Enter the total purchase price ($), the eventual salvage value ($), and the useful life span (hrs) into the Machinery Cost Per Hour Calculator. The calculator will evaluate and display the Machinery Cost Per Hour.

## Machinery Cost Per Hour Formula

The following formula is used to calculate the Machinery Cost Per Hour.

MC = (P - SV) / LS
• Where MC is the Machinery Cost Per Hour ($/hr) • P is the total purchase price ($)
• SV is the eventual salvage value ($) • LS is the useful life span (hrs) To calculate the machinery cost per hour, subtract the eventual salvage value from the purchase price, then multiply by the useful life span. ## How to Calculate Machinery Cost Per Hour? The following example problems outline how to calculate Machinery Cost Per Hour. Example Problem #1 1. First, determine the total purchase price ($). The total purchase price ($) is given as 4,000 . 2. Next, determine the eventual salvage value ($). The eventual salvage value ($) is calculated as 1,000 . 3. Next, determine the useful life span (hrs). The useful life span (hrs) is found to be 1500. 4. Finally, calculate the Machinery Cost Per Hour using the formula above: MC = (P – SV) / LS Inserting the values from above yields: MC = (4000 – 1000) / 1500 = 2.00 ($/hr)

Example Problem #2

The variables needed for this problem are provided below:

total purchase price ($) = 60,000 eventual salvage value ($) = 10,000

useful life span (hrs) = 2000

Entering these values and solving gives:

MC = (P – SV) / LS = 25.00 (\$/hr)