Ownership Cost per Hour Calculator
Estimate your ownership cost €/h from depreciation + maintenance + insurance. This is your baseline for pricing and decisions.
Inputs
Keep this simple and defensible. Add advanced stuff later.
Results
Ownership baseline (before market pricing).
Ownership cost
€28.58 / h
Annual fixed total: €34,300 (at 1,200 h/year)
Estimates only. Validate inputs and assumptions for your machine, location, and job conditions.
How Ownership Cost €/h Works
This calculator converts your annual ownership costs into a comparable hourly baseline. The core idea is simple: ownership has yearly costs that exist even if the machine is idle, and you spread those costs across the hours you expect to work.
- Residual value = Machine value × Residual %
- Depreciation / year = (Machine value − Residual value) ÷ Years
- Fixed annual ownership = Depreciation / year + Maintenance / year + Insurance / year
- Ownership €/h = Fixed annual ownership ÷ Hours / year
What this number is good for
- Comparing owning vs renting using the same “€/h” unit (apples to apples).
- Setting a defensible price floor before adding profit margin.
- Stress-testing utilization assumptions (hours/year drives the result).
Assumptions and limits
- Straight-line depreciation (simple and explainable, but not a perfect real-market curve).
- Maintenance is treated as an annual budget (not tied to hours or major repair cycles).
- Variable costs like fuel, operator, wear-per-hour, transport, and downtime are excluded.
FAQs
What does “ownership cost per hour (€/h)” mean?
It’s your fixed annual ownership costs (depreciation + maintenance budget + insurance) converted into a comparable hourly number by dividing by your planned hours per year. It’s a baseline cost floor for decisions and pricing.
Does this include fuel, operator, or job-specific costs?
No. This tool is a simple, defensible ownership baseline. Variable costs like fuel, wear per hour, operator wages, transport, and site conditions are not included here.
How is depreciation calculated in this tool?
It uses straight-line depreciation from machine value down to an assumed residual value over the chosen ownership period (years). Depreciation per year = (Machine value − Residual value) ÷ Years.
What should I use for hours per year?
Use your realistic utilization plan, not the theoretical maximum. Many machines fall in the 800–2000 h/year range, but it depends on the machine type, climate, seasonality, and workload stability.
What residual value percentage should I use?
Use a conservative resale assumption for your market and condition. A higher residual lowers depreciation (and €/h), but if it’s unrealistic you’ll underprice your true ownership cost.
How should I use this result for rental pricing?
Treat it as a baseline cost floor. Then move to the Rental Rate tool to add a margin and convert to €/day, €/week, €/month. After that, use Break-even Utilization to check whether demand can realistically cover your annual fixed costs.
Why does my €/h change a lot when I change hours per year?
Because you’re spreading annual costs over fewer or more working hours. If hours/year drops, €/h rises sharply. That’s the core reason utilization matters in heavy equipment economics.
Is this a full TCO model?
No. It’s intentionally “TCO-lite” so it stays explainable and fast. Full TCO can include financing, major repairs, tires/undercarriage cycles, downtime, compliance, and opportunity cost. You can add those later once the basics are trusted.