1. What is the Equipment Cost Per Hour?

The Equipment Cost Per Hour calculation helps determine the hourly operating cost of equipment by factoring in both the operator's salary and additional equipment-related expenses.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Salary \) — Total salary cost (USD)
• \( Hours \) — Total operating hours (hours)
• \( Equipment Adj \) — Additional equipment costs per hour (USD/hour)

Explanation: This equation calculates the hourly cost by distributing the salary over operating hours and adding any additional equipment-related costs.

3. Importance of Cost Per Hour Calculation

Details: Accurate cost per hour calculation is crucial for budgeting, project costing, and determining equipment utilization efficiency.

4. Using the Calculator

Tips: Enter salary in USD, total operating hours, and any additional equipment costs per hour. All values must be valid (salary ≥ 0, hours > 0, equipment adj ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: What should be included in the Equipment Adj?
A: Include all additional costs like maintenance, fuel, depreciation, and other operating expenses specific to the equipment.

Q2: How often should this calculation be updated?
A: Update whenever there are significant changes in salary, operating hours, or equipment costs to maintain accurate budgeting.

Q3: Should benefits be included in the salary?
A: Yes, for accurate costing, include all employment-related costs (base salary, benefits, taxes, etc.).

Q4: What if the equipment is shared between projects?
A: Allocate the cost proportionally based on usage hours for each project.

Q5: How does this differ from total cost of ownership?
A: This calculates hourly operating cost, while total cost of ownership includes all costs over the equipment's lifespan.