What it's for
A machine you own costs money by the hour: the value it loses, the money tied up in it, insurance and storage, then fuel, repairs and wear. This equipment cost per hour calculator worksheet puts all of that on one hourly figure for up to four machines side by side, so two or three machines can be compared on the same page.
An estimator or owner fills it in once per machine and again when a price, a fuel cost or the hours change. The result is a cost per hour you can carry into an estimate or onto a T&M ticket. It holds no overhead and no profit: the machine cost per hour is ownership plus operating, with the operator added only if you enter that rate.
Our equipment cost per hour calculator does the same arithmetic for one machine without the file. Our bid price calculator turns costs into a bid, and the guide to how to build a construction estimate shows where equipment fits. The operator's hourly rate comes from the labor burden spreadsheet, and the overhead rate worksheet covers the business costs this one leaves out.
What's inside
Two sheets, both protected with no password. Pale yellow cells are yours to fill in; all other cells are locked.
Equipment is an internal sheet, so it carries our logo with no spot for yours. A Machine row gives each of four columns a name. OWNERSHIP takes Purchase price, Salvage value at end of life, Useful life (years), Hours used per year, Cost of money (% a year), Insurance per year, Storage and yard per year and Licenses and taxes per year. Six calculated lines follow, ending in Ownership cost per hour. OPERATING takes Fuel gallons per hour, Fuel price per gallon, Maintenance and repairs per hour and Tires, tracks and wear parts per hour, and calculates Fuel per hour and Operating cost per hour. TOTAL gives Machine cost per hour, takes Operator cost per hour, and calculates Cost per hour with operator. A column of notes on the right says in words how each calculated line is figured. It prints portrait on one page.
About this template holds three steps, the example figures, the version, the license and links.
How to fill it in
- Name each machine in the Machine row. Machine 1 holds the example; columns 2 to 4 start blank.
- Type the Purchase price and Salvage value at end of life. Each takes a number, 0 or more. Nothing checks that salvage is below the price: a higher salvage gives a negative depreciation line.
- Type the Useful life (years), from 0 to 50, and the Hours used per year. Every per-hour line in a column stays blank until both are above 0, the fuel line included.
- Type Cost of money (% a year) with the percent sign, from 0% to 100%. The file figures it on the average of the price and the salvage value, over the hours used per year.
- Type the yearly Insurance, Storage and yard and Licenses and taxes. The file divides each by the hours. A blank counts as 0.
- Under OPERATING, type the fuel gallons and price, and the maintenance and the wear parts, both already per hour.
- Type the Operator cost per hour if you want it added. The sheet's note calls it a burdened rate. Left blank, it counts as 0, and the last line equals the machine cost.
Depreciation is straight-line: the price less the salvage value, over the useful life times the hours used per year. The file uses the same hours every year.
The worked example
Machine 1 is labeled "Example: compact track loader." It is bought for $72,000.00 with a salvage value of $22,000.00, a useful life of 6 years and 1,000 hours a year, at a cost of money of 7%. Insurance is $1,800.00 a year and storage and yard $600.00, with nothing typed for licenses and taxes. Fuel is 3.2 gallons an hour at $3.90, maintenance $6.50 and wear parts $4.00 an hour, and the operator $38.00 an hour. The About tab says to replace these.
| Line | Per hour | Worked from |
|---|---|---|
| Depreciation | $8.33 | ($72,000.00 less $22,000.00) ÷ (6 × 1,000) |
| Cost of money | $3.29 | ($72,000.00 + $22,000.00) ÷ 2 × 7% ÷ 1,000 |
| Insurance | $1.80 | $1,800.00 ÷ 1,000 |
| Storage and yard | $0.60 | $600.00 ÷ 1,000 |
| Licenses and taxes | $0.00 | blank |
| Ownership cost | $14.02 | the five lines above |
| Fuel | $12.48 | 3.2 × $3.90 |
| Operating cost | $22.98 | $12.48 + $6.50 + $4.00 |
| Machine cost | $37.00 | $14.02 + $22.98 |
| Cost with operator | $75.00 | $37.00 + $38.00 |
The file adds the rounded lines, so the five ownership lines sum to the $14.02 shown.
Frequently asked questions
Does it calculate anything?
Yes. Every per-hour line, the ownership, operating and machine costs and the cost with operator are live formulas. The machine names and the figures in the yellow cells are yours.
Does it work in Google Sheets or Numbers?
Both open .xlsx files. This one has no macros, and its formulas use only IF, OR and ROUND.
Is it a rental rate?
No. It works out what a machine you own costs per hour from the figures you type. A rental quote is not an input, and no rental rate is computed.
What cost of money should I enter?
Your own percent a year. The file sets no rate and applies it to the average of the price and the salvage value.
Can I add a fifth machine?
No. The sheet has four machine columns. Keep a second copy of the file for more.
Can I put my logo on it?
It carries our logo, with no spot for yours. With the protection off (there's no password), you can swap in your own.
Is it accounting or financial advice?
No. The file is arithmetic on the figures you type. It makes no loan, tax, accounting, lender or surety claim and does not check your figures against your books. It does not decide what a machine is worth or how long it lasts.