Commercial equipment
Equipment downtime cost
Put a supplied lost-contribution value on breakdown and recovery time.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
lost hours*contribution per hour+repair+restart costs.
Contribution means revenue less avoided variable costs. Do not use gross sales or double count repair costs.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Lost contribution time (hours): Use matching records or a clearly identified owner assumption for lost contribution time, in the displayed unit and the stated row/period scope.
- Lost contribution per hour (selected currency): Lost revenue LESS variable expense avoided, divided by matching lost productive hours. Not gross sales.
- Repair cash expense (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for repair cash expense. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Restart expense (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for restart expense. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Total downtime cost is $2,200.00 for the illustrative inputs below.
Example inputs
- Lost contribution time: 8.00 hours
- Lost contribution per hour: $200.00
- Repair cash expense: $500.00
- Restart expense: $100.00
- Total downtime cost
- $2,200.00
- Lost contribution
- $1,600.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Put a supplied lost-contribution value on breakdown and recovery time.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.