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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:

Purchase price of the equipment including any options, commissioning costs and transport to site

Equipment Life in Hours:

The life of the equipment in operating hours after which the equipment will be sold or scrapped

Residual Value (%):

The sale or scrap value as a percentage of purchase price at the end of the equipment's life

Interest Rate (%):

The annual interest rateor cost of capital

Annual Usage:

The annual usage of the asset in hours

Insurance %:

The annual insurance cost as a percentage of purchase price

Annual Major Cost:

The annul cost of major reqairs to the equipment

Annual Servicing Cost:

The annual cost of servicing the equipment

Labour to Hours Ratio:

The number of labour hours required to maintain the equipment as a ratio to operating hours

Labour Rate per Hour:

The hourly cost of maintenance labour

Unassigned Cost Ratio:

The cost of unassigned or miscellaneous costs as a percentage of maintenance costs

Fuel Cost (Litre):

The cost of fuel per litre

Fuel Consumption (L/hr):

The hourly fuel consumption

Cost of Tyres / Tracks:

The cost of tyres or tracks

Life of Tyres / Tracks:

The life of tyres or tracks

Cost of Bucket / Blade / Body: The cost to overhaul the bucket, blade or body
Life of Bucket / Blade / Body:

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:

Ownership Cost per Hour

Generic Dump Truck

Input Table

Total Cost per Hour

Depreciation

36.43

Ownership

53.53

Interest

13.80

Maintenance

85.69

3.30

Consumables

39.19

Operator

55.00

Purchase Price

1,200,000

Insurance

Equipment Life in Hours

28,000

Residual Value (%)

15%

Interest Rate (%)

8%

Annual Usage

4,000

Major Components

36.25

Insurance %

1.10%

Service and Repair

20.00

Annual Major Cost

145,000

Labour

21.00

Annual Servicing Cost

80,000

Labour to Hours Ratio

0.35

Labour Rate per Hour

60.00

Unassigned Cost Ratio

15%

Consumables

Fuel Cost (Litre)

1.00

Fuel

Fuel Consumption (L/hr)

28

Cost of Tyres / Tracks

Total Ownership

53.53

Total Hourly Cost

233.41

Maintenance Cost per Hour

Unassigned Cost
Total Maintenance

8.44
85.69

28.00

Tyres / Tracks

8.44

38,000

Bucket / Blade / Body

2.75

Life of Tyres / Tracks

4,500

Total Consumables

39.19

Cost of Bucket / Blade / Body

55,000

Life of Bucket / Blade / Body

20,000

Operator Cost per Hour

55.00

Operator
Operator

Life Cycle Cost Breakdown

Owners hip
Maintenanc
e
Cons umabl
es

Maintenance Cost Breakdown

Major
Components
S ervice and
Repair
Labour
Unas s igned
Cos t

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
S ervice and
Repair
Labour
Unas s igned
Cos t