Calculator Information

Understanding the life cycle cost of owning and maintaining assets is important to ensure good asset management. The life cycle cost for equipment should include all costs related to owning
running equipment. It should take into account the cost of loans, operator, depreciation, servicing, major repairs, minor repairs, fuel consumption, insurance and wear items.
To assit you to estimate the life cycle cost of your equipment, iSolutions has provided this free Equipment Life Cycle Cost Calculator.

The Equipment Life Cycle Cost Calculator breaks equipment costs into four broad categories. Ownership, Maintenance, Consumables and Operator.
You should enter your own costs (or those provided by your equipment supplier) in the cells provided to calculate the life cycle owning and operating cost.

This spreadsheet can them be used to evaluate equipment purchase options, or assist you to calculate the budget cost for using your equipment.

Parameters
Purchase Price:
Equipment Life in Hours:
Residual Value (%):
Interest Rate (%):
Annual Usage:
Insurance %:
Annual Major Cost:
Annual Servicing Cost:
Labour to Hours Ratio:
Labour Rate per Hour:
Unassigned Cost Ratio:
Fuel Cost (Litre):
Fuel Consumption (L/hr):
Cost of Tyres / Tracks:
Life of Tyres / Tracks:
Cost of Bucket / Blade / Body: The cost to overhaul the bucket, blade or body
Life of Bucket / Blade / Body:
Purchase price of the equipment including any options, commissioning costs and transport to site
The life of the equipment in operating hours after which the equipment will be sold or scrapped
The sale or scrap value as a percentage of purchase price at the end of the equipment's life
The annual interest rateor cost of capital
The annual usage of the asset in hours
The annual insurance cost as a percentage of purchase price
The annul cost of major reqairs to the equipment
The annual cost of servicing the equipment
The number of labour hours required to maintain the equipment as a ratio to operating hours
The hourly cost of maintenance labour
The cost of unassigned or miscellaneous costs as a percentage of maintenance costs
The cost of fuel per litre
The hourly fuel consumption
The cost of tyres or tracks
The life of tyres or tracks
The number of hours between overhauls of the bucket, blade or body
Calculator Information

About iSolutions
iSolutions is an innovative asset management and maintenance software and services provider. We specialise in life cycle costing and maintenance contract management.
We have solutions for small, medium and large business.
Contact iSolutions regarding our professional asset management solutions

Disclaimer:
iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Cost Calculator Spreadsheet. In no event shall iSolutions be liable to any party for any
indirect, incidental, consequential, or special damages, including without limitation, lost revenues or profits.

www.isipl.com Copyright © 2007 iSolutions International Pty Ltd

sure good asset management. The life cycle cost for equipment should include all costs related to owning
Equipment Life Cycle Cost Calculator

Equipment Description: Generic Dump Truck Ownership Cost per Hour Total Cost per Hour
Depreciation 36.43 Ownership 53.53

Input Table Interest 13.80 Maintenance 85.69

Purchase Price 1,200,000 Insurance 3.30 Consumables 39.19

Equipment Life in Hours 28,000 Total Ownership 53.53 Operator 55.00

Residual Value (%) 15% Total Hourly Cost 233.41

Interest Rate (%) 8% Maintenance Cost per Hour

Annual Usage 4,000 Major Components 36.25 Life Cycle Cost Breakdown
Insurance % 1.10% Service and Repair 20.00

Annual Major Cost 145,000 Labour 21.00 Ownership

Maintenance
Annual Servicing Cost 80,000 Unassigned Cost 8.44
Consumables
Labour to Hours Ratio 0.35 Total Maintenance 85.69 Operator

Labour Rate per Hour 60.00

Unassigned Cost Ratio 15% Consumables

Fuel Cost (Litre) 1.00 Fuel 28.00 Maintenance Cost Breakdown
Fuel Consumption (L/hr) 28 Tyres / Tracks 8.44

Cost of Tyres / Tracks 38,000 Bucket / Blade / Body 2.75 Major Components

Service and Repair

Life of Tyres / Tracks 4,500 Total Consumables 39.19
Labour
Cost of Bucket / Blade / Body 55,000
Unassigned Cost
Life of Bucket / Blade / Body 20,000 Operator
Operator Cost per Hour 55.00 Operator 55.00

Disclaimer:

iSolutions International Pty Ltd does not warrant the cost data or calculations contained within this Equipment Life Cycle Cost Calculator Spreadsheet. In no event shall iSolutions be liable
to any party for any indirect, incidental, consequential, or special damages, including without limitation, lost revenues or profits.
www.isipl.com Copyright © 2007 iSolutions International Pty Ltd
Major Components

Service and Repair

Labour

Unassigned Cost