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What are your idle machine hours costing?

Enter your shop's numbers to see what spindles standing idle cost you per year — the machine-hours you pay for but never sell.

Indicative estimate from your inputs — not a quote. See how Mama measures this on a real floor →
Updated 2026-10-06 · The Mama Editorial Team

Machine hour rate (MHR) is what one hour of a machine costs you: its total yearly cost — depreciation, interest, operator, power, maintenance, tooling and overhead — divided by its productive hours. Every hour that machine stands idle, you still carry that cost but sell nothing against it. This calculator multiplies your idle machine-hours by your machine hour rate to show what those unsold hours cost in rupees per year.

How the calculator works

The calculator takes four inputs and does three multiplications:

  • Machines on the floor — how many machines you are counting (for example all VMCs and CNC lathes in one bay).
  • Idle hours per machine per day — the average hours each machine is available in the shift but not cutting: waiting for material, setup, tool change, no operator, no job.
  • Machine hour rate (₹/h) — your costed rate per machine-hour. If you don't have one, the worked example below shows how to build it.
  • Working days a year — days the shop runs.

The formula:

Idle machine-hours a day = machines × idle hours per machine
Cost per day = machines × idle hours × machine hour rate
Cost per year = cost per day × working days

The result shows idle machine-hours a day, cost per day in ₹, and cost per year in lakh (or crore above ₹1 crore). It treats every machine as having the same rate and the same idle hours — enter averages, or run it separately for each machine group.

The calculator does not compute the machine hour rate itself; you enter it. The standard way to build it is:

MHR = (depreciation + interest + operator + power + maintenance & tooling + allocated overhead) ÷ productive machine hours per year

Worked example (India)

A 12-machine auto-component machining shop, single shift. All figures are assumptions for illustration, except the operator wage, which is the Haryana minimum wage for skilled workers (₹18,500.81/month, Haryana Labour Department notification No. 2/25/26-2 Lab, 9 April 2026). Plug in your own.

Step 1 — build the machine hour rate for one VMC

Cost item (per machine, per year) ₹/year Basis
Depreciation 2,50,000 Assumption: ₹25 lakh VMC, 10-year straight line
Interest on capital 1,25,000 Assumption: 10% on average balance of ₹12.5 lakh
Operator 2,22,010 Haryana skilled minimum wage × 12 (wage only, no statutory add-ons)
Power 1,28,000 Assumption: 8 kW average × 2,000 h × ₹8/kWh
Maintenance & tooling 1,50,000 Assumption: AMC, inserts, coolant
Allocated overhead 1,00,000 Assumption: space, lighting, supervision share
Total 9,75,010
Productive hours 2,000 Assumption: 8 h × 300 days = 2,400 planned, ~2,000 productive
Machine hour rate ≈ ₹490/h 9,75,010 ÷ 2,000 = ₹487.5

Step 2 — put it into the calculator

Input Value
Machines on the floor 12
Idle hours per machine per day 2.5 (assumption)
Machine hour rate ₹490/h
Working days a year 300
Idle machine-hours a day 30 h (12 × 2.5)
Cost per day ₹14,700 (30 × 490)
Cost per year ₹44.10 lakh (14,700 × 300)

2.5 idle hours in an 8-hour shift is about 31% of planned time — a modest assumption next to the utilisation figures below. Note also that if the 2,000 "productive hours" in Step 1 are really 1,200 cutting hours, the true rate is about ₹813/h, and the idle cost scales with it.

What typical numbers look like

What this number does not tell you

  • It is not all cash out of pocket. Idle hours are charged at the full MHR, but power and tooling are mostly not spent while a machine sits idle. The full figure is the cost you fail to recover, not cash spent.
  • Your rate may already be wrong. If your MHR divides by optimistic hours, the rate is too low and the idle cost is understated.
  • It doesn't say why the machines are idle. Waiting for material, setup, no operator and no orders need different fixes. Idle time with no orders behind it is a sales problem, not a shop-floor one.
  • Averages hide the bottleneck. One constrained machine idle for an hour can cost more than ten non-constrained machines idle for the same hour.
  • Your idle-hours figure is probably a guess. Most shops estimate idle time from memory or shift logs, which tend to undercount short stops and late starts.

Related guides

FAQ

How do you calculate machine hour rate? Add up a machine's yearly costs — depreciation, interest on capital, operator wages, power, maintenance and tooling, and its share of overhead — and divide by the hours it is productive in a year. A ₹9.75 lakh yearly cost over 2,000 productive hours gives about ₹490 per hour.

What is a good machine hour rate for a CNC machine in India? There is no single published figure; it depends on machine price, shifts, wages, power tariff and how many hours the machine actually cuts. A rate built on the formula above with your real productive hours is the only defensible number for quoting.

How do I calculate the cost of idle machine hours? Multiply the number of machines by average idle hours per machine per day, then by your machine hour rate, then by working days a year. For 12 machines idle 2.5 hours a day at ₹490 per hour over 300 days, that is about ₹44 lakh a year.

Should idle time be included in machine hour rate? Productive hours should be the realistic hours the machine works, not nameplate hours. If you divide by hours it never actually runs, the rate comes out too low and every quote under-recovers cost.

Why is my machine hour rate higher than my competitor's quote? Often because the competitor divides by more hours (two or three shifts, or optimistic loading), uses an older depreciated machine, or simply under-recovers cost. Check your productive-hours assumption before you cut the rate.

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