Per hour to run

[robert23239]

Well hopefully everyone is making it through the weather woes.
I was just thinking how much it cost to run a tractor per hour minus the gas.

So try to figure out the ratio for over haul, tires, tune ups and may be a break down. If I throw the cost of gas and lube out it has a whole new look.

What do you guys do for cost per hour ????

Spring is coming

Robert

 

[RoyJackson]

Frankly, as a casual residential owner, I'm not even going to worry about hourly costs...must be a boring day for the OP.

 

[ModMech]

There is no set cost structure, too much depends on how the equipment is used.

One common method is to simply use depreciation, that is take what the tractor cost new, divide by a 5,000 hour useful life and you get a $/hr number to start with. Obviously that won't cover fuel, but as long as your residual value is greater than your maintenace costs, which it almost certainly would be, you will recover your asset costs completely.

For a $45,000 tractor with a useful life of 5,000 hours, that works out to $9.00/hour in depreciation. In most cases you will spend at LEAST $9.00/hr in fuel and maybe double that!

Back in MN, most people who operate "Bobcats" for snow removal plan on a 1 or 2 year equipment pay-back, so operating costs are in the $70-$100/hour range inclusive (depreciation, labor, fuel and Ins.).

 

[Diamondpilot]

I worked 15 hours doing snow removal this past week on top of my drive and both neighbors which I do for free. I run a 28 HP Jinma with a 7.5' Meyer Plow and a 7' Woods rear grader blade.

These pictures were from the first snow of the year, about 5". We got over 24" this past week.

I charge $60 a hour or $1 a minute.

Chris

 

[robert23239]

Diamondpilot love your boat but you could use some green on your tractor.

Thanks for the answer

R

 

[kebo]

Frankly, as a casual residential owner, I'm not even going to worry about hourly costs...must be a boring day for the OP.

My thoughts too Roy. If you really start thinking about how much it costs to buy a tractor, maintain it, and repair it, you would probably start thinking about selling it. People who buy tractors buy them for a variety of reasons, but *most* people don't buy them to make a living off of operating it. If you did, then you would be smart to keep track of the owning/operating expenses.

Even if you were to keep close track of the costs, they would be different for everyone due to different purchase prices, number of hours of use, differences in maintainance & repair costs, different depreciation rates, additions and improvements to the tractor, prices of implements, etc. etc.

Another way to look at it is this>> How much would it cost you to hire someone to come in and do the same work with their tractor (that you are doing with your tractor)? Probably a significantly higher hourly amount (as diamondpilot eluded to). So, I look at using my tractor as a way of me saving money!!

 

[Ken]

When the hourly cost of the tractor excceds the cost of having some one comes in to do the work.
Had. A L3600 GST. and when the person doing the book keeping came and said that parts expenses exceded $50.00 for each hour of use. not counting the fuel or oil & filters.
Engine rebuild. Rebuild the 4 whl. drive front end. power steering failing. it was in the repair shop more than working. Purchased another brand.
Tractor sat on side of road awaiting for some one to purchase. No one looked except a elderly man needing front end loader for use around his 2 acre property. Except didn't have the money to purchase. Loaded the tractor took to his place showed him how to use and returned home. Have been called 2 times to show how to repair so could get started again.
It is now parked and hasn't moved for several weeks. There is a guess will not start.
Should I go and retreive it or let it sit.
kenj

 

[Egon]

In industry commercial units may have a very close cost tracking system in place. This will be especially true of equipment that sees lots of usage.

For the private individual putting very few hours on in one year the cost's can be recorded but due to the time period involved and inflation they may not mean much after 15 years.

 

[20 20]

I charge $60 a hour or $1 a minute.

Chris

Hey Diamondpilot, could you come up here and work your tractor for about 2 min? I'll even throw in a beer along with the $2.00



Robert23239, What are you actually trying to figure? Is it worth it to own a tractor? Or how much to charge others for your work with the tractor?

Hourly worth would have to be divided as to how much one pays, how many yrs they'll have it, plus any maintenance cost. Then you'll have to figure how much it would be to hire out and compare. For me and my machinery, it was cheaper to buy, plus I'll have resale when done{if I ever sell }. I don't really count my time{I have and it still worked out better}, because I enjoy doing my own stuff.

 

[Gizmo2]

If I needed to figure the hourly cost to run my tractor I would also have to stop and think if I really needed the tractor in the first place. Just sayin!
However, bought my 1988 JD 650 for $14,500.00, new. Traded it in on my 2320 in 2008 and got $10,500.00. That is approximately $200.00 per year to own with absolutely no major repairs.

BTW, I am talking personal use not business related.