This paper proposes a cycle time estimation algorithm of a CNC machine tool, using a block overlap based tool path generation algorithm. Velocity profile generation algorithm of CNC interpolator is proposed to compute the cycle time of the G-Code block. Because the CNC blends adjacent velocity profiles to reduce the cycle time and smooth the tool path, the cycle time is adjusted considering the block overlap. The in-position time of rapid traverse is compensated to improve the cycle time estimation accuracy. The simulation model was designed to estimate the cycle time of the CNC machine tool. A three-axis feed drive testbed was used to evaluate the cycle time estimation accuracy of the proposed algorithm.