The Machine Cost Worksheet helps you determine the true cost per hour to run a machine by combining several operational and ownership expenses. Rather than focusing only on basic operating cost, the worksheet brings together factors such as lease or replacement value, maintenance, and actual usage patterns. By entering these details, the worksheet calculates an accurate hourly rate that supports more informed pricing decisions and ensures your machine-related costs are fully represented in your workflow.
Table of Contents
Accessing the Machine Cost Worksheet
Navigate to Settings / Components / Machines and select the appropriate Machine from the list.
1. With the machine open, ensure the Machine Details tab is selected.
2. In the Accounting section, locate the Machine Cost Per Hour field and click the button or link next to it (e.g., the calculator or Calculate Cost Per Hour control) to open the Machine Cost Worksheet.
Using the Machine Cost Worksheet
The worksheet opens in a dialog titled Calculate Machine Cost per Hour. Fill in the information for the machine.
a. Monthly Lease Payment – The monthly fee to operate and rent this machine.
Note: If you do not have a monthly payment, estimate a monthly rental amount or a monthly replacement cost.
b. Monthly Maintenance Cost – Your estimated monthly maintenance contract, repairs, and parts to maintain this machine.
c. Average Daily Operating Hours – The average number of hours per day the machine is in operation, not simply when it is available.
d. Days per Week Your Shop is Open – The number of days per week your shop is open.
e. Work Days per Year Your Shop is Closed – The number of days per year the shop is closed, such as holidays and scheduled closures.
f. Based on the information entered, the worksheet calculates a New Average Machine Cost (shown as cost per hour, excluding labor) and displays it in the dialog.
3. Click Apply and Close to save the calculated Machine Cost per Hour to the machine record and close the worksheet. The Machine Cost Per Hour field on the machine details page is updated with the new value.
Note: It is best to review your machine costs per hour periodically as your business costs change.