Planning estimates for scheduling and controls purposes; actual outcomes depend on project execution and management judgment. Aligned with AACE 16R-90 standards.
Equipment Owning & Operating Cost Calculator
Calculate hourly ownership depreciation rates, operating expenses, operator wages, and total job equipment allocation per AACE 16R-90.
Machinery Cost & Operating Inputs
Operating Expenses (USD/hr)
Equipment Cost Breakdown
Total = $73.00/hrHourly Cost Share Breakdown
Frequently Asked Questions (FAQ)
What are the two main components of equipment hourly rates?
Equipment rates consist of Ownership Costs (depreciation, interest, insurance, taxes) and Operating Costs (fuel, oil, tires/undercarriage, repairs).
How is straight-line equipment depreciation calculated?
Annual Depreciation = (Initial Purchase Price - Salvage Value) ÷ Estimated Useful Life (in years or operating hours).
What is the FMI / AGC formula for equipment ownership interest and insurance?
Annual Interest & Insurance = Average Investment Value × Combined Annual Rate (%), where Average Investment = [(N + 1) / 2N] × Initial Price.
How do fuel consumption rates vary with equipment load factor?
Fuel usage (gal/hr) = Engine Horsepower × Specific Fuel Consumption × Load Factor. High load factor (e.g. heavy digging) burns 30-50% more fuel than light idle work.
What is undercarriage wear cost in crawler excavators and dozers?
Undercarriage (tracks, rollers, sprockets) represents 45-50% of lifetime maintenance costs for crawler equipment, calculated on a per-operating-hour basis.
What is equipment economic life vs physical life?
Economic life ends when operating and repair costs per hour exceed the cost of replacing with a new machine. Physical life ends when the machine breaks down permanently.
When should a contractor rent vs buy heavy equipment?
Rent if annual utilization is below 50-60% (1,000 hrs/yr) or for specialized short-term jobs. Buy if utilization exceeds 65% across multiple consecutive projects.
What is equipment availability factor?
Availability (%) = (Total Operating Hours ÷ Planned Operating Hours) × 100. High-performing fleets target > 90% availability.
How are equipment mobilization and demobilization costs handled?
Transporting heavy machinery via lowboy trailers is billed as a separate lump-sum setup cost, not included in hourly operating rates.
What is the Caterpillar Performance Handbook method for O&O costs?
The Cat O&O method structures hourly cost calculations by separating machine purchase price, tire/track replacement, fuel, lube/filters, and repair reserve factors.