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How to calculate the cost per/hr on your equiptment?


Starting a lawn care business.

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Old 11-07-2008, 11:41 AM
mhoward92 mhoward92 is offline
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Default How to calculate the cost per/hr on your equiptment?

I'm wondering if any of you have a good way to calculate how much it costs you to run your mower,blower,etc (any gas powered equiptment) that way you can calculate how much your actually making on the job. Post any tips you may have.

so basically....do any of you have tips for finding the cost per/hr on your equiptment?
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Old 11-07-2008, 12:22 PM
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May be many diffrent ways to figure it out, and many might not agree with my method, but it works for me and if there is a better way, then i am all ears. Anyhow what i do is this:

1st/ Figure out how many hours each pc of equipment will run per tank of fuel,your total hours times your average fuel cost = run time cost

2nd/ figure out your maintance cost for each pc of equipment (i do this based on a weeks worth of work) blades, line, oil x 1.25 x total used = total maint. cost for the week

ad these 2 figures then divide by total run hours and you have your cost per hour. then add in your man hours cost, this is what it cost you per week to run.
Now add the income of all your accounts for the week, divide this # by the total # of hours run and the diffrence is your profit or lost.
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Old 11-07-2008, 12:30 PM
mhoward92 mhoward92 is offline
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yup, that makes perfect sense. I will copy and paste that to print.


Thanks VPS

Anyone else want to share their methods?
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Old 11-08-2008, 05:39 AM
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How important is it for you to include the cost of the piece of equipment itself? Say for instance the blower costs $300 and it has a lifespan of 3 years before it needs to be replaced?

Should you be concerned with this?
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Old 11-08-2008, 07:01 AM
mhoward92 mhoward92 is offline
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Quote:
Originally Posted by Steve View Post
How important is it for you to include the cost of the piece of equipment itself? Say for instance the blower costs $300 and it has a lifespan of 3 years before it needs to be replaced?

Should you be concerned with this?
Yes that does make sense too. I think all of that should be considered when calculating these things.

Good point steve
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