Machine Hourly Rate Calculator
Determine the total owning and operating cost per hour
Ownership (Fixed) Costs
Operating (Variable) Costs
Calculation Summary
Total Machine Rate
$0.00 / hr
$0.00 / hr
Understanding Machine Rate Calculation
A machine rate represents the estimated cost per unit of time (usually per hour) for owning and operating a piece of equipment. This calculation is vital for contractors, forestry managers, and manufacturers to set rental rates, bid on projects, and manage equipment lifecycles.
Key Components of the Rate
- Fixed Ownership Costs: These costs occur regardless of whether the machine is running. They include depreciation (loss of value over time), interest on capital, insurance, and taxes.
- Variable Operating Costs: These costs are only incurred when the machine is active. This includes fuel, lubricants, filters, tires, and routine maintenance/repairs.
- Labor Costs: The hourly wage of the operator plus any associated benefits or overhead.
Example Calculation
Consider a bulldozer purchased for $150,000 with a 5-year lifespan. If it runs 2,000 hours a year and has a salvage value of $30,000:
- Depreciation: ($150,000 – $30,000) / (5 years * 2,000 hours) = $12.00/hr.
- Average Investment: Calculated based on the midpoint value over the lifespan to determine interest and insurance costs.
- Fuel: If it consumes 5 gallons/hr at $4.50/gal, that is $22.50/hr.
- Repairs: If repairs are 90% of total depreciation over its life, that adds roughly $10.80/hr.
Summing these with an operator wage of $35/hr results in a comprehensive machine rate that ensures the business covers all hidden costs and remains profitable.
Fixed (Depreciation): $' + hourlyDepreciation.toFixed(2) + '/hr
';
html += 'Fixed (Int/Ins/Tax): $' + hourlyInterestIns.toFixed(2) + '/hr
';
html += 'Variable (Fuel): $' + hourlyFuel.toFixed(2) + '/hr
';
html += 'Variable (Lube/Filt): $' + hourlyLube.toFixed(2) + '/hr
';
html += 'Variable (Repairs): $' + hourlyRepairs.toFixed(2) + '/hr
';
html += 'Labor (Operator): $' + operatorWage.toFixed(2) + '/hr
';
breakdownOutput.innerHTML = html;
totalRateDisplay.innerHTML = '$' + grandTotal.toFixed(2) + ' / hr';
// Scroll to results
resultsArea.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
#machine-rate-calculator-container input:focus {
outline: none;
border-color: #2c3e50 !important;
box-shadow: 0 0 5px rgba(44, 62, 80, 0.2);
}
#machine-rate-calculator-container button:hover {
background-color: #1a252f !important;
}
@media (max-width: 600px) {
#machine-rate-calculator-container div[style*="grid-template-columns: 1fr 1fr"] {
grid-template-columns: 1fr !important;
}
}