When does your own CNC laser pay off? Practical payback calculation

Purchasing your own CNC laser is a significant investment for most manufacturing companies. A fiber laser can shorten delivery times, reduce dependence on external suppliers, and accelerate the development of new products.

The fundamental question is therefore not only: How much does a metal laser cutter cost? It is much more important to find out what savings and new opportunities a CNC laser will bring.

The return on a laser cutting machine cannot be determined solely by its purchase price. The main factors are the planned workload, the materials being processed, the power of the laser source, or the price of technical gases.

When to start thinking about your own CNC laser

Many companies start by having their sheet metal blanks manufactured externally. For smaller and irregular quantities, this is often the simplest solution. The company does not have to invest in technology, employ staff, or prepare production space.

However, as production volumes increase, the disadvantages of external laser cutting may begin to appear:

  • Increasing costs for purchased blanks
  • Dependence on supplier deadlines
  • Transportation of materials and finished parts
  • More complicated changes in production documentation
  • Extending deadlines for own orders
  • Inability to quickly produce a prototype or spare part

A company's own metal laser begins to make economic sense when the company has regular work for the machine. It does not have to be only large-scale production. The ability to produce exactly when the parts are needed is also of significant value.

A typical person interested in their own CNC cutting laser is a locksmith company, machine manufacturer, metal fabricator, manufacturer of shelves, structures or technological units. However, their own laser cutting machine may also be interesting for a company that currently purchases blanks only for its own production.

Purchasing a CNC laser is not just a savings on external cutting

The simplest calculation compares the price of purchased laser cutting with the costs of operating their own machine. This is the right basis, but only part of the overall benefit.

An in-house fiber laser can bring value to a company in several ways.

Savings on purchased blanks

The company no longer pays the external supplier's trade margin and part of the transportation. It mainly pays its own operating costs of the laser and the operator's wages.

It is advisable to consider the material separately in the calculation. The company also pays its price directly or indirectly in external production.

Faster production and shorter delivery times

A company with its own CNC laser does not have to wait for a part that an external supplier would produce within a few days. The blank can be included in production according to the current priority.

This is especially important for service parts, prototypes and orders with a short deadline. Faster production can be a competitive advantage.

Higher margins on its own products

If a company purchases a semi-finished product and then welds and machines it, its own CNC laser takes over a larger part of the production chain. A higher share of its own work usually means better control over the resulting price and margin.

Laser cuts can be further processed, for example, on a press brake, deburring machine or machining center. CNC laser is often not a stand-alone technology, but the basis of the entire modern metal production.

Custom cutting for other companies

Free capacity can be offered to customers in the area. This way, the company gains additional sales and at the same time increases the utilization of the machine.

Additional orders can significantly reduce the return on investment. However, it is advisable to calculate realistically.

What to include in the purchase price

To calculate the return on investment, it is not enough to use only the price of the machine itself. It is necessary to determine the total investment necessary to start production. The purchase price may include:

  • CNC laser cutting machine
  • Laser source and process head
  • Cooling
  • Exhaust and filtration
  • Voltage stabilizer
  • Compressor and compressed air treatment
  • Transport and assembly of the machine
  • Installation and commissioning
  • Operator training
  • Technical gas distribution
  • Electrical installation
  • Any construction modifications
  • Production preparation and nesting software

When comparing offers, it is therefore important to monitor their actual scope. A cheaper offer may not be more advantageous if it lacks essential elements.

For a correct calculation, it is advisable to work with the amount for which it will be possible to actually start the laser cutting machine and start producing on it.

What are the operating costs of a CNC laser

The operating costs of a fiber laser vary depending on the machine's power, the material being cut, the thickness of the sheet metal or the gas used.

The most important items:

  • Technical gases (nitrogen and oxygen)
  • Electricity
  • Operator wages
  • Process head consumables
  • Service and regular maintenance
  • Software
  • Financing
  • Technology depreciation

To calculate the simple payback period, it is advisable to separate accounting depreciation from direct expenses. The purchase price is already included as an initial investment. If we were to include the entire depreciation in the hourly operation, we would partially count the price of the machine twice.

How to reduce the payback period of a CNC laser

The payback period can be influenced when choosing the technology and preparing production.

  1. Choose the right laser source power
  2. Choose the appropriate size of the work surface
  3. Reduce downtime with interchangeable tables
  4. Effectively prepare nesting of cut-outs
  5. Use sheet metal scraps
  6. Optimize cutting parameters
  7. Plan orders according to materials and thicknesses
  8. Offer free capacity to external customers

A high-quality fiber laser is not just a machine with sufficient performance. It is a complete production unit.

We will go through our own calculation with you

There is no universal answer to the question of how long it will take for a CNC laser to pay back. For a smaller company, it may be four or five years. For a well-loaded operation, the payback period may be around two to three years, sometimes even shorter. The following are the main factors:

  • Total purchase price
  • Number of actual productive hours
  • Current costs for external cutting
  • Material and technical gas used
  • Performance and design of the machine
  • Operating costs
  • Amount of financing
  • Possibility of obtaining further orders

Before purchasing, we therefore recommend preparing an overview of commonly processed materials, thicknesses and dimensions of sheet metal. Based on this data, a suitable CNC cutting laser can be designed and a much more accurate calculation can be created.

We will help you calculate the return on investment

We supply professional GWEIKE CNC lasers for cutting sheets or pipes. The range includes compact open machines, covered fiber lasers, laser cutters with exchangeable tables, combined machines and stand-alone pipe lasers.

We are interested in what materials you will cut, what their usual thickness is and in what direction your production can develop. Accordingly, we will recommend the appropriate performance, working area and level of automation.

The delivery includes professional installation, setting of cutting parameters, operator training and subsequent service support. Our goal is for the CNC laser to be not just a new technology in production, but a long-term productive machine with an economically meaningful return on investment.

Send us an overview of materials and current costs for external burning. We will prepare a recommendation for a suitable configuration of the laser cutting machine and an approximate calculation of the return on investment for your specific production.

FAQ about return on investment

How long does it usually take for a CNC laser to pay for itself?
The payback period depends primarily on the purchase price and actual utilization. For a regularly used machine, the approximate return on investment can be approximately two to four years. At low utilization, it will be longer, while custom burning and multi-shift operation can significantly shorten it.

How many hours per month does a CNC laser have to work?
There is no single minimum limit for all companies. It depends on the difference between the price of external production and your own operating costs. In our model example, 120 productive hours per month brings a return of less than three years.

Is it better to buy a cheaper laser with lower power?
Only if the lower power corresponds to regular production. A laser that is too weak may have a lower purchase price, but also lower productivity and limited opportunities to accept new orders.

Is a CNC laser with an exchangeable table worth it?
Usually, yes, for regular operation of several hours. The exchangeable table reduces downtime, because the operator can prepare another sheet during cutting. For occasional use, a simpler single-table design may make more sense.

What has the greatest impact on operating costs?
The significant items are technical gases, operator wages and electricity. The result is also affected by the material, sheet thickness, number of burns, nozzle diameter, laser source power and the organization of the entire production.