**To calculate the average total cost per hour, divide the annual total cost by the number of total hours that the machine is used.**

## How to Calculate Equipment Cost Per Hour?

Calculating equipment cost per hour is an important part of any business that owns and operates machinery. Knowing the cost of each piece of equipment allows for better budgeting and cost-saving measures. By calculating the cost of equipment per hour, businesses can better plan their operations and make sure they are utilizing resources in the most efficient way.

The first step to calculating equipment cost per hour is to determine the total cost of the equipment. This includes the purchase price, any installation costs, shipping and handling expenses, and any other costs associated with acquiring the equipment. It is important to include any ongoing expenses such as maintenance and repair costs. Once the total cost of the equipment is determined, divide it by the expected lifespan of the equipment. This will give you the cost of the equipment per hour.

The next step is to determine the expected hours of use for the equipment. This can be done by factoring in the number of shifts the equipment is expected to be used, the number of hours per shift, and any other times during the year when the equipment may be idle. Make sure to include any downtime for maintenance or repairs.

To calculate the cost of the equipment per hour, divide the total cost of the equipment by the expected hours of use

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