Machinery Cost Calculator

Calculate Machinery Cost Per Hour





Formula

The formula to calculate the machinery cost per hour is:

\[ \text{MC} = \frac{\text{P} - \text{SV}}{\text{LS}} \]

Where:

What is Machinery Cost Per Hour?

Machinery cost per hour refers to the cost of using a piece of machinery for one hour. It is calculated by subtracting the eventual salvage value from the purchase price and then dividing by the useful life span of the machinery. This metric is important for budgeting and cost management in industries that rely on heavy machinery.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{MC} = \frac{100000 - 10000}{10000} = 9 \text{ \$/hr} \]

The Machinery Cost Per Hour is $9/hr.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{MC} = \frac{200000 - 20000}{20000} = 9 \text{ \$/hr} \]

The Machinery Cost Per Hour is $9/hr.