Machine Cost Calculator

Select machine type

Select unit for this calculation

Fixed cost

GBP
If you have just bought the machine, then use the price you paid. If the machine is old, then use the price you would get if you sold it today.
0.1154 %
The cost of capital is based on the market interest rate. For loan financing of the investment, it is most common to use the borrowing rate. In... case of self-financing, one can apply the interest that could have been obtained (e.g if the money were placed in bonds).
12010 yr
Enter the number of years you expect to use the machine before it is sold again.
61812 %
Machines typically lose 6-18% of their value each year. This is deducted using the declining balance method, which means that a machine... worth £100,000 with an annual depreciation of 12% will lose 100,000 * 12% = £12,000 of it's value the first year and (100,000-12,000) * 12% = £10,560 the second year etc.
GBP/year
Enter the total annual insurance costs for the machine this calculation concerns.

Variable cost

GBP/man hour
Total payroll to driver per man hour. Remember to include pension, allowance etc.
litre/machine hour
Diesel consumption depends primarily on the size and load of the engine. If you do not know your diesel consumption at all, a rule of thumb is... 12 litres of diesel per 100 hp per machine hour at moderate load.
0.0121 GBP/litre
Enter the price/litre you pay your supplier of diesel.
121.2
There will always be more than one "man hour" per "machine hour", since breaks are required, spare parts need to be changed, etc.
GBP/machine hour
Enter tractor cost per machine hour (excl. diesel and driver salary).
GBP/machine hour
Specify the hourly maintenance and repair costs of the machine. Remember to include both costs of spare parts and wages. Tip: Estimate... the cost of workshop hours and spare parts over the last year and divide by the number of hours you used the machine that year.

Machine performance

hectares/year
Estimate how much you will use the machine on a yearly basis.
0.1203 hectares/machine hour
Enter the capacity of your machine. Note that this is capacity per machine hour - not capacity per man hour.

Cost of contractor

GBP/hectares
Enter the price you would pay if a local contractor did the task.

Calculation

GBP/yearTotal fixed cost 0
GBP/yearTotal variable cost 0
GBP/yearTotal fixed and var. cost 0
GBP/hectaresCost per hectare 0
GBPResidual value 0
Amortization factor 0.00
Total machine hours 0
Total man-hours 0
GBP/yearInterest and depreciation 0
GBP/yearReturn on residual value 0
GBP/yearInsurance 0
GBP/yearService of machine 0
GBP/yearTractor 0
GBP/yearDiesel 0
GBP/yearDriver salary 0
GBP/yearUse of contractor 0
GBP/yearUse of own machine 0
GBP/yearDifference 0
hectares/yearBalance point 0

    • Calculation

      GBP/yearTotal fixed cost 0
      GBP/yearTotal variable cost 0
      GBP/yearTotal fixed and var. cost 0
      GBP/hectaresCost per hectare 0
      GBPResidual value 0
      Amortization factor 0.00
      Total machine hours 0
      Total man-hours 0
      GBP/yearInterest and depreciation 0
      GBP/yearReturn on residual value 0
      GBP/yearInsurance 0
      GBP/yearService of machine 0
      GBP/yearTractor 0
      GBP/yearDiesel 0
      GBP/yearDriver salary 0
      GBP/yearUse of contractor 0
      GBP/yearUse of own machine 0
      GBP/yearDifference 0
      hectares/yearBalance point 0