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Cost and staffing decisions / contractor calculators

Equipment Ownership vs. Rental Calculator

Compare annual equipment ownership and rental costs at your expected utilization, including depreciation, capital cost, maintenance, and operating expenses.

01 / Inputs

Use your own numbers

Example values or your current session inputs are loaded. Replace them with your own figures. Every field is required; enter 0 where it applies and is allowed.

Greater than 0.
Minimum 0.
Greater than 0.
Applied to average capital tied up, not an additional loan repayment. Do not count interest twice. Minimum 0, maximum 100.
Minimum 0.
Do not also include the same maintenance in daily operating costs. Minimum 0.
Minimum 0.
Minimum 0.
Fuel and other operating expenses not included in the rental rate. Minimum 0.
Minimum 0.
Greater than 0, maximum 366.

02 / Result

Side-by-side comparison

Costs match at 57.33 operating days/year. Ownership is lower cost above that usage; rental is lower below it.

Ownership is lower cost by

$12,800.00

USD per year at the entered operating days

Own equipment

Lower cost

Total modeled cost (USD)

$24,200.00

Annualized economic cost, not upfront cash required

Rent equipment

Total modeled cost (USD)

$37,000.00

Annual rental and operating cost, including entered fees

Annual straight-line depreciation
$8,000.00
Annual capital / opportunity cost
$3,200.00
Annual fixed ownership cost
$18,200.00
Ownership cost per operating day
$242.00
Rental cost per operating day
$370.00
Upfront purchase cash (not annual expense)
$60,000.00
Utilization break-even (operating days/year)
57.33

Calculate your current inputs to enable printing. Free internal job record, kept local. No document purchase required. Does not fill an Etsy template.

How the math works

Annual depreciation = (purchase − resale) ÷ life. Capital cost = (purchase + resale) ÷ 2 × capital rate. Annual ownership = depreciation + capital cost + fixed expenses + maintenance + daily operating cost × use days. Annual rental = (rental rate + rental operating cost) × use days + annual rental fees.

Assumptions

An annualized economic comparison, not a cash-flow, tax-depreciation, or financing schedule. The upfront purchase is shown separately and is not added again to annual depreciation. Assumes comparable equipment, constant annual fees and rates, and no rental minimums or availability limits.

Planning estimate only, calculated locally in your browser. Verify costs, tax treatment, labor rules, and availability with your accountant and actual records before deciding.

Contractor field notes

Compare owning and renting at the same annual utilization

Equipment decisions depend on use, not purchase price alone. This calculator annualizes the purchase less expected resale value, includes the cost of tied-up capital, and compares ownership expenses with rental charges for the same operating days. It separately identifies upfront purchase cash.

Annualized ownership versus annual rental expense

Ownership = (purchase − resale) ÷ life + average invested capital × annual capital rate + annual fixed expenses + maintenance + daily operating expense × operating days. Rental = (daily rental rate + rental operating expense) × operating days + annual rental fees.

Worked example

A $60,000 machine with a $20,000 resale value after five years has $8,000 annual depreciation. An 8% capital rate on average invested capital of $40,000 adds $3,200. With $4,000 fixed expenses, $3,000 maintenance, and $60/day operating cost for 100 days, annual ownership is $24,200. Rental at $300/day plus $60/day operation and $1,000 annual fees costs $37,000. Ownership is $12,800 lower annually. Under these fixed-fee assumptions, costs cross at 57.33 operating days/year.

Common estimating pitfalls

  • Do not add the full purchase price to annual depreciation again.
  • Use comparable equipment and consistent fuel, insurance, delivery, and maintenance inclusions.
  • A favorable annual cost does not establish that purchase cash or financing is available.

Frequently asked questions

Does this model loan payments or tax depreciation?

No. It uses straight-line economic depreciation and an annual capital-cost assumption. It is not a loan amortization, tax deduction, or cash-flow schedule.

Is owning always cheaper above the break-even days?

Not necessarily. The tool states which side is cheaper above or below a positive crossover. If ownership has higher variable cost, the direction reverses. Some assumptions have no positive utilization crossover.

What about weekly rental discounts or minimums?

Convert the applicable rental agreement into a representative daily rate and total annual fees. The model does not automatically apply minimum rental terms, changing delivery counts, or tiered discounts.