How Much Does It Cost to Start a Laser Engraving Business?

Laser engraving is one of the most versatile and creative small business opportunities available today. The applications for laser-engraved products are nearly endless, from personalized tumblers and wooden signs to industrial parts and custom jewelry. Whether you’re looking to launch a full-scale production shop or start a side hustle from your garage, understanding the startup costs is the first step to success.

This guide outlines what you’ll need to invest in when starting a laser engraving business. We'll cover machine options, essential accessories, material costs, workspace setup, marketing, and other startup expenses. Whether you're working with wood, acrylic, or metal, proper planning will set you up for long-term success. The goal is to give you a realistic range—from entry-level setups to professional-grade operations—so you can make informed decisions as you build your business.

1. Laser Engraving Machines

The single most important piece of equipment is your laser engraving machine, and the model you choose will significantly influence your startup cost. There are three main types of laser machines: CO₂, diode, and fiber. Each serves different purposes and materials, and your choice depends on what kind of products you plan to offer.

If you're just starting and want to keep your costs low, the OMTech K40+ 45W is an excellent entry-level CO₂ laser. Compact and affordable, this machine is well-suited for engraving wood, acrylic, leather, paper, and other non-metallic materials. It’s an excellent option for hobbyists or home-based businesses with limited space.

For those who want to start strong with higher productivity and more extensive work areas, the OMTech Maker AF2028-60 60W CO₂ laser is a powerful choice. With a larger bed size, autofocus, and higher wattage, it's ideal for small business owners who plan to take on a wide range of client projects, including cutting and engraving on thicker materials.

If you’re interested in engraving metals such as stainless steel, aluminum, brass, or titanium, a fiber laser is essential. Unlike CO₂ machines, fiber lasers can mark metals directly without the need for coatings or sprays. Though they are more expensive up front, fiber lasers offer unmatched performance for permanent metal marking.

Estimated machine cost range: $500 – $8,000+

2. Accessories and Add-Ons

You'll need several accessories to run a laser engraver efficiently and safely. While some are optional, many are strongly recommended for quality output and user safety.

An exhaust system helps remove smoke and fumes from your workspace. This is particularly important if you're engraving materials like wood, acrylic, or leather indoors. Although not always required if you have a well-ventilated workspace, it significantly improves air quality and reduces residue buildup inside your machine. 

Estimated cost for exhaust system: $50-$1,000+

A water chiller or pump is necessary for CO₂ lasers to keep the laser tube cool during operation. Overheating can reduce your machine’s lifespan and lead to inconsistent results. A water pump is the most basic cooling solution, but an active chiller is more efficient and reliable for long-term use.

Estimated cost for water chiller or pump: $30-$1,000+

Installing an air assist system improves cutting quality by blowing debris away from the laser path. This reduces flare-ups, especially during detailed cutting on flammable materials. All OMTech CO2 lasers include air assist.

Estimated cost for air assist: $40-$100+

Invest in a rotary attachment, which allows you to engrave cylindrical objects like tumblers, bottles, or mugs. This upgrade is essential if you plan to offer custom drinkware or glass engraving.

Estimated cost for rotary: $50-$300

Total estimated accessory cost range: $200 – $1,500

3. Materials and Consumables

To start fulfilling orders, you'll need a supply of materials to engrave and cut. These can include:

• Wood and plywood sheets (popular for signs, coasters, and ornaments)
  

• Acrylic sheets (great for signage and LED edge-lit displays)
  

• Leather and faux leather (used for patches and custom gifts)
  

• Blanks such as tumblers, keychains, tags, or cutting boards
  

• Metal tags or anodized aluminum plates for fiber laser users

You’ll also need consumable items, such as replacement lenses, mirrors (for CO₂ machines), and protective film or tape to cover sensitive materials during engraving. Depending on how often you utilize your laser engraving equipment, these can be replaced as often as every 6 months or longer. 

Most new business owners spend several hundred dollars on raw materials and consumables to build a basic inventory.

Estimated materials cost: $500 – $2,000

4. Software and Computer

Operating your laser machine requires design and control software. Many CO₂ lasers come with free software like RDWorks, but most professionals upgrade to LightBurn, which offers more user-friendly design tools and better compatibility with various lasers.

In addition to software, you’ll need a dedicated computer (laptop or desktop) to run your design programs and manage jobs. While most standard PCs will work fine, ensure your system meets the software's requirements.

Estimated software and computer cost: $500 – $1,500

5. Workspace Setup

Creating a functional and organized workspace improves both safety and efficiency. At a minimum, you’ll need:

• A workbench or table to support your machine
  

• Shelving or storage for materials, tools, and finished products
  

• Proper ventilation to safely remove smoke and fumes
  

• Safety gear like goggles, gloves, and a fire extinguisher

Costs may be minimal if you're working in a garage or spare room. However, if you’re renting a dedicated space or upgrading your workshop, budget accordingly.

Estimated workspace setup cost: $300 – $1,000

6. Marketing and Branding

Even with the best equipment, you won’t get far without customers. That’s why marketing and branding should be included in your startup plan.

You’ll need a website or online storefront to showcase your work. Platforms like Shopify, Etsy, or Squarespace can help you launch quickly. You may also invest in social media advertising, business cards, and essential branding like logos and packaging materials.

If you plan to sell locally, consider attending craft fairs or setting up at farmer’s markets—these often require booth fees, signage, and display fixtures.

Estimated marketing cost: $500 – $2,000

7. Business Licensing and Insurance

To operate legally and protect yourself from liability, you’ll also need to handle the business side. This includes:

• Registering your business (LLC, sole proprietorship, etc.)
  

• Getting any required local permits or tax IDs
  

• Purchasing insurance to cover equipment damage or client-related liability

Estimated licensing and insurance cost: $300 – $1,000

Total Estimated Startup Costs

Adding everything together, the cost to start a laser engraving business ranges from approximately $2,800 to $10,000+.

This wide range reflects whether you’re starting with a simple desktop CO₂ laser or investing in high-end fiber equipment with full production capabilities. Most side-hustle or home-based businesses can realistically launch with a $3,000–$6,000 investment, while more extensive operations will require more capital.

Final Thoughts

A laser engraving business offers incredible flexibility and creativity, but it starts with smart planning. From selecting the right machine to setting up your workspace and sourcing materials, every investment should align with your business goals.

Whether you're just getting started or scaling up your shop, OMTech offers a full lineup of reliable, affordable CO₂ and fiber laser engravers built to grow your business.

Ready to Launch Your Engraving Business?

Explore OMTech’s full selection of CO₂ and fiber laser machines, accessories, and resources to get your laser engraving business off the ground today.

Browse laser engravers at omtechlaser.com.