Equipment rental rate calculator

Two numbers rental yards need: the daily rate that covers a machine’s yearly cost at your utilization, and the overtime charge when a rental runs past its included hours.

Your numbers

Result

The formula

Break-even daily rate = Yearly cost ÷ Rental days · Overtime per hour = Period rate ÷ Included hours × Overtime factor

With the defaults: $24,000 ÷ 160 days = $150 a day to break even, and a $400 day with 8 hours included bills overtime at $400 ÷ 8 × 0.5 = $25 an hour; 11 hours run is 3 over, so $75. Both match the rental rates and rental billing guides.

What to do with it

• Utilization moves the break-even rate more than anything else: the same machine at 120 rental days instead of 160 needs a third more per day.
• Read the hour meter at checkout and return, every time; overtime you can’t prove is overtime you can’t bill.
• Check your rates against local competitors at least once a year, but never below break-even.

Guides behind this calculator

FleetZap Rentals

Reserve, check out and return equipment on a board built for rental yards.

• Rental board
• Day/week/month billing
• Invoices & QuickBooks
• Customer portal

Good to know

Divide the machine's yearly cost to own and maintain by the number of days it rents in a year. A loader that costs $24,000 a year and rents 160 days needs $150 a day to break even.

Divide the period rate by the hours included in that period to get an hourly rate, multiply by the overtime factor, then by the hours over. A $400 day with 8 hours included and a 0.5 factor bills overtime at $25 an hour.

A common convention is 8 hours a day, 40 a week and 160 a 4-week month, but it varies by company and contract. Put your own numbers in the calculator.

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