NOTE:
An Excel O&O Estimating Form is available, in electronic spreadsheet format, to calculate an Hourly
Owning & Operating Cost Estimate based on the procedure outlined in this section.
The spreadsheet my be accessed via the website at
https://dealer.cat.com– From the home page, select “Product
Support,” “Equipment Management Solutions,” “Owning & Operating Costs.” Under the heading “Machine
Technical Information,” select “O&O COST ESTIMATING Form.”
HOURLY OWNING AND OPERATING COST ESTIMATE
DATE
_____________
Estimate #1
Estimate #2
A–Machine Designation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
__________
__________
B–Estimated Ownership Period (Years) . . . . . . . . . . . . . . . . . . . . .
__________
__________
C–Estimated Usage (Hours/Year) . . . . . . . . . . . . . . . . . . . . . . . . . .
__________
__________
D–Ownership Usage (Total Hours)(B
×
C). . . . . . . . . . . . . . . . . . .
__________
__________
OWNING COSTS
1. a. Delivered Price (P), to the Customer (including attachments)
__________
__________
b. LessTire Replacement Cost if desired . . . . . . . . . . . . . . . . .
__________
__________
c. Delivered Price LessTires. . . . . . . . . . . . . . . . . . . . . . . . . . . .
__________
__________
2. Less Residual Value at Replacement (S) . . . . . . . . . . . . . . . . . . (___%) __________ (___%) __________
(See subsection 2A on back)
3. a. Net Value to be recovered through work . . . . . . . . . . . . . . .
__________
__________
(line 1c less line 2)
b. Cost Per Hour:
Net Value
____________ (1) __________ (2) __________ . . . . . . . . . . . .
__________
__________
Total Hours
4. Interest Costs P(N + 1) + S(N – 1)
×
Simple Int. % Rate
_________________
N = No.Yrs.
2N
_____________________________________ =
Hours/Year
+ 1
– 1
+ 1
– 1
(1) _____ + _______
×
___ % (2) _____ + _______
×
___ %
________________________ = ________________________ =
__________
__________
_____ Hours/Yr.
_____ Hours/Yr.
5. Insurance
P(N + 1) + S(N – 1)
×
Insurance % Rate
_________________
N = No.Yrs.
2N
_____________________________________ =
Hours/Year
+ 1
– 1
+ 1
– 1
(1) _____ + _______
×
___ % (2) _____ + _______
×
___ %
________________________ = ________________________ =
__________
__________
_____ Hours/Yr.
_____ Hours/Yr.
(Optional method when Insurance cost per year is known)
Ins. $ __________ PerYr. ÷ __________ Hours/Yr. =
25-2 Edition 47
Owning & Operating Costs
Estimating Form




