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    Farm Machinery Cost Calculator

    An 8 lakh tractor used 1000 hours a year for 10 years, burning 6 L/h of diesel at 90 per litre, costs 901.8 per hour to run.

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    Total operating cost =

    901.8 per hour

    Fixed cost per year
    140800
    Fixed cost per hour
    140.8
    Variable cost per hour
    761
    Depreciation per year (straight line)
    72000
    Interest on average investment per year
    52800
    Cost per hectare
    1127.25 per ha
    Step-by-step solution
    1. Depreciation = (P − S)/L = 72000; interest = (P + S)/2 × i = 52800
    2. Fixed/h = (72000 + 52800 + 16000) ÷ 1000 = 140.8
    3. Variable/h = fuel 540 + lube 81 + repair 40 + operator 100 = 761

    Farm Machinery Cost Formula

    Cost/h = (D + I + HIT)/H + fuel + lube + repair + labour

    D = (P − S)/L, I = (P + S)/2 × i

    Worked Example

    A tractor costing 8 lakh used 1000 h a year for 10 years:

    1. Depreciation = (P − S)/L = 72000; interest = (P + S)/2 × i = 52800
    2. Fixed/h = (72000 + 52800 + 16000) ÷ 1000 = 140.8
    3. Variable/h = fuel 540 + lube 81 + repair 40 + operator 100 = 761

    Fixed cost per hour: 140.8 · Variable cost per hour: 761 · Depreciation per year (straight line): 72000 · Interest on average investment per year: 52800 · Cost per hectare: 1127.25 per ha

    GATE tip

    GATE usually gives every rate; compute fixed cost per year first, divide by hours, then add the variable costs.

    More Farm Machinery and Power Calculators

    Frequently asked questions

    Why is interest charged on the average investment?

    The money tied up falls from P to S over the life, so (P + S)/2 is the average amount on which interest is lost.

    How does annual use change cost per hour?

    Fixed costs are spread over more hours, so higher use lowers the hourly cost until repairs start to rise.

    Sources

    Last reviewed: . Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.

    Cite this page

    APA

    Scientific Converters. (2026, October 15). Farm Machinery Cost Calculator. Retrieved October 29, 2026, from https://scientificconverters.com/calculators/machinery-cost-calculator/

    IEEE

    Scientific Converters, "Farm Machinery Cost Calculator," scientificconverters.com. Accessed: Oct. 29, 2026. [Online]. Available: https://scientificconverters.com/calculators/machinery-cost-calculator/

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