Complete cost analysis for gun drilling — per-hole formula, tool cost breakdown, machine rate calculation, coolant consumption, regrind vs replace economics, and comparison with BTA and twist drilling at overlapping diameters.
July 4, 2026 · Deep Hole Drilling Guide Team
Gun Drilling Cost Analysis: Economics Per Hole
Gun drilling is often chosen for its quality — single-pass precision IT6-IT9, surface finish Ra 0.4-0.8 µm, and depth ratios up to 300:1. But these capabilities come at a cost. Understanding the economics per hole is essential for process planning, equipment justification, and cost comparison with alternative methods.
This guide provides a structured framework for calculating gun drilling cost per hole, with worked examples and comparison data.
Cost Per Hole Formula
The total cost per gun-drilled hole is the sum of four components:
Tool cost per hole = (Tool purchase price + Total regrind costs) ÷ Total holes over tool life
For a new tool with regrinds:
Total tooling cost = Purchase price + (Number of regrinds × Regrind cost per cycle)
Total holes = (Holes per regrind cycle) × (1 + Number of regrinds)
Tool cost per hole = Total tooling cost ÷ Total holes
Cycle time (min) = (Hole depth ÷ Feed rate (mm/min)) + Retract + Indexing
For a 200 mm deep hole at 0.02 mm/rev, 4,000 RPM:
Feed rate = 0.02 × 4,000 = 80 mm/min
Drilling time = 200 ÷ 80 = 2.5 min
Retract + indexing = 0.5 min
Total cycle = 3.0 min
Machine cost per hole = $11.25/hr × (3.0 ÷ 60) hr = $0.56
3. Coolant Cost Per Hole
Coolant cost per hole = (Coolant consumption per hole × Coolant unit cost) + (Filtration amortization per hole)
Cost Element
Value
Coolant volume in system
500 L
Coolant replacement interval
6 months
Coolant cost per liter
$4/L (neat oil)
Annual coolant cost
2 × 500 × $4 = $4,000
Annual filter cost
$2,400
Holes per year
20,000
Coolant + filtration cost per hole
($4,000 + $2,400) ÷ 20,000 = $0.32
4. Labor and Overhead
Cost Element
Value
Operator hourly rate
$35/hr (including benefits)
Machine utilization
80% (actual cutting time)
Labor cost per hole
$35 × 80% × (3.0 ÷ 60) = $1.40
Overhead (facility, insurance, etc.)
30% of labor + machine = $0.59
Total labor + overhead per hole
$1.99
Total Cost Per Hole
Component
Cost
Tool cost
$0.21
Machine cost
$0.56
Coolant + filtration
$0.32
Labor + overhead
$1.99
Total
$3.08 per hole
Cost Sensitivity Analysis
Tool Diameter vs Cost Per Hole
Drill Diameter
Tool Cost (New)
Cost per Hole (Tool Only)
Cost per Hole (Total)
3 mm
$120
$0.14
$2.40
8 mm
$180
$0.21
$3.08
15 mm
$280
$0.33
$3.85
25 mm
$450
$0.52
$4.60
40 mm
$650
$0.75
$5.50
L/D Ratio Effect on Cost
As L/D ratio increases:
- Cycle time increases (linearly)
- Tool wear rate increases (nonlinearly)
- Scrap/breakage risk increases
- Regrind yield decreases
L/D Ratio
Cycle Time Multiplier
Tool Life Reduction
Relative Cost Per Hole
20:1
1.0×
1.0× (baseline)
1.0×
50:1
2.5×
0.8×
2.8×
100:1
5.0×
0.6×
6.5×
200:1
10.0×
0.4×
15.0×
Regrind vs Replace: Break-Even Analysis
Scenario
Cost Per Hole
Savings vs Replace
Always replace new ($180 ÷ 320 holes)
$0.56
—
1 regrind then replace ($180 + $35) ÷ (320+280)
$0.38
32%
5 regrinds then replace ($180 + 5×$35) ÷ (320+5×280)
$0.21
63%
5 regrinds (but 30% lower holes per regrind)
$0.24
57%
Break-even: Regrinding saves money as long as the first regrind yields ≥ 150 holes (47% of new edge performance).
Cost Comparison: Gun Drilling vs BTA vs Twist Drilling
Ø10 mm × 300 mm (30:1)
Cost Factor
Gun Drilling
BTA Drilling
Twist Drilling + Reaming
Cycle time
4.5 min (single pass)
2.0 min (faster feed)
6.0 min (peck + ream pass)
Tool cost per hole
$0.25
$0.40
$0.15
Machine cost per hole
$0.84
$0.38
$1.12
Total cost per hole
$3.60
$2.80
$3.90
Surface finish
Ra 0.8 µm
Ra 1.6 µm
Ra 1.6 µm (ream)
Tolerance
IT8
IT9
IT9 (reamed)
Ø25 mm × 500 mm (20:1)
Cost Factor
Gun Drilling
BTA Drilling
Ejector Drilling
Cycle time
8.0 min
2.5 min
3.5 min
Tool cost per hole
$0.52
$0.35
$0.30
Machine cost per hole
$1.50
$0.47
$0.66
Total cost per hole
$5.20
$2.80
$3.40
Machine requirement
Dedicated
Dedicated
CNC lathe retrofit
When Twist Drilling Is Cheaper
For short holes (< 10:1 L/D), twist drilling (with pecking for moderate depths) is usually cheaper:
Hole Spec
Best Method
Cost Per Hole
Why
Ø5 mm × 25 mm (5:1)
Twist drill
$0.50
Gun drill setup overhead unjustified
Ø5 mm × 100 mm (20:1)
Gun drill
$1.80
Twisting pecking time dominates
Ø5 mm × 500 mm (100:1)
Gun drill only
$8.50
Twist drill cannot reach this depth
Machine Investment Payback Analysis
Investment Scenario
Cost
Annual Production
Annual Savings vs Outside
Payback Period
Gun drilling retrofit on existing CNC lathe
$35,000
5,000 holes
$0.50/hole vs contract
14 months
Dedicated single-spindle gun drill
$250,000
20,000 holes
$2.00/hole vs contract
6.25 years
Dedicated multi-spindle gun drill
$500,000
60,000 holes
$1.80/hole vs contract
4.6 years
Cost Reduction Levers
Highest Impact First
Lever
Potential Savings
Effort
Optimize regrind schedule
30–60% tool cost reduction
Low (tracking + scheduling)
Increase cutting speed (within stable range)
10–30% cycle time reduction
Low (parameter change)
Reduce coolant system maintenance
10–15% coolant cost reduction
Low (scheduled PM)
Add spindle load monitoring
40–60% breakage reduction (scrap saving)
Medium (sensor + integration)
Add whip guide for deeper stable drilling
20–40% per hole cost at extreme L/D
Medium (hardware)
Switch from brazed to indexable (where applicable)
5–10% tool cost reduction
Low (tool selection)
Summary
Gun drilling cost per hole is driven primarily by cycle time (machine cost + labor) at small diameters and tool cost at larger diameters. For a typical Ø8 mm × 200 mm hole, total cost is approximately $3.08 per hole, with labor and overhead representing the largest component (65%). Regrinding reduces tool cost by 63% over the life of the tool compared to using new tools exclusively. At diameters below 10:1 L/D, twist drilling is more economical; above 20:1 L/D, gun drilling is the most cost-effective method. For a detailed cost comparison across all deep hole drilling methods, see deep hole drilling method cost comparison. For tooling cost optimization through regrinding, see gun drill regrinding best practices.
Articles in Gun Drilling: Process, Tools & Parameters