Rate this post

Should I buy this cost per use calculator

Deciding if you should buy something expensive? Looking at JUST the price doesn’t make sense. Sometimes it’s helpful to review the Cost-Per-Hour. Enter the cost and usage here:

Hours used per day:

New Phone $800  |  MacBook Pro $1,800  |  Porsche 911 $89,000

If you use it for 1 year, it costs $1.46/hour

If you use it for 2 years, it costs $0.73/hour

If you use it for 3 years, it costs $0.48/hour

If you use it for 4 years, it costs $0.36/hour

If you use it for 5 years, it costs $0.29/hour

If you use it for 6 years, it costs $0.22/hour

If you use it for 7 years, it costs $0.19/hour

If you use it for 8 years, it costs $0.16/hour

If you use it for 9 years, it costs $0.14/hour

If you use it for 10 years, it costs $0.15/hour

 

Let’s say I already have a computer, but I’m deciding if I should buy a brand new MacBook Pro laptop. That’s an $1,800 investment….yeesh :-/

buy-a-new-macbook-pro-cost

Now that $1,800 price tag might cause some sticker shock, but what if we ran this through our Cost Analysis Calculator to figure out the cost-per-hour?

MacBook Pro cost = $1,800.
Hours used per day = 8 hours.
Years will use this for = 3 years.

We’ll use this formula for our calculation:
cost per hour formula

*NOTE* We use 300 days per year instead of 365 to account for weekends and days off.

Now we plug all the numbers into the formula, and get this:

Cost Per Hour = [COST] / ([Hours Per Day] x [300 days] x [Years])

….which translates to….

$0.25 = [$1,800] / ([8] x [300 days] x [3])

This shows us that if we use this Macbook Pro for 8 hours a day, for 300 days a year, for 3 years…..this computer actually only costs $0.25 per hour!!!!

Running the numbers through the calculator above instantly shows you how much it costs per year to operate:
cost-per-hour-macbook-pro

If your laptop is one of the main tools you use to produce work, then this $1,800 laptop is actually very cheap!

Now let’s say we wanna buy a Porsche 911. It costs about $89,000 and it’s pretty sweet!
porsche-stick-man

Now there’s nothing wrong with buying a fancy car, but let’s run it through the cost-per-hour calculator:

Cost Per Hour = [COST] / ([Hours Per Day] x [300 days] x [Years])

….which translates to….

$98 per hour= [$89,000] / ([1] x [300 days] x [3])

This means assuming we drive the car for 1 hour a day, for 3 years….it still costs $98 an hour to operate. Yikkees….

But let’s say you drive the car 4 hours per because you drive in a lot of traffic. Over the 3 years the Porsche 911 comes down to just $24/hour to operate.

However if you bought a reasonably priced used car for $25,000 and drove it the same, it would only cost $7/hour.

So if you’re deciding to buy something, run it through this Cost Analysis Calculator to figure out the Cost Per Hour first. The results are very helpful in deciding!

Social Media

Comments

comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here