Tool Depreciation Calculator
Know what your tools actually cost over time. Convert tool price into a real per-hour (or per-project) cost so you can price jobs accurately and replace equipment before it becomes a surprise.
- Enter tool price, lifespan, and resale value (if any).
- Choose your usage model: per-hour or per-project.
- Estimate monthly/annual usage realistically.
- Use the output as a line item in quotes and pricing.
Tool Depreciation (Pro)
Accurate job-costing: depreciation with salvage value, utilization, and real-world maintenance + consumables.
- Enter a lifespan (hours) greater than 0 for usage-based depreciation.
How to use
- Enter tool purchase price and expected lifespan.
- Add resale value (0 if you run tools into the ground).
- Estimate total hours used per year (or per month).
- Use the result as a “tool cost” line in project pricing.
Pro tips
- • Track “real hours” on your most used tools (router, sander, laser, CNC spindle) and update quarterly.
- • Include consumables separately (bits, blades, abrasives) so depreciation stays clean.
- • If a tool is “project specific,” allocate depreciation per project, not per hour.
FAQs
What if I barely use a tool?
Then your cost per hour goes up. Low-utilization tools should usually be priced per-project, or treated as overhead if they support the shop generally.
Depreciation vs consumables: what’s the difference?
Depreciation is the tool’s value wearing out over time. Consumables are things you replace regularly (bits, blades, sandpaper). Track them separately for clearer pricing.
Should I include maintenance?
Yes, if it’s meaningful. You can add average annual maintenance to the tool’s “cost basis” so the per-hour number reflects reality.