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GENERAL CONTRACTOR

Equipment Hourly Cost Calculator

Estimate the true hourly cost of owning and running equipment.

JOB INPUTS

Enter your numbers

Loading saved values

Cost to buy the equipment

$
Cost to buy the equipment

Years of use

Years of use

Annual operating hours

hrs
Annual operating hours

Fuel cost per hour

$
Fuel cost per hour

Annual maintenance and repairs

$
Annual maintenance and repairs
Results update automatically
CALCULATED RESULTUSD
Equipment hourly cost$24.33
Depreciation / year$7,000.00
Fuel / year$27,000.00
Maintenance / year$2,500.00
Cost / year$36,500.00
FORMULA USED($35,000.00 ÷ 5.0 + 1,500.0h × $18.00 + $2,500.00) ÷ 1,500.0h = $24.33

HOW TO USE IT

How to use the Equipment Hourly Cost Calculator

  1. 1

    Enter the purchase price and lifespan.

  2. 2

    Set the annual operating hours.

  3. 3

    Add fuel and maintenance.

  4. 4

    Review the equipment hourly cost.

THE MATH

Equipment hourly cost formula

Cost/hr = (depreciation + fuel + maintenance) ÷ hours

Depreciation spreads the purchase price over years of use. Fuel and maintenance are added, then the total is divided by annual hours.

PRACTICAL EXAMPLE

$35,000, 5 yrs, 1,500 hrs/yr, $18/hr fuel, $2,500 maintenance

Depreciation = 35,000 ÷ 5 = $7,000. Fuel = 1,500 × 18 = $27,000. Total = $36,500. Cost/hr = 36,500 ÷ 1,500 = $24.33.

FAQ

Frequently asked questions

Why include depreciation?

It reflects the equipment's loss of value over its lifespan.

Does hourly cost include the operator?

No — add the operator's wage and burden.

How do I lower the cost?

Run more hours per year or maintain equipment regularly.