Hourly Depreciation Calculator

✖Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.ⓘ Book Value [C_bv]			+10% -10%
✖Life Span (in Hours) refers to the usage period or total life of a machine.ⓘ Life Span [L_s]			+10% -10%

✖Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.ⓘ Hourly Depreciation [D_h]

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Hourly Depreciation Solution

STEP 0: Pre-Calculation Summary

Formula Used

Hourly Depreciation = 0.9*Book Value/Life Span
D_h = 0.9*C_bv/L_s
This formula uses 3 Variables

Variables Used

Hourly Depreciation - Hourly Depreciation is the depreciation value of new machines chargeable to the work on an hourly basis.
Book Value - Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge.
Life Span - (Measured in Hour) - Life Span (in Hours) refers to the usage period or total life of a machine.

STEP 1: Convert Input(s) to Base Unit

Book Value: 4000.01 --> No Conversion Required
Life Span: 180 Hour --> 180 Hour No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

D_h = 0.9*C_bv/L_s --> 0.9*4000.01/180

Evaluating ... ...

D_h = 20.00005

STEP 3: Convert Result to Output's Unit

20.00005 --> No Conversion Required

FINAL ANSWER

20.00005 <-- Hourly Depreciation

(Calculation completed in 00.020 seconds)

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Credits

Created by Chandana P Dev

NSS College of Engineering (NSSCE), Palakkad

Chandana P Dev has created this Calculator and 500+ more calculators!

Verified by Mithila Muthamma PA

Coorg Institute of Technology (CIT), Coorg

Mithila Muthamma PA has verified this Calculator and 700+ more calculators!

< Management of Construction Equipment Calculators

Average Investment when Salvage value is 0

LaTeX Go Average Investment = ((1+Useful Life)/(2*Useful Life))*Capital Cost

Book Value for New Machine

LaTeX Go Book Value = (Hourly Depreciation*Life Span)/0.9

Life Span of Machine

LaTeX Go Life Span = 0.9*Book Value/Hourly Depreciation

Hourly Depreciation

LaTeX Go Hourly Depreciation = 0.9*Book Value/Life Span

Hourly Depreciation Formula

LaTeX Go

Hourly Depreciation = 0.9*Book Value/Life Span
D_h = 0.9*C_bv/L_s

What are the factors affecting the Cost of Owning and Operating the Construction Equipment?

The different major costs contributing to the cost of owning and operating construction equipment are as follows:
1. Depreciation Cost
2. Investment Cost
3. Maintenance and Repair Cost
4. Operation Costs
a. Repair charges
b. Depreciation on tyres and tubes
c. Labour charges
d. Fuel charges
e. Operation and maintenance crew charges
f. Miscellaneous supplies
5. Downtime Cost
6. Obsolescence Cost
7. Replacement Cost

What is Depreciation Cost?

Depreciation is defined as the declining value of a machine due to its age, use and obsolescence. After years of working, the machine will be worn-out and the value becomes scrap value which is 10%less than the book value. This will require a replacement and for that a fund will be built-up, which is termed as depreciation.

How to Calculate Hourly Depreciation?

Hourly Depreciation calculator uses Hourly Depreciation = 0.9*Book Value/Life Span to calculate the Hourly Depreciation, The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis. Hourly Depreciation is denoted by D_h symbol.

How to calculate Hourly Depreciation using this online calculator? To use this online calculator for Hourly Depreciation, enter Book Value (C_bv) & Life Span (L_s) and hit the calculate button. Here is how the Hourly Depreciation calculation can be explained with given input values -> 20.00005 = 0.9*4000.01/648000.

FAQ

What is Hourly Depreciation?

The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis and is represented as D_h = 0.9*C_bv/L_s or Hourly Depreciation = 0.9*Book Value/Life Span. Book Value refers to the value of machine which includes cost of equipment, taxes, insurance and carriage charge & Life Span (in Hours) refers to the usage period or total life of a machine.

How to calculate Hourly Depreciation?

The Hourly Depreciation formula is defined as the depreciation cost in respect of new machines chargeable to the work on an hourly basis is calculated using Hourly Depreciation = 0.9*Book Value/Life Span. To calculate Hourly Depreciation, you need Book Value (C_bv) & Life Span (L_s). With our tool, you need to enter the respective value for Book Value & Life Span and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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