Rent versus Buy Calculator

This calculator has been created by the European Rental Association to allow any stakeholder involved with construction equipment to check whether for his specific situation it would make more sense to rent or purchase a specific piece of construction equipment. Variables taken into account include acquisition cost, financing, utilisation rate, maintenance and other costs as well as resale rate.Please contact us for any comments, questions or feedback on this calculator (era@erarental.org)

This calculator will allow a contractor and/or a rental company to calculate the cost implications of renting equipment rather than buying it.

Details of the equipment required
In local currency Your data Annual cost
Market rental rate per day of the equipment
Utilization in number of days per year
Total Ownership Cost
(over lifetime)
1   Acquisition cost
2   Depreciation Term (years)
3   Resale as % of acquisition cost %
4   Depreciation cost per year
0
5   Total financed amount
6   Length of financing (years)
7   Number of payment dates
8   Financing rate %
9   Average Annual interest on financing
0
10 Transportation, preparation costs
0
TOTAL
0
Maintenance & Repairs
(in % of acquisition cost on an annual basis)
Estimated annual maintenance cost
(typically 5-10% of acquisition cost)




 %
0
TOTAL
0
Others
(Annual Basis)
 1   Inspections (to comply with regulations)
2   Insurance
3   Number of accidents/year
Excess per accident
0
4   Number of replacement days
Cost of replacement for damaged equipment
(rental rate + 20%)
0
0
TOTAL
0
General Administrative expenses in hours spent (Annual Basis)
1   Purchasing (in hours worked)
2   Maintenance & repairs
3   Insurance
4   Transport costs
5   Accounting
Total number of hours
0
6   Cost per hour
TOTAL
0
Total annual cost of owning the machine
Number of days the unit is used each year (your figure)
Your daily ownership cost
Your daily rental cost
Comparison between Renting and Buying

Although we have worked to make this calculator accurate, the European Rental association cannot be held responsible for any errors in the result provided by the rental calculator.