Pro Resources
Equipment Cost of
Ownership Calculator
Most contractors know their payment. Fewer know their true cost per hour. This tool shows what a machine actually costs you to own and run, so you can price jobs around real numbers.
True Cost Per Hour
Fill in what you know. Blanks count as zero, so you can start rough and tighten it up later.
Ownership Costs
What you expect to sell or trade it for
Check the hour meter, not the guess
$0
$0$50k$100k$150k$200k
Monthly payment$0
Total interest over the loan$0
Only the interest counts toward your cost. The principal comes back to you as equity, and the calculator already covers it through depreciation.
Operating Costs
Fully loaded wage. Leave blank for machine-only cost
Oil, filters, hoses, shop time, the usual
Tracks, tires, teeth, cutting edges
True cost per hour
Ownership per hour
Costs you pay even when it sits
Operating per hour
Costs that run when the machine runs
Total per year
What to Charge For This Machine
Low End
40% gross margin
Recommended
Target Rate
50% gross margin
High End
60% gross margin
Margin, not markup: at a 50% gross margin, your cost is half of what you bill, so the rate is cost divided by 0.5, not cost plus 50%. The spread above the machine cost is what covers overhead and actually pays you. Rates are rounded up to the next $5.
Where the money goes (per hour)
Use it like this: if your true cost per hour is higher than what you charge for that machine, the machine is eating your margin. Run it for every major unit in the fleet, then price accordingly. Fewer annual hours means every hour costs more, which is the honest argument for renting the stuff you rarely use.
Want help with the business side?
This is the stuff we cover on The Six Figure Exit, and the kind of help QUARRA Pros get from us directly.