Machine Hourly Rate Calculator

How this is calculated

Four cost components, each converted to a per-hour figure and summed. Every input is yours; nothing here is a promise or a benchmark.

What to keep in mind

• Straight-line depreciation, zero salvage. The model spreads the purchase price evenly over life and assumes no resale value. If your machine holds value, subtract expected salvage from the price first.
• Utilization drives the rate. Fewer operating hours per year spread depreciation and maintenance over less time, so the hourly rate rises. Idle machines are expensive machines.
• Not counted here: tooling and consumables, floor space, insurance, financing cost, and scrap. Add them if you quote jobs off this rate.
• Load factor is an average. Machines rarely draw rated power continuously; 60-80% is a common range, but check your own meter data if you have it.

Once you know the hourly rate, an hour of unplanned downtime has a floor price; size it with the downtime cost calculator and the machine downtime guide. To see how much of each hour is actually productive, use the OEE calculator or read the OEE calculation guide. To justify an investment against this rate, try the payback period calculator.