In the past, the cutting conditions that meet the economic and environmental objectives of the specified manufacturing process were selected based on minimum tooling cost and/or minimum electrical energy criterion. However, detailed modelling of electrical energy based on tool life and cost criterion has not been addressed. In this study, machining tests were conducted to develop a cost model which includes machining energy, and to assess the impact of the extended tool life model with regards to selection of cutting conditions, electricity cost and tool wear effect that satisfy these objectives. The model was validated with an industrial case study. Results show that cost savings at minimum energy were achieved. Hence, substantial cost savings could be achieved by selecting optimized machining parameters which could reduce machining costs by 47% compared to using tool supplier recommended feeds, depth of cut and cutting velocity. Thus, cost could be optimized fairly accurately without explicitly modelling energy demand due to the relative low contribution of energy costs compared to tooling costs. The optimized energy costs leads to minimum associated carbon footprint and reduces overall product cost. This creates an incentive for manufacturing companies to investigate the sustainability and energy efficiency of their manufacturing processes.