How to Calculate Your True Cost per Hour — With a Real Equipment Example

Understanding what your equipment really costs to run

Buying a telehandler, rough-terrain forklift, or aerial lift can feel like a smart move — until you start adding up what it really costs to own.

Most people only think about the purchase price, but that’s just the beginning.

The real number that matters is your cost per hour, and it includes every dollar you spend to keep that machine running.

At Xtreme Pro Services, we help business owners across North Dakota and Montana figure out their true operating costs so they can decide whether to buy, rent, or lease with confidence.

Let’s walk through it step-by-step using real numbers.

Step 1: Separate Fixed and Variable Costs

Fixed costs are the bills that come due whether the machine runs or not.

Variable costs change with the hours you put on the machine.

You need both to get an honest cost-per-hour picture.

Example: 8,000 lb Telehandler — $90,000 Used Purchase

You purchase a clean used telehandler for $90,000, plan to keep it five years, and expect to use it 400 hours per year.

Fixed Costs (Annual)

Variable Costs (Annual)

Total Ownership Cost per Year

$6,600 (Fixed) + $20,400 (Variable) = $27,000 per year

If you run that telehandler 400 hours per year, your true operating cost is:

$27,000400=$67.50/hour\frac{\$27,000}{400} = \$67.50 / hour400$27,000​=$67.50/hour

That means every hour costs about $67.50, before labor or jobsite overhead.

Use it only 200 hours, and the cost doubles to roughly $135/hour.

Step 2: Compare It to Renting

Now plug in real usage:

• Telehandler: 3 months × $3,364 = $10,092 per year
• Boom Lift: 2 months × $2,853 = $5,706 per year
• Scissor Lift: 4 months × $554 = $2,216 per year

Total rental cost: ≈ $18,014 per year

That’s access to all three machines — telehandler, boom lift, and scissor lift — for less than owning just one telehandler.

You don’t pay for storage, insurance, maintenance, or depreciation.

Many companies also offer low-hour rental programs, discounting well-maintained higher-hour machines for occasional users.

At those rates, it’s almost impossible to own, maintain, and insure equipment for less than what it rents for.

Step 3: Adjust for Your Usage

If you’re running 800–1,000 hours a year, ownership may start to make sense.

But for seasonal or light use, renting or leasing nearly always wins once all costs are included.

Rule of thumb:

• Under 300 hrs/year: Rent or lease — ownership rarely pays off.
• 300–700 hrs/year: Compare both ways.
• 700 + hrs/year: Ownership can work if maintenance and depreciation are managed well.

Step 4: Plan for Maintenance and Depreciation Early

Depreciation is your silent expense.

Every start-up drops value, even when nothing fails.

Add required break-in maintenance, filters, and wear items, and first-year costs jump quickly.



Scheduling preventive service and oil analysis through Xtreme Pro Services can lower variable costs and extend machine life.

Example Summary

A $90,000 telehandler used 400 hours per year = $67.50/hr cost

 Same machine rented ≈ $20–25/hr effective rate

That’s why knowing your true numbers matters before buying.

Download the Free XPS Cost-Per-Hour Calculator

After reading this, you might be wondering: “Can I just plug in my own numbers?”

 Now you can.

We’ve built an easy-to-use Excel calculator that does all the math for you.

Just enter your equipment type, purchase price, resale estimate, and annual usage hours — and it instantly calculates:

• Total fixed and variable ownership costs
• Depreciation per year
• True cost per operating hour
• Rental cost comparisons
• Breakeven utilization hours

The calculator uses the same formulas and logic from this article, pre-filled with real-world examples like an 8,000 lb telehandler, 40’ boom lift, and 19’ electric scissor lift.

 All blue fields are editable, and the green cells auto-calculate — no spreadsheet knowledge required.

Download the XPS Cost-Per-Hour Calculator (Excel)

Use it to see whether it makes more sense to own or rent, and share it with your team or accountant for smarter budgeting.

Real-World Advice from Xtreme Pro Services

We service and inspect hundreds of machines — telehandlers, aerial lifts, scissor lifts, and rough-terrain forklifts — across the Bakken oilfield, rail yards, and industrial operations throughout North Dakota and Montana.

We’ve seen owners make and lose thousands depending on one thing: understanding their real cost per hour.

• Before you buy, call us — we’ll help you:
• Evaluate total ownership vs rental costs.
• Review expected maintenance and service intervals.
• Compare buying vs low-hour rental programs.
• Protect your warranty and extend machine life.

Know Your Numbers Before You Buy

701-987-9877

xtremepro.services

Serving Williston, Tioga, Watford City, Sidney, Minot & surrounding areas



Xtreme Pro Services — North Dakota’s trusted name for aerial lift, telehandler, and rough-terrain forklift repair, diagnostics, and service.