How to use this online Machine Hour Rate Calculator

This interactive tool helps you calculate the Machine Hour Rate (MHR) based on your actual cost data. It’s designed to be simple and practical for manufacturers, costing professionals, and students.

Step-by-Step Instructions:

• Step 1: Enter Fixed Costs
  Fill in the yearly amounts you spend on fixed costs like:
  • Depreciation (Machine cost ÷ life)
  • Insurance premiums
  • Rent allocated to the machine area
  • Portion of supervisor salary assigned to this machine
  • Interest on capital (if applicable)
• Step 2: Enter Variable Costs
  Add annual expenses related to operating the machine, including:
  • Operator salary
  • Electricity consumption
  • Maintenance and repair
  • Consumables (coolant, oil, etc.)
  • Tool wear and replacement
• Step 3: Enter Total Machine Hours Per Year
  Estimate how many hours this machine is expected to operate in a year. This could be based on shifts, daily usage, or planned capacity.
• Step 4: Click “Calculate Machine Hour Rate”
  Once all fields are filled, hit the Calculate button.
  The tool will instantly display your Machine Hour Rate (₹/hour) based on the total cost divided by annual machine hours.