Increasing environmental demands from governmental bodies and customers stress the importance of companies improving their environmental performance. The research presented here shows that productivity and cost efficiency improvements can be achieved alongside energy savings in a computer numerically controlled machining environment. This improves the profitability of the companies, but also leads them towards more sustainable and environmentally aware manufacturing; the relationship between machining parameters, machining costs, and energy consumption is evaluated. From this perspective, it is important that production planners etc. understand the methodological possibilities for improvements in cost and energy efficiency. The current research is based on a machining cost model and experiments where energy consumption and tool wear were monitored.