Own vs. Custom Calculator
ASABE EP496.3 / D497.7 engineering cost analysis. Enter your operation details and compare ownership cost against hiring a custom operator.
EQUIPMENT PRESET
List: $550,000 | 300hp | 35ft
OPERATION DETAILS
ac
bu/ac
CUSTOM HIRE RATE
$/ac
bu/ac
$/bu
$
OWNERSHIP COST (ASABE)
$
%
%
hrs
hrs
%
%
%
%
$/gal
$/hr
ANNUAL COST COMPARISON
CUSTOM HIRE
Total Annual Cost$34,500.00
Cost Per Acre$34.50
Cost Per Bushel$0.86
Lower cost option
OWN EQUIPMENT
Total Annual Cost$55,649.42
Cost Per Acre$55.65
Cost Per Bushel$1.39
Annual savings: $21,149.42 by hiring custom
DIRTI-5 OWNERSHIP BREAKDOWN
FIXED COSTS
Depreciation$13,296.70
Interest$26,812.50
Repairs (ASABE D497.7)$708.52
Taxes$3,217.50
Insurance$1,787.50
Housing / Storage$4,125.00
Subtotal Fixed$49,239.20
OPERATING COSTS
Fuel (30.03/hr)$3,111.43
Labor ($25.00/hr)$2,590.27
Subtotal Operating$6,410.22
TOTAL ANNUAL OWNERSHIP COST$55,649.42
BREAK-EVEN ANALYSIS
Break-even acreage
1,753 ac
Your acres: 1,000
0 acBE: 1,753 ac2,279 ac
At 1,000 acres, hiring custom costs less. You need 753 more acres to justify ownership.
5-YEAR CASH FLOW
| Year | Custom Cost | Ownership Cost | Cumulative Diff | Residual Value |
|---|---|---|---|---|
| Year 1 | $34,500.00 | $55,649.42 | $-21,149.42 | $536,703.30 |
| Year 2 | $34,500.00 | $57,066.46 | $-43,715.88 | $523,406.59 |
| Year 3 | $34,500.00 | $58,483.51 | $-67,699.39 | $510,109.89 |
| Year 4 | $34,500.00 | $59,900.55 | $-93,099.94 | $496,813.19 |
| Year 5 | $34,500.00 | $61,317.59 | $-119,917.53 | $483,516.48 |
Positive cumulative difference means custom hire has saved money vs ownership over that period. Residual value assumes straight-line depreciation to salvage.
WHAT OPERATORS SEE
At your rate of $34.50/ac on 1,000acres/year, here is the operator's economics:
Gross Revenue
$34,500.00
Operating Costs (fuel + repairs + labor)
$6,410.22
Margin Per Acre
$28.09
Margin Annual
$28,089.78
Hourly earnings (before fixed costs): $271.11/hr
This excludes the operator's fixed costs (depreciation, interest, insurance). Those are covered by margin across all their clients, not just this job.