Machinery Cost Calculator
Enter purchase and residual values, the ownership period in years, and an annual interest rate.
A QUICK WALKTHROUGH
How to use this tool
- Enter a non-negative purchase price and residual value no greater than the purchase price.
- Enter a positive service life and annual interest rate.
- Review annual depreciation, interest, and ownership cost.
Formula and scope
Annual depreciation = (purchase price − residual value) ÷ service life. Average capital value = (purchase price + residual value) ÷ 2. Annual interest cost = average capital value × annual interest rate. Annual ownership cost = depreciation + interest.
Limitations
Running costs such as fuel, repairs, insurance, housing, and operator labour are excluded. This is an estimate from your inputs, not financial advice.
Local calculation
Values are processed in this browser.
GOOD TO KNOW
Common questions
Are running costs included?
No. The calculation covers depreciation and interest only.
Does this recommend whether to buy machinery?
No. It only calculates the annual ownership-cost components from your inputs.