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Machine-hour rate calculator

Enter the equipment cost, service life, annual operating hours, maintenance spend, power draw and operator rate. The calculator works out the full cost of one machine-hour.

Equipment

Scheduled repairs, spare parts, consumables — usually 3–8% per year

Operation

Result

Cost per hour of operation

—

Depreciation and maintenance per hour —
Electricity per hour —
Operator labor per hour —

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Annual depreciation = equipment cost ÷ service life. Annual maintenance = equipment cost × maintenance percentage ÷ 100. Both are divided by annual operating hours — turning a fixed yearly cost of ownership into a cost per hour.

Electricity per hour = power draw × tariff. Operator labor per hour is taken as given — if one operator runs several machines at once, split the rate across them first.

Cost per hour = depreciation and maintenance + electricity + operator labor. This is the internal machine-hour rate for pricing a job — it deliberately excludes profit and shop-wide overhead, which get added separately.

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