Cutting fluid is a factor which has big effects on both machinability and environment in machining process. The loss of cutting fluids may be reduced by the optimization of machining parameters in process planning. In this study, the environmental impact of fluid loss is analyzed. The fluid loss models in milling process are constructed with the machining parameters. The models are utilized to obtain the optimal machining parameters to minimize the fluid loss. The factors with significant effects on the fluid loss are analyzed by ANOVA test. Finally, optimal parameters are suggested considering both machining economics and environmental impact. This study is expected to be used as a part of a framework for the environmental impact assessment of machining process.