Charter Hire Cost Calculator

Work out charter hire cost instantly with clear inputs, formula shown and shareable results.

About Charter Hire Cost Calculator

Time charter hire accrues per day on hire. Off-hire periods — breakdown, deviation for owner's purposes, drydocking — are deducted, and address commission plus brokerage is taken off the gross, so the charterer's net payment is hire on on-hire days less commission.

Formula

Charter hire

Net hire = daily rate x (days - off-hire) x (1 - commission%)

Worked example

With the default values below, Charter Hire Cost Calculator returns Net hire payable of $721,153.13. Change any input above and every figure here is recalculated in your browser.

Inputs used

Daily hire rate: 18,500
Charter duration: 42 days
Address and brokerage commission: 3.75 %
Off-hire days: 1.5 days

Results

Net hire payable: $721,153.13
Gross hire for on-hire days: $749,250.00
Commission deducted: $28,096.88
Off-hire credit: $27,750.00

Step by step

1Values used
2Charter hire
3Net hire payable= 721,153.13
4Gross hire for on-hire days= 749,250.00
5Commission deducted= 28,096.88
6Off-hire credit= 27,750.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Marine results are planning estimates only. Verify against the vessel's approved stability booklet, loading manual, class society rules and applicable maritime regulations before loading or sailing.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Marine results are planning estimates only. Verify against the vessel's approved stability booklet, loading manual, class society rules and applicable maritime regulations before loading or sailing.

Frequently Asked Questions

What puts a ship off hire?

Typically breakdown, insufficient speed or consumption performance, deficiency of crew, or deviation for the owner's benefit, as defined by the charter party clause.

Who pays fuel on a time charter?

The charterer buys and pays for bunkers, while the owner pays crew, maintenance and insurance — which is why the fuel clause and speed warranty matter so much.