How to calculate equipment rental rates
The full method, from the seven costs of ownership to the day, week and month rate you publish. With a 3-tonne mini excavator worked through end to end.
Read it → Guide 2 · 8 min readHow much should you charge to rent out equipment?
The floor is arithmetic, the price is the market, and the money is usually in the charges around the machine. Including the rate ladder and when discounting is worth it.
Read it → Guide 3 · 8 min readWill this machine pay for itself? Payback explained
The month your cumulative cash turns positive, why it matters more than ROI, and the worked telehandler that pays back in month 24 — or never, at fifteen points less utilisation.
Read it → Guide 4 · 8 min readBuy it or hire it in? The numbers that decide
Ownership is fixed cost, hiring in is variable cost, and the crossover is one division. Plus the asymmetry that means you should never buy at the crossover.
Read it → Guide 5 · 8 min readTime utilisation vs financial utilisation, and why busy machines lose money
Two identical excavators, same yard, same year. One was on hire 54 days more and earned $1,905 less. Which number your depot manager is measured on decides which one you get.
Read it → Guide 6 · 8 min readWhat your machine is worth in year three, and why it changes the rate
Book depreciation is for tax. Market residuals set your rate. Decline curves by machine family, what an eighteen-point error costs, and how to build your own curve in an afternoon.
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