Formula used
Planned hours = shift hours × shifts/day × working days.
Running hours = planned hours × utilization.
Productive hours = running hours × efficiency.
Fixed cost per productive hour = (total fixed costs for the period) ÷ (productive hours).
Variable cost per productive hour = (variable cost per running hour) ÷ (efficiency). This converts “running-time” costs to a productive-hour basis.
Machine hour rate (productive) = fixed cost per productive hour + variable cost per productive hour.
How to use
- Pick a period type (monthly or annual) and set working time inputs.
- Enter utilization and efficiency based on your shop data.
- Add asset costs, fixed overheads, and running costs (power, labor, consumables).
- Press Calculate to view rates above the form.
- Use “productive-hour” rate for standard times; “running-hour” for runtime quotes.
- Download CSV or PDF for sharing and documentation.
Example data table
| Input | Example value | Notes |
|---|---|---|
| Period type | Monthly | 12 periods/year |
| Planned hours | 8 × 1 × 22 = 176 | Shift × shifts/day × days |
| Utilization | 75% | Machine runs 132 hours |
| Efficiency | 85% | Productive hours 112.2 |
| Purchase price | 50,000 | With 6-year life |
| Fixed overheads | 1,700 | Maintenance + rent + others |
| Power per hour | 12 kW × 70% × 0.18 | = 1.512 per running hour |
| Operator loaded | 8.50 × (1 + 20%) | = 10.20 per running hour |
Tip: Use real bills and timesheets to keep the rate audit-ready.