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Equipment Cost Calculator
Equipment is a prepaid expense. Enter the price, what you expect to recover, the years of use and the hours per month to see what it costs as you use it.
Straight-line depreciation, no financing cost. A higher resale value or a longer life lowers the monthly cost, which is why buying durable equipment can be cheaper than replacing cheap equipment.
Cost per hour is the honest comparison
A 1,200 computer used for 140 hours a month for three years costs about twenty-eight a month and twenty cents an hour before resale. That framing makes an upgrade decision clearer: if the new machine saves two hours a month at your hourly value, the math may already justify it.
Resale value matters. A device that keeps half its value after three years costs less per month than one that becomes worthless, even if the purchase price is higher.
Use the life you expect, not the warranty
Warranty length is a support commitment, not a useful life. A laptop may be supported for five years and replaced in three because the battery or the screen no longer fits the work. Use the replacement cycle you actually follow, and rerun the number when it changes.
Frequently asked questions
Should I include repairs?
Yes, if they are predictable. Add an annual repair allowance to the price or reduce the salvage value; either way, the monthly cost should include the cost of keeping the equipment running.
Does this include financing?
No. If you pay interest, add it to the depreciable amount or run a separate cost-of-credit calculation.
What if I use the equipment for personal things too?
Estimate the share of use that is work. Only the work share belongs in a business cost calculation.
Is straight-line depreciation realistic?
It is a planning approximation. Resale values often fall faster in the first year and slower afterwards; straight-line keeps the comparison simple and conservative.