Equipment Rate Calc

Equipment Depreciation Calculator

Estimate straight-line depreciation, book value, hourly depreciation, and replacement reserve for compact equipment ownership planning. Results update automatically as inputs change.

Inputs

Ownership

Use the current loaded business cost, not a rough market guess.

Replace the default with the most recent number you can document.

Job assumptions

Replace the default with the most recent number you can document.

Replace the default with the most recent number you can document.

Use realistic paid or billable time and keep the unit consistent.

Profit & protection

Replace the default with the most recent number you can document.

Calculations stay in this browser unless you explicitly save or share.

Annual Depreciation0

How this calculator works

Annual depreciation = (purchase price - expected resale value) / useful life. Hourly depreciation = annual depreciation / annual billable hours.

Read the methodology and editorial policy

Use the result as a cost checkpoint

Use this calculator to account for the value a machine gives up while it works, even when there is no monthly payment left.

This tool is best for including machine value loss in cost per hour. Its primary decision is how much value loss belongs in each year and each billable hour of machine work. Review pricing paid-off equipment too cheaply, ignoring replacement cost, overestimating resale value, and failing to reserve for the next machine before relying on the result.

Worked example

A $65,000 machine with $25,000 expected resale over 6 years loses about $6,667 per year, or $9.52/hour at 700 billable hours.

Use conservative resale value and realistic annual billable hours so paid-off equipment is not priced like it is free.

Input and quote review

  • Use depreciation even when there is no loan payment.
  • Review resale value after major hours or damage.
  • Raise replacement reserve when new equipment prices climb.
  • Combine depreciation with repair reserve for true ownership cost per hour.

Keep the final scope, assumptions, exclusions, allowances, change triggers, and post-job results with the estimate so future defaults are supported by evidence.

Common questions

Is this the final customer price?

No. It is a planning checkpoint. Walk the site, confirm scope and access, verify current costs, and apply contract, permit, tax, utility, safety, and professional requirements.

Where are saved inputs stored?

Only an explicit Save stores inputs in this browser's localStorage. Share places inputs in the URL hash. The calculator does not send them to Equipment Rate Calc.

Should I copy a competitor's rate?

Use market prices as a reasonableness check after calculating your own cost, scope, utilization, risk, and margin.

Important disclaimerPlanning estimate only. Verify current costs, measurements, production, scope, access, customer requirements, contracts, permits, insurance, taxes, and local rules before quoting or committing money. This is not financial, tax, accounting, lending, investment, valuation, depreciation, or legal advice; confirm material decisions with qualified professionals and official records.