Based on my understanding, the Holocaust was a murderous system involved hundreds of thousands of people directly or indirectly, used industrial methods for killing Jews, had transportation systems such as railways that supported it. To me it seems that a huge drain on resources when it had no military value. Was this a huge waste of resources on Germany war-making abilities?
The direct economic cost of executing millions of people was surprisingly small. As one example, the death camp at Treblinka murdered about 900,000 people over an 18 month period spanning 1942 and 1943. During this time, the camp was typically staffed by about 25 German officers and soldiers and 100 locally-recruited workers. Most victims were executed via the exhaust from a salvaged (Soviet) tank engine, the rest by bullet or being buried alive.
The camp's biggest burden on the German economy would have been its use of rolling stock to transport the victims. At its peak Treblinka was executing 2,000 to 2,500 victims per day, which would have meant just 20 to 25 well-packed boxcars per day. I don't know the exact numbers on German rolling stock during the war, but their boxcars/wagons numbered in the hundreds of thousands.