The purpose of the following calculations is to guide your business in budgeting costs for machine hours as an input to your cost analysis and pricing.

These cost elements should be reviewed periodically for any changes in cost factors or to adjust for changes in the value of equipment.  You may also want to factor in potential differences that affect your competition locally or in different geographical market areas.  This calculator is only a guide and the accuracy of the entries, calculations, and decisions made by the user based on those calculations is solely the responsibility of the user.  You may find it worthwhile to gather comparative rates from your competitors for your analysis.  We hope you will find this to be a useful tool to Win the Business Race.

Purchased Cost or Value Insert the estimated value of the machine or an actual cost of a recent purchase.
Budgeted Life in Years Estimate the life-cycle of the machine, the number of years of productive life remaining for the machine.
Average Hours Sold Per Week This should be the average scheduled hours of production for the machine. Some shops may not want to include any rework in this average.
Operating Weeks Per Year The default entered here is 50 weeks assuming that there are ten holidays on your schedule.
Equipment Cost Per Hour
Floor Space
Floor Space Allocation Insert the amount of floor space committed to the machine and supporting work flow, in square feet.
Cost Per Square Foot Per Year
(Including CAM)
Insert your gross rental rate or an estimated rate if you own the building.
Cost For Machine Space Per Hour
Est. Operating KW Draw Obtain a usage estimate from your records or a machine vendor.
KWh Cost Find this on your utility bill.
Estimated Energy Cost Per Hour
Repairs and Consumables
Repairs/Maintenance Budget Per Year Obtain a usage estimate from your records or a machine vendor.
Consumables Budget Per Year Obtain a usage estimate from your records or a machine vendor.
Repairs and Consumables Per Hour
Machine Budgeted Cost Per Hour

Based on your entries, this is your approximate machine COST per hour, not PRICE. To calculate your PRICE, add in your overhead cost factor and expected profit percentage.

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