Work out tractor operating cost instantly with clear inputs, formula shown and shareable results.
Tractor cost per hour has a variable part that only accrues while working — diesel, lubricants at about 15% of fuel cost, and repairs — and a fixed part that accrues whether or not the tractor moves. Spreading the fixed cost over an assumed 800 working hours a year gives a full cost per hour to quote for custom hire.
Operating cost
Variable = fuel L/h x price + 15% lubricants + repairs per hour
Full cost
Cost per hour = variable + annual fixed cost / annual hours (800)
Depreciation and interest are fixed. At 400 hours a year they cost twice as much per hour as at 800, which is why under-used tractors are expensive and custom hire often beats ownership.
Lifetime repairs typically total 60-100% of the purchase price. Dividing that by expected lifetime hours gives a defensible hourly figure.