.eq-calc-container {
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #ddd;
border-radius: 8px;
background-color: #f9f9f9;
color: #333;
}
.eq-calc-header {
text-align: center;
margin-bottom: 30px;
}
.eq-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.eq-calc-grid { grid-template-columns: 1fr; }
}
.eq-calc-group {
margin-bottom: 15px;
}
.eq-calc-label {
display: block;
font-weight: 600;
margin-bottom: 5px;
font-size: 14px;
}
.eq-calc-input {
width: 100%;
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
.eq-calc-btn {
grid-column: span 2;
background-color: #e67e22;
color: white;
padding: 15px;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
@media (max-width: 600px) { .eq-calc-btn { grid-column: span 1; } }
.eq-calc-btn:hover {
background-color: #d35400;
}
.eq-calc-result-box {
margin-top: 30px;
padding: 20px;
background-color: #fff;
border: 2px solid #e67e22;
border-radius: 8px;
}
.eq-calc-result-item {
display: flex;
justify-content: space-between;
padding: 8px 0;
border-bottom: 1px dashed #eee;
}
.eq-calc-total-rate {
font-size: 24px;
font-weight: bold;
color: #e67e22;
text-align: center;
margin-top: 15px;
}
.eq-article-section {
margin-top: 40px;
line-height: 1.6;
}
.eq-article-section h2 {
color: #2c3e50;
border-bottom: 2px solid #e67e22;
padding-bottom: 10px;
}
.eq-article-section h3 {
margin-top: 25px;
color: #d35400;
}
Understanding Heavy Equipment Hourly Rates
Determining the correct hourly rate for heavy machinery—whether it's an excavator, bulldozer, or wheel loader—is critical for construction business profitability. If you charge too little, you won't cover your eventual replacement costs; if you charge too much, you lose the bid.
1. Ownership vs. Operating Costs
Calculating the rate involves two primary buckets:
- Ownership Costs: These are fixed costs that exist regardless of whether the machine is running. This includes the purchase price depreciation, insurance, taxes, and interest if financed.
- Operating Costs: These are variable costs incurred only when the machine is working. This includes fuel, lubricants, tires/tracks, and wear-and-tear maintenance.
2. The Calculation Formula
Our calculator uses the industry-standard "Total Cost of Ownership" (TCO) method:
Step A: Hourly Depreciation
(Purchase Price – Resale Value) / (Useful Life in Years × Annual Hours)
Step B: Hourly Operating Cost
(Annual Maintenance / Annual Hours) + (Fuel Consumption × Fuel Price)
Step C: Final Rate
(Depreciation + Operating Cost + Labor) × (1 + Profit Margin %)
3. Real-World Example
Imagine you buy a Backhoe for $100,000. You expect to sell it in 5 years for $40,000. You plan to use it 1,000 hours per year.
- Depreciation: ($100k – $40k) / 5,000 hrs = $12.00/hr
- Fuel: 3 Gallons/hr × $4.00/gal = $12.00/hr
- Maintenance: $5,000 annual / 1,000 hrs = $5.00/hr
- Operator: $30.00/hr
- Subtotal: $59.00/hr
- With 20% Profit: $59.00 × 1.20 = $70.80/hr
Key Factors to Consider
Idle Time: Remember that machines often idle. If your machine idles 20% of the time, your fuel costs per "working hour" effectively increase. Always track your telematics data to refine these inputs.
Economic Life: The "Useful Life" isn't when the machine dies; it's when the cost of maintenance exceeds the cost of a new machine's monthly payment. Most heavy equipment reaches this point between 5,000 and 10,000 hours.
function calculateHourlyRate() {
// Get values
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var resaleValue = parseFloat(document.getElementById('resaleValue').value) || 0;
var usefulLife = parseFloat(document.getElementById('usefulLife').value) || 0;
var annualHours = parseFloat(document.getElementById('annualHours').value) || 0;
var annualMaint = parseFloat(document.getElementById('annualMaint').value) || 0;
var fuelConsumption = parseFloat(document.getElementById('fuelConsumption').value) || 0;
var fuelPrice = parseFloat(document.getElementById('fuelPrice').value) || 0;
var operatorWage = parseFloat(document.getElementById('operatorWage').value) || 0;
var profitMargin = parseFloat(document.getElementById('profitMargin').value) || 0;
// Validation
if (usefulLife <= 0 || annualHours <= 0) {
alert("Please enter valid numbers for Useful Life and Annual Usage.");
return;
}
// Calculations
var totalHoursLife = usefulLife * annualHours;
var hourlyDepreciation = (purchasePrice – resaleValue) / totalHoursLife;
if (hourlyDepreciation < 0) hourlyDepreciation = 0;
var hourlyMaint = annualMaint / annualHours;
var hourlyFuel = fuelConsumption * fuelPrice;
var hourlyLabor = operatorWage;
var subtotal = hourlyDepreciation + hourlyMaint + hourlyFuel + hourlyLabor;
var finalRate = subtotal * (1 + (profitMargin / 100));
// Display Results
document.getElementById('resDepreciation').innerText = '$' + hourlyDepreciation.toFixed(2) + ' /hr';
document.getElementById('resMaint').innerText = '$' + hourlyMaint.toFixed(2) + ' /hr';
document.getElementById('resFuel').innerText = '$' + hourlyFuel.toFixed(2) + ' /hr';
document.getElementById('resLabor').innerText = '$' + hourlyLabor.toFixed(2) + ' /hr';
document.getElementById('resTotal').innerText = '$' + finalRate.toFixed(2) + ' /hr';
document.getElementById('resultBox').style.display = 'block';
}