Machinery Cost Calculator & Cost per Hour & Acre
Costs tractors
Know what your machine really costs — the true cost per hour and per acre, the fixed vs operating split, and a fair custom-hire rate to charge.
Enter your machine
Next: compare your ₹1,025/hr to local custom-hire rates — if hiring is cheaper, rent instead of owning; or push annual use above 600 h to spread the fixed cost over more hours and cut your per-hour cost.
Fixed cost uses straight-line depreciation plus interest on the average investment; operating cost rises with fuel, repairs and labour. Verify against your own records.
Machinery cost — key facts
- Total cost
- fixed + operating per hour
- Depreciation
- (price − salvage) ÷ life
- Interest on
- average investment
- Operating
- fuel + lube + repairs + labour
- Repairs
- ≈ 3–7% of price/yr
- Cost / acre
- cost/hr ÷ acres/hr
- Hire rate
- cost/hr + 15–25% margin
- Privacy
- Runs in your browser; nothing uploaded
What your machine really costs to run
Most farmers know the diesel bill but underestimate the real cost of a machine, because the biggest costs are invisible: depreciation as it loses value, and the interest on the capital tied up in it. Add insurance, housing, repairs and labour, and a tractor can cost far more per hour than fuel alone suggests — especially if it works only a few hundred hours a year, since those fixed costs are spread thin.
This tool builds the full picture: the fixed (ownership) cost and the operating cost, combined into a true cost per hour and per acre, plus a fair custom-hire rate if you do work for others. Use it to decide whether to own or hire, to set a rate that actually covers your costs, and to see how working more hours a year drives the cost per hour down. Pair it with the Tractor Fuel Cost and Cost of Cultivation tools for the whole machinery budget.
See the hidden costs
Depreciation and interest, not just fuel — the true cost per hour.
Set a fair hire rate
Charge a rate that covers full cost plus a sensible margin.
Own or hire?
Compare your cost per hour to local hire rates at your usage.
Cut cost per hour
See how more annual hours spread the fixed cost and lower it.
Frequently Asked Questions
What does it really cost to run a tractor per hour?+
Add the fixed cost (depreciation, interest on the money tied up, insurance and housing) spread over the hours you use it, to the operating cost (fuel, lubricants, repairs and labour) per hour. A tractor used few hours a year has a high fixed cost per hour even if fuel is cheap. This tool computes the full figure.
What is the difference between fixed and operating cost?+
Fixed (ownership) costs accrue whether or not the machine works — depreciation, interest, insurance, shed/housing. Operating costs only happen when it runs — fuel, oil, repairs, operator labour. Fixed cost per hour falls the more you use the machine; operating cost per hour stays roughly constant.
How is depreciation calculated?+
This tool uses straight-line depreciation: (purchase price − salvage value) ÷ useful life in years. If a ₹8,00,000 tractor with 10% salvage lasts 10 years, it depreciates ₹72,000 a year. Salvage is what you'd sell it for at the end; life is realistic working years, not warranty years.
Why charge interest if I paid cash?+
Because the money sunk into the machine could have earned a return elsewhere (or is borrowed and really costs interest). Economists charge interest on the average investment — (price + salvage) ÷ 2 — to capture this opportunity cost. Ignoring it understates the true cost of ownership.
How do I work out cost per acre?+
Divide the total cost per hour by the work rate in acres per hour. A machine costing ₹850/hour that covers 1 acre/hour costs ₹850/acre; at 2 acres/hour it's ₹425/acre. Faster, wider implements spread the cost over more area — the tool shows the effect when you enter the work rate.
What should I charge for custom hire?+
Cover your full cost per hour (fixed + operating) plus a margin for profit and risk — commonly 15–25%. The tool's custom-hire rate is total cost × (1 + margin). Compare it to local rates: if local hire is cheaper than your cost, owning may not pay for your hours.
How can I lower my cost per hour?+
Use the machine more hours a year (spreads fixed cost), do custom work for neighbours to add hours, maintain it well to cut repairs and extend life, and right-size the machine to the job. The biggest lever is annual hours — doubling them nearly halves the fixed cost per hour.
Should I own or hire a machine?+
Compare your computed cost per hour (or per acre) against the local hire rate at your actual annual usage. Low-use machines are usually cheaper to hire; high-use machines justify ownership. Factor in timeliness too — owning means the machine is there when the weather window opens.
What about repairs and maintenance?+
Repairs rise with age and use. A common estimate is annual repairs of about 3–7% of the purchase price; this tool uses your repairs percentage spread over annual hours. Good servicing lowers it and extends life, improving both operating and fixed cost per hour.
Does this work for any implement or machine?+
Yes — tractor, combine, rotavator, power tiller, pump set or any owned machine. Enter that machine's price, life, hours, fuel and repairs. For implements with no engine, set fuel to zero and the tool still gives ownership cost per hour and per acre.