Equipment ownership cost calculator worksheet

Equipment snapshot

Item	Notes
Equipment type	Excavator / skid steer / loader / dozer / telehandler / other
New or used
Make, model, and year
Purchase price
Expected resale value
Planned ownership period
Expected annual hours
Rental alternative cost	Daily / weekly / monthly / hourly

Fixed ownership costs

Cost item	Annual amount	Notes
Depreciation or value loss		Purchase price minus expected resale, spread over ownership period
Financing interest
Insurance
Taxes, registration, or fees
Storage or yard cost
Telematics or subscriptions
Annual inspections

Operating costs

Cost item	Cost per hour	Notes
Fuel or charging
DEF or fluids
Routine maintenance		Filters, grease, oil, service kits
Wear parts		Tires, tracks, teeth, cutting edges
Repairs		Use a conservative reserve
Attachments		Purchase, rental, or wear allocation
Operator labor		If comparing self-perform vs subcontract
Transport and mobilization		Lowboy, trailer, permits, fuel

Hourly ownership estimate

Step	Formula	Your number
Annual fixed costs	Add fixed ownership costs
Annual operating costs	Hourly operating cost x annual hours
Total annual cost	Fixed + operating
Ownership cost per hour	Total annual cost / annual hours
Rental comparison	Rental cost + delivery + fuel + attachments
Break-even annual hours	Annual fixed costs / hourly savings versus rental

Utilization reality check

Question	Notes
How many billable hours can this machine realistically work each year?
Are there seasonal gaps?
Can the machine serve multiple job types?
Will a dedicated attachment sit unused?
What happens during breakdowns?
Is transport capacity already available?
Who performs maintenance and keeps records?

Buy, rent, or finance decision notes

• Buy when utilization is predictable, maintenance support is available, and the machine gives scheduling or margin advantages.
• Rent when project needs vary, transport is difficult, or a specialized machine is needed for a short duration.
• Finance only after modeling cash flow, insurance, repairs, and resale risk.
• Compare used equipment savings against downtime, inspection findings, warranty gaps, and parts availability.
• Keep tax depreciation separate from cash reality. Tax treatment can help, but it does not remove repair, fuel, transport, and downtime costs.

Red flags to slow down

• The purchase only works if the machine has unrealistically high billable hours.
• No repair reserve is included for used equipment.
• Transport costs are ignored.
• Financing terms are compared only by monthly payment.
• Safety inspections, maintenance records, and operator training are treated as optional.
• The machine is too large, too small, or too specialized for the actual job pipeline.