Free Equipment Cost Calculator
Calculate equipment operating costs including depreciation per hour and maintenance. Determine the true hourly cost of running your equipment.
Total Equipment Cost (this period)
$1,300.00
Total Equipment Cost (this period) vs Purchase Price
How to Calculate Equipment Costs
Formula
Total Equipment Cost = (Purchase Price / Useful Life Hours) x Usage Hours + Maintenance
This formula accounts for depreciation (the cost of owning the equipment spread over its useful life) plus periodic maintenance costs. Knowing your true equipment cost per hour helps you price jobs accurately.
Example Calculation
An excavator purchased for $50,000 with a 10,000-hour useful life, used 160 hours this month with $500 in maintenance.
- 01Depreciation per hour = $50,000 / 10,000 = $5.00/hr
- 02Depreciation this period = $5.00 x 160 = $800
- 03Total cost = $800 + $500 = $1,300
- 04All-in cost per hour = $1,300 / 160 = $8.13/hr
Frequently Asked Questions
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