Equipment Replacement Calculator embed

Compare the estimated annual cost of keeping your current equipment against replacing it, using repairs, extra operating costs, downtime, financing, insurance, and maintenance. Optionally check whether your projected cash after purchase would stay above your reserve floor.

Current equipment assumptions

Annual repair costs ($ per year)

Enter the annual repair costs you expect if you keep the current equipment.

Extra annual operating cost ($ per year)

Enter extra annual operating costs from keeping the current equipment, such as lower efficiency, higher fuel or energy use, or added labor.

Expected annual downtime if kept (hours)

Enter the annual hours of expected downtime if you keep the current equipment.

Cash cost per hour of downtime ($ per hour)

Enter the cash cost per hour of downtime, such as lost revenue, idle labor, or missed jobs. This rate is used for downtime in both the keep and replace scenarios.

Replacement assumptions

Annual financing cost ($ per year)

Enter the annual financing or lease payment cost for the replacement equipment.

Annual insurance cost ($ per year)

Enter the annual insurance cost for the replacement equipment.

Annual maintenance cost ($ per year)

Enter the annual maintenance cost for the replacement equipment.

Expected annual downtime if replaced (hours)

Enter the annual hours of expected downtime if you replace the equipment.

Optional cash-timing check

Fill in all five fields below to see whether your projected cash after purchase would stay above your reserve floor. Leave any of them blank to skip this check.

Projected low cash balance ($)

Enter your projected lowest cash balance in the period after the purchase, before subtracting purchase-related cash outflows.

Minimum cash reserve floor ($)

Enter the minimum cash balance you want to keep on hand as a reserve.

Down payment ($)

Enter the down payment required for the replacement.

Setup or installation cost ($)

Enter one-time setup, delivery, or installation costs for the replacement.

First financing payment ($)

Enter the first financing or lease payment due at or near purchase.

Results

Enter the current equipment and replacement assumptions, then choose Calculate annual-cost comparison.