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Teklif Atölyesi
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Machine hour rate calculator

Enter the machine’s purchase price, lifetime, yearly working hours and running costs; see the real cost of one working hour (and minute), line by line.

Calculated in your browser; the numbers you enter are never sent anywhere.

Machine
$
$
yrs
h

Hours actually spent producing: for example 8 hours × 225 working days = 1,800 hours. Idle hours do not count.

Energy and maintenance
kW
$/kWh
$
Operator and overhead
$
%
$
%
%

Optional: the return on the money tied up in the machine. Average capital × rate.

Hourly rate
$24.61
Per-minute rate
$0.4102
Yearly cost
$44,306.29
over 1,800 hours
Hourly cost breakdown
Depreciation($32,000.00 − $3,200.00) ÷ 7 yrs ÷ 1,800 h$2.28
Cost of capital($32,000.00 + $3,200.00) ÷ 2 × 0% ÷ 1,800 h$0.00
Energy3 kW × $0.18$0.54
Maintenance$1,300.00 ÷ 1,800 h$0.72
Operator$2,800.00 × 12 × 100% ÷ 1,800 h$18.67
Overhead$1,800.00 × 12 × 20% ÷ 1,800 h$2.40
Hourly rate$24.61

Use the hourly rate, or $0.4102 per minute, for this machine’s operation in your quotes; your margin is added on top.

How is it calculated?

A machine hour rate is the full cost of one production hour of a machine: depreciation, (optionally) cost of capital, energy, maintenance, the operator’s share and the machine’s share of the workshop overhead.

Depreciation = (purchase price − resale value) ÷ lifetime ÷ yearly working hours. Yearly hours are the time the machine actually produces; an idle machine raises its hourly rate.

If one operator runs two machines, enter a 50% operator share. Add this machine’s share of overheads such as rent, lighting and administration; otherwise your quotes will not cover them.

Teklif Atölyesi writes the hourly rate into the operation’s price (per hour or per minute); when a time is entered in a quote, cost and margin are calculated automatically.

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