How to use this calculator
Break-even is the annual usage where ownership and rental costs are equal. Spread fixed ownership costs over your holding period. If rental hourly cost is no greater than ownership variable cost, increasing use cannot recover positive fixed ownership costs.
The formula
Break-even hours = max(0, (annual fixed ownership cost − annual rental fees) / (rental rate × (1 + rental tax) − energy − maintenance)). A nonpositive denominator has no finite threshold under this model.
Financing: purchase tax is financed after the down payment. Interest is summed on the declining balance for the shorter of loan term and holding period. Outstanding principal is a liability at resale; principal is not counted again because acquisition is already included. No opportunity cost or present-value discounting is modeled.
What to keep in mind
A threshold above 8,760 hours per year is unattainable for one machine. Allow for downtime.
Use consistent nominal USD values. Taxes default to zero because rates and exemptions vary. Supply applicable sales and property taxes from your jurisdiction. Income tax deductions and credits are excluded. Rental energy and maintenance are assumed included in the entered rental rate; add any renter-paid costs to that rate.