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:

Cost per hole = Tool cost + Machine cost + Coolant cost + Labor/overhead

1. Tool Cost Per Hole

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

Example: Ø8 mm brazed carbide gun drill

Cost ElementValue
New tool purchase$180
Holes per new edge320
Number of regrinds5
Holes per regrind edge280 (decreases with tip shortening)
Cost per regrind$35
Total holes:320 + (5 × 280) = 1,720
Total tooling cost:$180 + (5 × $35) = $355
Tool cost per hole:$0.21

2. Machine Cost Per Hole

Machine cost per hole = Machine hourly rate × Cycle time per hole (hours)

Machine hourly rate = (Machine purchase price × Depreciation factor + Annual maintenance) ÷ Annual operating hours

Example: Dedicated gun drilling machine

Cost ElementValue
Machine purchase price$250,000
Depreciation period10 years (straight line)
Annual depreciation$25,000
Annual maintenance (8%)$20,000
Annual operating hours4,000 (2 shifts × 2,000 hours)
Machine hourly rate($25,000 + $20,000) ÷ 4,000 = $11.25/hr

Cycle time calculation:

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 ElementValue
Coolant volume in system500 L
Coolant replacement interval6 months
Coolant cost per liter$4/L (neat oil)
Annual coolant cost2 × 500 × $4 = $4,000
Annual filter cost$2,400
Holes per year20,000
Coolant + filtration cost per hole($4,000 + $2,400) ÷ 20,000 = $0.32

4. Labor and Overhead

Cost ElementValue
Operator hourly rate$35/hr (including benefits)
Machine utilization80% (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

ComponentCost
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 DiameterTool 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 RatioCycle Time MultiplierTool Life ReductionRelative Cost Per Hole
20:11.0×1.0× (baseline)1.0×
50:12.5×0.8×2.8×
100:15.0×0.6×6.5×
200:110.0×0.4×15.0×

Regrind vs Replace: Break-Even Analysis

ScenarioCost Per HoleSavings vs Replace
Always replace new ($180 ÷ 320 holes)$0.56
1 regrind then replace ($180 + $35) ÷ (320+280)$0.3832%
5 regrinds then replace ($180 + 5×$35) ÷ (320+5×280)$0.2163%
5 regrinds (but 30% lower holes per regrind)$0.2457%

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 FactorGun DrillingBTA DrillingTwist Drilling + Reaming
Cycle time4.5 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 finishRa 0.8 µmRa 1.6 µmRa 1.6 µm (ream)
ToleranceIT8IT9IT9 (reamed)

Ø25 mm × 500 mm (20:1)

Cost FactorGun DrillingBTA DrillingEjector Drilling
Cycle time8.0 min2.5 min3.5 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 requirementDedicatedDedicatedCNC 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 SpecBest MethodCost Per HoleWhy
Ø5 mm × 25 mm (5:1)Twist drill$0.50Gun drill setup overhead unjustified
Ø5 mm × 100 mm (20:1)Gun drill$1.80Twisting pecking time dominates
Ø5 mm × 500 mm (100:1)Gun drill only$8.50Twist drill cannot reach this depth

Machine Investment Payback Analysis

Investment ScenarioCostAnnual ProductionAnnual Savings vs OutsidePayback Period
Gun drilling retrofit on existing CNC lathe$35,0005,000 holes$0.50/hole vs contract14 months
Dedicated single-spindle gun drill$250,00020,000 holes$2.00/hole vs contract6.25 years
Dedicated multi-spindle gun drill$500,00060,000 holes$1.80/hole vs contract4.6 years

Cost Reduction Levers

Highest Impact First

LeverPotential SavingsEffort
Optimize regrind schedule30–60% tool cost reductionLow (tracking + scheduling)
Increase cutting speed (within stable range)10–30% cycle time reductionLow (parameter change)
Reduce coolant system maintenance10–15% coolant cost reductionLow (scheduled PM)
Add spindle load monitoring40–60% breakage reduction (scrap saving)Medium (sensor + integration)
Add whip guide for deeper stable drilling20–40% per hole cost at extreme L/DMedium (hardware)
Switch from brazed to indexable (where applicable)5–10% tool cost reductionLow (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.