CNC Lathe Purchase Cost Calculator
Estimate upfront investment, financed payments, total ownership cost, cost per operating hour and simple payback for a CNC lathe using your own quote and assumptions.
Your CNC lathe purchase-cost model
Based on a 5-year ownership period at 2,000 planned productive hours a year. This is an illustration built from the figures you entered, not a supplier quote or finance offer.
Funding and acquisition
| Funding method | Cash purchase |
|---|---|
| Machine price | £120,000 |
| Included options / accessories value | £0 |
| Machine price includes tax? | No |
| Total setup / implementation costs | £53,000 |
| Initial cash requirement | £173,000 |
Finance summary
Setup and implementation cost breakdown
| Category | Cost |
|---|---|
| Delivery and shipping | £3,000 |
| Rigging, unloading and positioning | £2,000 |
| Installation and commissioning | £5,000 |
| Initial tooling and holders | £12,000 |
| Workholding and fixtures | £6,000 |
| Measurement and inspection | £3,000 |
| CAM, software and control | £5,000 |
| Training, programming and setup | £4,000 |
| Facility and utilities modifications | £10,000 |
| Safety, guarding and compliance | £2,000 |
| Other upfront costs | £1,000 |
| Total setup costs | £53,000 |
Ownership cost breakdown
The all-in ownership cash cost includes the deposit or cash price, any financed principal repaid within your ownership period, and operating costs. Interest and the arrangement fee are shown separately as the cost of borrowing.
| Machine price | £120,000 |
|---|---|
| Setup / implementation costs | £53,000 |
| Recurring operating costs over 5 years | £95,000 |
| Finance interest and arrangement fee | £0 — cash purchase |
| Residual value | £40,000 |
| Remaining finance balance at end of year 5 | N/A — cash purchase |
| Net residual after any outstanding finance balance | £40,000 |
| Operating cost basis (before separate finance cost) | £228,000 |
| All-in ownership cash cost | £228,000 |
| Total planned productive hours | 10,000 |
| Operating cost per planned hour | £22.80 |
| All-in cost per planned hour | £22.80 |
Benefits and simple payback
Add measurable annual benefits below to estimate a simple payback period.
Year-by-year operating cost, finance payment and any benefit, plus the cumulative net position. Residual value and any outstanding finance balance are applied only in the final year, exactly as in the ownership-cost table above.
| Year | Operating cost | Finance payment | Benefit | Net cash flow | Cumulative net position |
|---|---|---|---|---|---|
| 1 | £19,000 | — | — | £-19,000 | £-192,000 |
| 2 | £19,000 | — | — | £-19,000 | £-211,000 |
| 3 | £19,000 | — | — | £-19,000 | £-230,000 |
| 4 | £19,000 | — | — | £-19,000 | £-249,000 |
| 5 | £19,000 | — | — | £-19,000 | £-228,000Residual value applied: +£40,000 |
This is a cash purchase — no finance schedule applies.
The full month-by-month finance schedule for the term you entered, capped so the final payment cannot leave a negative balance.
| Month | Opening balance | Payment | Interest | Principal | Closing balance |
|---|
Illustrative sensitivity scenarios, not forecasts. Each scales your planned hours (and, if enabled, your annual benefits) up or down together, representing lower or higher utilisation — operating costs and finance terms stay as you entered them.
| Scenario | Planned hours/year | Operating cost/hour | All-in cost/hour | Simple payback |
|---|---|---|---|---|
| Lower utilisation (×0.8) | 1,600 | £28.50 | £28.50 | Not available |
| Base case | 2,000 | £22.80 | £22.80 | Not available |
| Higher utilisation (×1.2) | 2,400 | £19.00 | £19.00 | Not available |
- Funding method
- Cash purchase
- Machine price
- £120,000
- Setup / implementation costs
- £53,000
- Initial cash requirement
- £173,000
- All-in ownership cash cost over 5 years
- £228,000
- Modelled cost per planned productive hour
- £22.80
- Simple payback
- Not available
- Note
- This is an illustration built from the figures you entered — not a supplier quote, finance offer, tax calculation, accounting valuation or investment recommendation.
How to use this calculator
Enter the machine quote, finance terms, setup costs, annual running costs, planned operating hours and any measurable annual benefits. The calculator builds an illustrative purchase-cost, ownership-cost and simple-payback view from those inputs.
- Set your planned ownership period, planned productive hours per year, and any annual cost escalation.
- Enter the machine price and any additional acquisition cost you would include in finance.
- Choose a cash purchase or standard fixed-rate finance, and enter the finance terms if financing.
- Enter each upfront setup and implementation cost that applies — everything defaults to zero.
- Enter your recurring annual operating costs by category.
- Choose a residual value — none, a fixed amount, or a percentage of the machine price.
- Optionally add measurable annual benefits to see a simple payback estimate.
Results update as you change any figure. Use Reset to return to the worked example.
How does this calculator work?
For a cash purchase, the initial cash requirement is the machine price plus your setup total. For a financed purchase, the finance principal is the machine price plus any additional financed acquisition cost, minus your deposit — unless you turn on the manual principal override — and the initial cash requirement is the deposit, arrangement fee and setup total. The finance payment uses the same standard fixed-rate amortising formula as the site's loan calculators, such as the Loan Repayment Calculator, walked month by month so the final payment is capped rather than overshooting into a negative balance.
- P — the finance principal
- r — your annual interest rate divided by 12
- n — the finance term in months
- Annual operating costs compound at your entered escalation rate each year
- Operating cost basis = machine price + setup + operating costs − residual value
- All-in cash cost = initial cash + financed principal repaid within ownership + operating costs − residual net of any outstanding finance balance
- Cost per planned hour = the relevant total ÷ (planned hours per year × ownership years)
For example, a £120,000 machine bought for cash with £53,000 of setup costs, £19,000 a year of operating costs over 5 years and a £40,000 residual value gives a total cost of ownership of £228,000 — and at 2,000 planned productive hours a year, that is £22.80 per planned productive hour.
What does this calculator assume?
- Every figure — the machine price, setup costs, annual costs, finance terms, residual value and any benefit — is one you enter. Nothing is looked up or defaulted from a "typical" project.
- Finance is a single standard fixed-rate amortising loan for the whole term. There is no balloon payment, lease, hire purchase, variable rate, or deferred or irregular repayment schedule.
- Annual operating costs compound at one escalation rate you choose; a 0% rate is a transparent flat baseline, not a forecast.
- No automatic depreciation, capital allowance, tax or accounting treatment is calculated. For machining-time and material-removal calculations for the machine itself, see the CNC Milling Speeds & Feeds Calculator and the CNC Drilling Speeds and Feeds Calculator.
- Planned productive hours are a utilisation assumption you provide, not a guarantee — downtime, changeovers, tooling issues and demand are not modelled.
- Simple payback, where shown, ignores the time value of money — for a discounted view of a lump sum or a savings plan see the Compound Interest Calculator.
Important information
Important: This calculator is an illustrative capital-cost model based on the quote, finance terms, operating costs and benefits you enter. It is not a supplier quote, finance offer, tax calculation, accounting valuation, investment recommendation or approval decision.
Check equipment quotes, finance documents, accounting treatment, tax rules and operational assumptions with appropriate professionals before committing to a purchase or finance agreement.