Equipment Rate Calc

Equipment Total Cost of Ownership Calculator

Combine depreciation, insurance, storage, maintenance, and fuel into annual, hourly, and lifetime ownership cost. Results update automatically as inputs change.

Inputs

Ownership

Enter the acquisition price plus setup costs required to place the equipment in service.

Use a conservative net sale or trade-in value at the end of the ownership period.

Enter the annual premium attributable to this machine and its required coverage.

Allocate yearly storage, registration, software, and administrative costs not counted elsewhere.

Job assumptions

Choose the period you expect to own and operate the equipment before disposal or trade.

Use productive annual hour-meter time; keep the same basis when comparing ownership scenarios.

Profit & protection

Build the hourly reserve from scheduled service, wear parts, and expected repair history.

Operating cost

Use measured gallons per productive engine hour for the machine and work mix being evaluated.

Use the delivered fuel price expected over the analysis period and revisit it for sensitivity checks.

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

Total Cost / Hr0

How this calculator works

Annual ownership = straight-line value loss + insurance + storage. Operating cost = maintenance reserve + fuel burn × fuel price.

Read the methodology and editorial policy

Use the result as a cost checkpoint

Estimate the cost of owning and operating equipment across its planned holding period without treating the payment as the whole cost.

This tool is best for purchase planning and hourly cost reviews. Use the result to decide what the machine may cost across its planned life and expected use. Review low utilization, uncertain resale value, repairs, fuel changes, and downtime before relying on the result.

Worked example

A $65,000 machine expected to retain $25,000 after five years has $8,000 of annual value loss before insurance and storage.

Run conservative annual-hour and residual-value cases before buying, then review cash flow and economic cost separately with the total cost of ownership guide.

Input and quote review

  • Separate financing cash flow from economic value loss.
  • Use actual manufacturer service intervals and your repair history.
  • Revisit the calculation after major component work.

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 cost per operating hour the same as a customer billing rate?

No. It is an internal ownership-and-operating cost. A selling rate may also need operator labor, business overhead, mobilization, job risk, taxes, and profit.

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.

How should I compare machines with different lives or utilization?

Use the same analysis period and operating-hour basis, include each machine's residual value, and test low- and high-utilization cases. A lower purchase price does not guarantee a lower cost per hour.

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.