Waliv, Vasai East, Maharashtra +91 8669118834
Gurukrupa Enterprises
Industrial Cost Calculators

Machine Hourly Cost Calculator

Calculate the total hourly running cost of a machine, combining power, labour, maintenance and overhead.

Calculate

Result
—
Copied

About this calculator

Machine hour rate is a standard industrial costing concept — the total cost of running a machine for one hour, combining electricity, labour and an allowance for maintenance and overhead. It's the basis for quoting job work, comparing machines, and calculating per-unit production cost.

Formula

Machine Hourly Cost = (Power × Rate) + Labour/hr + Maintenance & Overhead/hr
  • Power × RateElectricity cost per hour — currency/hr
  • Labour/hrOperator wage allocated per hour — currency/hr
  • Maintenance & Overhead/hrDepreciation, spares, upkeep, allocated per hour — currency/hr

Worked Example

Given: A 10 kW machine runs at ₹8/kWh electricity, with an operator at ₹120/hr and ₹60/hr maintenance & overhead allowance.

Result: Cost/hr = (10×8) + 120 + 60 = ₹260 per hour.

How to Use

  1. Enter the machine's power draw in kW.
  2. Enter your electricity rate.
  3. Enter the operator's wage allocated per hour of machine operation.
  4. Enter an hourly allowance for maintenance, spares and overhead (often estimated as a percentage of machine value spread over its working hours).
  5. Click Calculate for total machine hourly cost.

Important Assumptions

  • Maintenance and overhead allocation is an estimate that varies by company accounting method — some businesses also include depreciation and rent allocation in this figure.
  • Assumes one operator per machine; adjust the labour figure if one operator runs multiple machines.

Common Mistakes

  • Omitting maintenance and overhead entirely and only counting electricity, which significantly understates true machine cost when quoting job work.

Frequently Asked Questions

How do I estimate the maintenance and overhead figure?

A common approach is to take annual maintenance, spares, and a share of rent/depreciation for that machine, and divide by its expected annual working hours.

Should this include machine depreciation?

Many businesses do include depreciation as part of the overhead allowance — include it if you want the hourly cost to reflect full ownership cost, not just running cost.

These calculators are provided for informational and estimation purposes. Results depend on the assumptions and input values used. Always verify critical engineering calculations against applicable standards, manufacturer specifications, site measurements, and qualified professional advice.