Tool Depreciation & Job Cost Calculator
Recover tool ownership costs across productive jobs, with explicit useful life, salvage and operating costs.
Set up your calculation
An illustrative example is loaded. Replace its values with your measurements, costs or documented settings.
Calculation
Your result
- Ownership recovery per billable hour
- 0.9 USD/h
- Tool cost including operating expenses
- 1.65 USD/h
- Tool cost for this job
- $6.60
The quote handoff carries your inputs and assumptions. Only an explicit base cost is suggested as a quote cost; prices, rates and measurements remain planning notes.
How it works
Usage: (cost − salvage) ÷ operating-life hours. Straight line: (cost − salvage) ÷ years ÷ annual operating hours. Declining balance: the smaller of rate × opening book value and opening value − salvage, divided by annual hours. Divide ownership cost by billable share, then add maintenance and consumables per billable hour.
- This is a job-cost allocation, not a tax depreciation schedule. Declining balance is calculated for the selected year and never depreciates below salvage.
- Operating hours include nonbillable use; billable share spreads ownership cost over the portion charged to customers. If hours already represent billable use, set the share to 100%. Avoid including these same costs again in a machine rate.
Learn the method in the Academy
Follow the matching lesson or workshop reference before applying the result.
Use this in your project
Continue with the next measurement or cost, then keep the assumptions with your quote.
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