, a second machine) adds another fixed block.
- Repeat orders that reuse a program and fixture cost noticeably less than first orders.
- Show set-up on the quote, offer quantity breaks and set a minimum order value.
What counts as set-up?
The set-up cost covers everything between finishing the last job and cutting good parts on this one. On a typical milling job that means:
- clearing the machine and mounting the vice, soft jaws or fixture;
- indicating the workholding square to the machine axes;
- loading any tools that are not already in the magazine and measuring their lengths;
- setting the work offset so the program knows where the part is;
- loading the program and running the first part, often slowly, with the operator watching;
- measuring the first part and adjusting offsets until it is in tolerance.
A part that needs machining from two sides needs two set-ups. A part that moves to a second machine for a cross hole or a thread needs another. Each one repeats part of the list.
Programming sits beside set-up. Writing the CAM program, choosing tools and planning the operations is paid once per part number, not once per batch. A first order pays both; a repeat order with a proven program and a stored fixture pays only set-up.
Why small batches pay so much
The arithmetic is simple: a fixed cost divided by the quantity. What surprises people is how quickly that fixed share dominates. A set-up that costs as much as eight parts’ worth of cutting is invisible on an order of a thousand and is most of the price of an order of one.
| Cost type | Paid | Changes with quantity? |
|---|---|---|
| Programming | Once per part number | No, and not at all on repeat orders |
| Set-up | Once per batch, per set-up | No |
| Fixtures and soft jaws | Once, kept for repeats | No |
| Material | Per part | Yes, and per-kilogram prices may fall at volume |
| Cycle time | Per part | Yes, and may fall slightly as the program is optimised |
| Finishing | Per part with a lot minimum | Yes, above the minimum |
Worked example: unit cost from 1 to 100 parts
The figures are illustrative assumptions for one shop, not market rates. The part needs one set-up, a first order needs programming, and the shop uses a single rate of €75 per hour for machine and programming time.
Worked example: fixed and per-part costs (illustrative rates)
| Line | Calculation | Amount |
|---|---|---|
| Programming (first order only) | 3 h × €75/h | €225.00 |
| Set-up | 1.5 h × €75/h | €112.50 |
| Fixed cost per first order | 225.00 + 112.50 | €337.50 |
| Cycle time | 12 min = 0.2 h × €75/h | €15.00 per part |
| Material | Saw-cut blank | €6.00 per part |
| Per-part cost | 15.00 + 6.00 | €21.00 |
Unit cost at each quantity, first order: fixed cost ÷ quantity + €21.00
| Quantity | Fixed share per part | Unit cost | Batch cost |
|---|---|---|---|
| 1 | €337.50 | €358.50 | €358.50 |
| 5 | €67.50 | €88.50 | €442.50 |
| 10 | €33.75 | €54.75 | €547.50 |
| 25 | €13.50 | €34.50 | €862.50 |
| 100 | €3.38 | €24.38 | €2,437.50 |
One part costs €358.50; a part from a batch of a hundred costs €24.38, about one fifteenth as much. Yet five parts cost only €84 more than one. Most buyers do not realise this until they see it laid out, which is the best argument for showing quantity breaks on the quote.
Now take the repeat order. The program exists, so only the €112.50 set-up is fixed. Ten parts cost €112.50 ÷ 10 + €21.00 = €32.25 each, against €54.75 on the first order: about 40 percent less for exactly the same part. A shop that prices repeat orders like first orders loses repeat work to competitors who do not.
Where set-up time hides
Set-up is easy to underestimate because much of it is waiting and checking rather than doing. Watch for:
- The second side. A part machined on two faces needs two set-ups, and the second is often harder, because the first side has to be located accurately.
- First-article inspection. On tight-tolerance work the first part may be measured on a CMM before the batch runs. See how tolerances drive machining cost.
- Unusual tools. Anything not permanently in the magazine has to be found, assembled and measured.
- Material changes. A new material may need different speeds proven on the first part.
- Outsourced steps. Heat treatment or anodising between operations means two set-ups on the same machine for the same batch.
How shops reduce set-up time
The cheapest set-up is the one you do not have to do. Common approaches:
| Approach | What it saves |
|---|---|
| Standard tools left permanently in the magazine | Loading and measuring tools for most jobs |
| Quick-change vices and zero-point workholding | Indicating and aligning the vice |
| Probing on the machine | Setting offsets by hand |
| Stored fixtures and programs for repeat parts | Programming and fixture making |
| Grouping jobs that share material, tools and workholding | Changeovers between jobs |
| Fewer set-ups per part, for example with a 5-axis machine | Whole extra set-ups |
The last one is a design and equipment question. A part that needs four set-ups on a 3-axis mill may need one on a 5-axis machine; our comparison of 3-axis and 5-axis machining works through when the higher rate pays for itself. On the design side, the design for CNC machining guide shows how to keep features reachable from as few directions as possible.
How to price set-up honestly
Set-up is a real cost, and a quote that hides it is either too expensive for long runs or too cheap for one part. A few pricing habits help:
- Show it. Put set-up and programming on their own lines, or at least show unit prices at several quantities so the buyer sees the curve.
- Price repeats as repeats. Drop the programming line when the program already exists.
- Set a floor. A minimum order value stops a one-part order from costing more to process than it earns. Our guide to quantity pricing and batch discounts covers how to set the breaks.
- Use a real rate. Set-up time is charged at a machine or labour rate. If that rate is wrong, every small order is wrong; the machine hour rate calculator helps check it.
Instant quoting software prices set-up the same way an estimator does: a fixed block per set-up, programming once per part, both divided across the quantity, with the unit price shown at each break. Quotometry prices CNC milling and turning this way: set-ups per lot and programming once per design, shared across the quantity (see CNC milling).
Questions people ask
What does CNC set-up time include?
Mounting and aligning the vice or fixture, loading and measuring the tools, setting work offsets, loading the program, running and measuring the first part, and adjusting until it is right. Each extra set-up for the same part, such as flipping it to machine the back, repeats part of this. Programming is separate and is usually paid once per part number rather than once per batch.
How long does a CNC set-up take?
It varies widely with the machine, the part and the shop's habits. A simple vice job on a machine with tools already loaded can take minutes; a new fixture, a full tool load and careful first-article checks can take several hours. Shops should time their own set-ups rather than rely on general figures, because the spread between shops is large.
How do I reduce set-up costs on small CNC orders?
Design parts that need fewer set-ups, keep standard tools permanently loaded, use quick-change vices and zero-point fixturing, batch similar parts that share tools and workholding, and keep programs and fixtures for repeat orders. On the commercial side, show set-up as its own line, offer quantity breaks, and set a minimum order value.
Should set-up be shown as a separate line on a quote?
Many shops find it helps. A buyer who sees that one part costs most of its price in set-up understands why five parts cost only a little more, and often orders more. Hiding set-up inside the unit price makes single parts look overpriced and long runs look underpriced, and it makes repeat orders, which skip programming, hard to price fairly.
Quotometry prices every part from your own machines and rates, on your website, in seconds.