How to Calculate Laser Engraving Costs
Whether you own a Glowforge, xTool, or a full-size CO2 laser, knowing the true cost per item is the difference between a profitable side hustle and an expensive hobby. Most makers forget to account for machine depreciation and energy, two costs that add up fast over hundreds of jobs.
The Four Cost Layers
Every laser job has four cost components: the material or blank (wood rounds, acrylic sheets, leather patches), the electricity consumed by the laser, machine depreciation spread across its useful lifespan, and your labor for design prep, loading, weeding, and finishing. This calculator rolls all four into a single cost-per-item number.
Why Depreciation Matters
A $4,000 laser with a 2,000-hour tube life costs $2.00 for every hour it runs, before you even flip the switch. If your average job takes 10 minutes, that is about $0.33 in depreciation per piece. Ignore it, and you are slowly eating into the cost of your next machine or tube replacement without realizing it.
Pro Tip: Run test cuts on scrap material before committing to a full sheet. Dialing in speed and power settings on cheap offcuts saves you from ruining a $5 walnut blank and keeps your per-item waste cost low.
Ready to list your laser creations? Use our Etsy Profit Calculator to reverse Etsy's 2026 fees and lock in your target margins before you publish.
Frequently Asked Questions
How much does it cost to run a laser engraver per hour?▼
Electricity cost depends on your laser wattage and local rate. A typical 40W CO2 laser running at full power costs about $0.005 per hour in electricity alone. However, the real per-hour cost is much higher once you factor in machine depreciation and laser tube replacement, which can add $1-3 per hour depending on your machine.
How long does a Glowforge or CO2 laser tube last?▼
Most CO2 laser tubes last between 1,000 and 2,000 hours of active cutting and engraving time. Diode lasers like xTool models can last 10,000+ hours. Enter your machine cost and expected lifespan in the calculator to see the depreciation cost per job.
What markup should I use for laser engraved products?▼
A 3x markup on total cost is a common starting point for laser engraved goods sold on Etsy or at craft fairs. Personalized or custom items can command 4x-5x because customers value one-of-a-kind pieces. Always account for material, energy, depreciation, and your labor before applying the multiplier.