Equipment depreciation calculator
How much value a machine loses each year and for each hour it works: straight-line, by the hour meter and double-declining balance, with the book value today.
Your numbers
The machineUse See your resultResult
Straight-line per year $26,667 Per hour worked $17.78$26,667 this year at 1,500 h Double-declining, first year $83,333 Book value today $196,667straight-line; $111,111 on double-declining Stop working this out by handFleetZap keeps each machine’s hour meter and every repair cost in one record, the numbers depreciation by the hour and keep-or-replace decisions start from.
See FleetZap Maintenance · Try the demoThe formula
Straight-line = (Price − End value) ÷ Years · Per hour = (Price − End value) ÷ Lifetime hours · Double-declining rate = 2 ÷ Years
With the defaults: ($250,000 − $90,000) ÷ 6 = $26,667 a year, or $160,000 ÷ 9,000 h = $17.78 an hour. These are management numbers for costing and replacement decisions; US tax depreciation follows the IRS MACRS rules in Publication 946, so ask your accountant for that.
Using the numberWhat to do with it
- Charge depreciation per hour in job costing: a machine that works more loses value faster.
- Add depreciation to operating cost to get the real cost per hour; the cost per hour calculator does both.
- When the yearly repair cost passes what the machine still loses in value, it’s time to look at replacing it.
Guides behind this calculator
Equipment lifecycle cost Heavy equipment cost per hour Rent vs buy equipmentMore free calculators
Downtime cost calculator MTBF calculator OEE calculator Equipment cost per hour calculator Equipment rental rate calculator Next PM due calculator EOQ calculator Safety stock calculator Reorder point calculatorFleetZap Maintenance
The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.
- Work orders
- Preventive maintenance
- Procedures, inspections & field app
- Parts & purchasing
- Compliance
- Assets, reports & KPIs
Good to know
How do you calculate equipment depreciation?The simplest method is straight-line: purchase price minus the value at the end, divided by the years you keep the machine. A $250,000 machine worth $90,000 after 6 years depreciates about $26,667 a year.
What is depreciation per hour?Purchase price minus end value, divided by the hours the machine will work over its life. It charges more depreciation to machines that work more, which suits job costing and rental pricing.
Is this the same as tax depreciation?No. These are management numbers for costing and replacement decisions. US tax depreciation follows the IRS MACRS rules in Publication 946; ask your accountant for those figures.
See FleetZap on your own fleet
Book a 20-minute walkthrough, or poke around the live demo company right now.
- Set up with you, on your machines
- Works fully by hand, GPS optional
- Live demo, no sign-up