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Machine-Hour / TCO Calculator

Break down equipment cost per hour into ownership (depreciation, interest, insurance) and operating (fuel, teeth, maintenance). See your true cost of ownership and use it to set competitive rates.

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The math, shown transparently

No black box. Here is exactly what the calculator computes. (Source: Caterpillar Performance Handbook for fuel and maintenance factors, Fecon/Rayco for teeth consumption)

// Ownership (fixed, whether you run it or not)

depreciation_per_hr = purchase_price / useful_life_hours

interest_per_hr = (financed_amount x rate x years) / useful_life_hours

insurance_per_hr = annual_insurance / annual_hours

// Operating (scales with hours run)

maintenance_per_hr = (purchase_price x maintenance_%) / annual_hours

fuel_per_hr = burn_rate_gal x fuel_cost_per_gal

teeth_per_hr = teeth_consumed_per_hr x cost_per_tooth

// Total

total_per_hour = ownership + operating

Worked example

$85,000 skid steer with mulcher, 4,000 hr useful life, 6 gal/hr, $3.50/gal, 3 teeth/hr at $22, 7% annual maintenance:

depreciation = $85,000 / 4,000 hrs = $21.25/hr

maintenance = $85,000 x 7% / 500 hrs = $11.90/hr

fuel = 6 gal x $3.50 = $21.00/hr

teeth = 3 x $22 = $66.00/hr

total = $21.25 + $11.90 + $21.00 + $66.00 = $120.15/hr

daily (8 hrs) = $961.20

annual (500 hrs) = $60,075

Ownership cost vs operating cost

Ownership cost (depreciation, interest, insurance) hits you whether the machine runs or sits. Operating cost (fuel, teeth, maintenance) only counts when the machine is working. Understanding the split changes how you think about pricing.

A cheap machine with high operating costs can be more expensive per hour than an expensive machine that is efficient. The key number is cost per billable hour. If you bill 100 hours a month, an $85,000 machine costs $21.25/hr in depreciation. Bill 50 hours and it costs $42.50/hr. Utilization is everything.

Teeth dominate operating cost for mulching equipment. At $66/hr in the example above, teeth alone are 55% of the total hourly cost. An operator who does not track teeth consumption will consistently underbid. Track your teeth per hour on every job and adjust your rates when the number changes.

Frequently asked questions

How much does a forestry mulcher cost to operate per hour?

A typical forestry mulcher costs $80-$200 per hour to operate when you include all costs: depreciation ($15-$45/hr), fuel ($20-$32/hr at 5-8 gal/hr), teeth/consumables ($45-$120/hr at 3-4 teeth/hr), maintenance ($5-$15/hr), and insurance ($3-$5/hr). The biggest variable is teeth consumption, which depends heavily on rock content and vegetation hardness.

How many hours does a mulcher head last?

A forestry mulcher head typically lasts 2,000-4,000 hours before needing major rebuild or replacement. The carrier machine (excavator, skid steer, or dedicated mulcher) has a longer life of 5,000-10,000 hours. Individual carbide teeth are the primary consumable, lasting 2-6 hours each depending on conditions. A mulcher head with 30-40 teeth at $15-$30 each represents $450-$1,200 in teeth per full replacement set.

Should I buy or lease a forestry mulcher?

It depends on utilization. If you will run the machine 1,000+ hours per year, buying typically gives a lower hourly cost due to equity buildup and lower total interest. If you are running less than 800 hours per year or are testing a new market, leasing preserves cash and shifts maintenance risk. The TCO calculator helps you model both scenarios by adjusting purchase price, down payment, and useful life.

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