How the estimate works
The calculator splits the hourly cost into two parts. Ownership cost is the purchase price minus expected resale value, spread across the years you keep the machine and the hours it works each year. Annual insurance and financing are added on top, also divided by yearly hours.
Operating cost is fuel use per hour times fuel price, plus annual repairs, maintenance and wear divided by yearly hours. The total is ownership plus operating. The operator wage is added separately, so you can see the machine on its own and the machine with a person on it.
Your inputs and results are not stored. The numbers stay in this browser tab, are not saved and are not sent anywhere. Reload the page and the form is empty again.
Getting the inputs right
Use real figures where you have them. Purchase price and resale value come from your books or a recent auction result. Hours worked per year should be actual meter hours, not the hours you wish the machine ran. A machine that sits idle half the year costs more per working hour than one that runs steadily.
Repairs and maintenance should include parts, labour and outside shop invoices. Wear covers items that run out, such as tires, tracks, cutting edges and undercarriage. If you are not sure, use last year as a starting point.
Keep fuel units matched. If you choose litres, enter litres per hour and the price per litre. If you choose US gallons, enter gallons per hour and the price per gallon. The toggle only changes the labels. It does not convert your numbers. The currency selector works the same way: it changes the symbol only and does not convert.
What to do with the result
Use the hourly figure to price jobs, compare owning against renting, or judge whether an ageing machine is still earning its keep. It is an estimate based on the values you enter, so treat it as a planning number, not a quote.
The hourly figure is a cost estimate, not a selling rate. When pricing a job, consider the hours the machine will actually work and the other costs of delivering the job. Overhead, transport and your margin are not included in this tool. Compare a repair estimate with the machine’s expected hours and resale value before deciding to repair or replace it. Run the numbers again with a different repair budget or ownership period to see what changes.
The figure is only as good as your repair records. Zerk keeps cost per machine against each asset, so the repair number comes from your history. See the homepage’s cost visibility section for how that works, or try the PM due date calculator next.