A polyacrylonitrile (PAN)-based carbon fiber (CF) manufacturing cost estimation model driven by mass is presented in this study. One of the biggest limiting factors in the large-scale use of carbon fiber (CF) in manufacturing is its high cost. The costs involved in manufacturing the carbon fiber have been formalized into a cost model in order to facilitate the understanding of these factors. This can play a key role in manufacturing CF in a cost-effective method. This cost model accounts for the fixed and variable costs involved in all the stages of manufacturing, in addition to accounting for price elasticity.