Sheet Metal Costing: How to Calculate the Cost of a Sheet Metal Part
A practical guide for fabrication shops: what goes into the cost of a sheet metal part, how to calculate it step by step, and how to do it in seconds instead of hours.
What is sheet metal costing?
Sheet metal costing is working out the real manufacturing cost of a sheet metal part before you quote it. A sound costing covers material and scrap, cutting (laser, plasma or guillotine), bending, machine setup, labor and overheads — and only then adds your margin.
When costing is done by gut feel or a quick spreadsheet, you either lose jobs because you are too expensive or win jobs that lose money. The method below is the one most shops use — and the one Workshop Assistant automates.
What goes into the cost
The formula
Part cost = Material + Cutting + Bending + (Setup ÷ Quantity) + Labor
Part price = Part cost × (1 + Margin)
Worked example: a 2 mm steel bracket
A mild steel bracket, 2 mm thick, 300 × 200 mm flat blank, 4 bends, batch of 50. The rates are illustrative — plug in your own.
| Item | Calculation | Per part |
|---|---|---|
| Material | 0.06 m² × 2 mm × 7,850 kg/m³ = 0.94 kg, +15% scrap = 1.08 kg × €1.20/kg | €1.30 |
| Laser cutting | 1.2 m cut ÷ 4 m/min = 0.3 min × €1.50/min | €0.45 |
| Bending | 4 bends × 12 s = 0.8 min × €1.00/min | €0.80 |
| Setup | €40 (laser + press brake) ÷ 50 parts | €0.80 |
| Part cost | €3.35 | |
| Price at 25% margin | €3.35 × 1.25 | €4.19 |
For the batch of 50 that is a quote of about €209. If the customer asks for 10 parts instead, setup rises to €4.00 per part and the price to €8.19 — which is why quantity must always be part of the calculation.
Common sheet metal costing mistakes
- Pricing material from net part weight only, with no scrap allowance.
- Using the same setup cost for 5 parts and for 500.
- Measuring the outer perimeter only and forgetting holes and pierces.
- Stale material prices that aren't updated when the market moves.
- Measuring drawings by hand — slow, and a source of errors.
How Workshop Assistant does it for you
Import a DXF or STEP file and Workshop Assistant measures area, weight, cut length, holes and bends on its own. Using the material prices and machine rates you set once, it produces the cost of every part and the final quote in seconds — with an Excel report ready for your customer.
See how DXF & STEP import worksFAQ
How do you calculate sheet metal cost?+
Add material cost (weight plus scrap × price per kg), cutting cost, bending cost, setup cost divided by quantity, and labor. Then add your margin on top of the total cost.
How much scrap should I allow for sheet metal?+
Typically 10–25%, depending on part shape and how well parts nest on the sheet. Workshop Assistant's nesting shows actual sheet utilization.
How is laser cutting cost calculated?+
From total cut length and number of pierces, the cutting speed for that material and thickness, and the machine's hourly rate.
Is there software for sheet metal costing?+
Yes. Workshop Assistant is sheet metal costing software for Windows and Android, with DXF/STEP import, nesting and Excel quotes, and a free trial of 10 offers with no credit card.
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