Compare equipment costs with paid usage and the extra income it can generate. Start with rental contracts, asset records and maintenance logs. Each example below uses hypothetical values you can replace.
Rental Day Price Floor
Recover asset ownership costs across realistic paid rental days.
Day price = (annual costs / paid days + daily variable cost) / (1 − margin)
Show example inputs and result
| Annual ownership and fixed costs | 12,000 |
|---|---|
| Expected paid rental days | 120 |
| Operating cost per rental day | 25 |
| Required margin | 25 % |
Result: 166.6667 per rental day.
Use paid days rather than calendar days. Enter financing, maintenance and depreciation consistently.
Open rental day price floorEquipment Investment Payback
Estimate the simple payback of an equipment purchase.
Simple payback = investment / (extra monthly contribution − extra running cost)
Show example inputs and result
| Equipment and setup cost | 15,000 |
|---|---|
| Extra monthly contribution | 2,000 |
| Extra monthly running costs | 500 |
Result: 10 months.
It only estimates recovery time under constant net benefit. It does not compare all cash flows or investment risk.
Open equipment investment paybackProfit from a Cost Reduction
Compare an operating saving with the cost of implementing it.
Net recurring improvement = spend × saving rate − implementation cost
Show example inputs and result
| Current recurring spend | 10,000 |
|---|---|
| Expected saving | 8 % |
| Monthly implementation cost | 200 |
Result: 600 per period.
Only the affected spend is reduced. Include implementation and service-quality impacts separately.
Open profit from a cost reductionUse the results in your plan
For a tool rental business, review inspection, repair, and counter staffing across the complete workflow. Use one consistent period and delivery unit: a rental booking. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
Explore all relevant tool rental calculators