How to compare the cost of equipment use across jobs

Compare equipment-use costs using a documented allocation of purchase/hire, maintenance and operating inputs over a defined usage basis. A low apparent fuel cost does not represent the whole cost of owning a machine. Keep tax treatment separate from the operating model.

Explore the wider trust, access and operational records guides for the steps around this decision.

An illustrative annual-use model

Modelled input	Teaching amount
Defined annual ownership/use allowance	EUR 1,200
Maintenance allowance	EUR 300
Expected usage	300 hours
Allocated cost before excluded inputs	EUR 5 per hour

The result is EUR 1,500 divided by 300. These are invented assumptions, not depreciation advice, a market rental rate or a tax allowance.

Compare like with like

If fuel is separate, add it consistently. If a hired machine’s rate includes services missing from the ownership model, identify them. Consider delivery, collection and whether a job’s scheduling makes a shared resource unavailable elsewhere.

A two-hour illustrative use would allocate EUR 10 under the stated EUR 5/hour model before excluded inputs. Do not also allocate the full annual ownership allowance to that same job.

Review against actual usage

Lower utilisation changes the economics of a fixed-cost allocation. Keep planned and actual usage distinguishable, and review assumptions rather than presenting an estimate as a measured cost.

JobDiary’s equipment and job records can support the operating context. An automatic depreciation or equipment-cost allocation function is not claimed here. Agree accounting/tax treatment with the appropriate adviser and keep the worksheet’s definitions visible.

Connect this to the next step

Continue with What to ask about backups, exports and business continuity. If the next issue is elsewhere in the workflow, use Can you leave a job app and take your data with you?.

See JobDiary product questions to check how the product supports this work. Use the current product description and a trial to verify the fit for your business.