Farm Machinery Cost Calculator
Estimate annual equipment cost from purchase and salvage value, useful life, annual interest, fixed ownership expenses, fuel, repairs and labor. Compare cost per hour and cost per area covered.
Farm machinery and fuel cost
Estimate annual ownership and operating cost, cost per operating hour and machinery cost per acre or hectare.
Enter your figures and select Calculate to see the result.
Formula and how it works
Annual straight-line depreciation = (purchase price − salvage value) ÷ economic life. Annual interest estimate = ((purchase price + salvage value) ÷ 2) × annual interest rate. Annual operating cost = annual hours × (fuel units/hour × fuel price/unit + repairs/hour + labor/hour). Add annual ownership costs to get total annual cost, then divide by hours and area covered.
Example
For a $100,000 machine with $20,000 salvage value and a 10-year life, straight-line depreciation is $8,000 per year. At 5% interest on the $60,000 average investment, estimated annual interest is $3,000, before operating and other ownership expenses.
The interest amount is a simple planning estimate on average purchase/salvage value; it is not a loan amortization schedule. The calculator does not determine tax depreciation, financing, resale value or the correct useful life for your operation.
Farm budget methodology
Farm enterprise budgets separate receipts and costs so a farm can compare expected production economics using its own figures. Break-even analysis relates projected costs to expected price or yield. The tools here use only values entered by the user and do not supply crop price or yield forecasts.
- Penn State Extension — Budgeting for Agricultural Decision Making
- University of Minnesota Extension — Crop Budgets
Updated: 5 October 2026. This is an estimate, not financial, tax, insurance, agronomic or market advice.
Frequently asked questions
What costs are included in farm machinery cost?
This estimator combines straight-line depreciation, an interest estimate on average investment, other annual ownership costs, and entered fuel, repair and labor costs per operating hour.
How is machinery fuel cost calculated?
Fuel cost per hour equals fuel units used per hour multiplied by price per same fuel unit. Annual fuel cost is that hourly amount multiplied by annual operating hours.
How do I calculate machinery cost per acre?
Divide total estimated annual ownership and operating cost by the area the machine covers annually in acres. The calculator also reports cost per hectare.