Difference between revisions of "Contract Rate Calculator"
Jump to navigation
Jump to search
| Line 2: | Line 2: | ||
A contractor rate for each tractor and implement combination is calculated with the following steps: | A contractor rate for each tractor and implement combination is calculated with the following steps: | ||
====Contract Rate Caculation Parameters==== | |||
# Enter the average ‘Interest Rate’ paid on loans for new machinery (%), to factor in an opportunity cost. For example, 7 percent. | # Enter the average ‘Interest Rate’ paid on loans for new machinery (%), to factor in an opportunity cost. For example, 7 percent. | ||
| Line 11: | Line 13: | ||
[[File:Contract Rate Calculation Parameters.png|1000px|frameless|center]] | [[File:Contract Rate Calculation Parameters.png|1000px|frameless|center]] | ||
====Contract Rate Calculator Table==== | |||
# Click on the edit button for the tractor or implement to calculate a contract rate for. | # Click on the edit button for the tractor or implement to calculate a contract rate for. | ||
# Enter the price paid for the tractor or implement. | # Enter the price paid for the tractor or implement. | ||
| Line 18: | Line 20: | ||
[[File:Contract Rate Calculator.png|1000px|frameless|center]] | [[File:Contract Rate Calculator 2.png|1000px|frameless|center]] | ||
[[Irrigation Setup]] ⇐|⇒ [[Depreciation]] | [[Irrigation Setup]] ⇐|⇒ [[Depreciation]] | ||
Revision as of 04:44, 4 February 2022
This page enables users to calculate a contractor rate by factoring in depreciation and interest expenses for their tractors and implements, contract labour and profit margin – in addition to the Fuel, Oil, Repairs and Maintenance costs transferred from the Machinery Setup page.
A contractor rate for each tractor and implement combination is calculated with the following steps:
Contract Rate Caculation Parameters
- Enter the average ‘Interest Rate’ paid on loans for new machinery (%), to factor in an opportunity cost. For example, 7 percent.
- Enter the ‘Contract Labour Rate’ in dollars per hour. For example $35/hr.
- Enter a suitable ‘Profit Margin' as a percentage (%). For example 10%.
- Click on the ‘Submit’ button.
Contract Rate Calculator Table
- Click on the edit button for the tractor or implement to calculate a contract rate for.
- Enter the price paid for the tractor or implement.
- Enter an estimate of the salvage value of the tractor or implement, which is an estimate of how much the tractor or implement could be sold for at the end of its expected productive life (e.g. 15 years).
- Click on the submit button and a contracting rate ($/ha) will be shown in the table in the farthest right column. This is the Total FORM, interest, labour and depreciation + profit figure.
