How to Calculate Equipment Costs per hour. What does it cost your company, on an hourly basis, to have equipment on the jobsite?
Whether you have a mower, a compact tractor, or an excavator on the jobsite, learning how to calculate the cost-per-hour for each piece of machinery that your company owns and uses on a job site is a great tool for understanding, and even eventually, recouping the actual cost of the machine itself.
Most contractors have a rough idea of these costs – but these days is a rough idea good enough? We don’t think so.
Equipment cost-per-hour rates are calculated by adding together three (3) distinct pieces of information. Watch this YouTube video to learn how to calculate the cost of your equipment.
Once you know what the hourly cost of your machines is, you can then learn how to get these important costs into your job costing reports so that these reports provide you with a full and accurate picture of your overall profit on a construction project.