3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
On this page 7
- Finance repayment a month
- Owning it, an hour
- Insurance, an hour
- Wet hire break-even
An estimate from your figures. It leaves out resale value, tax, and the years after the loan ends.
See my insurance indicationThe starting figures are examples, not market rates. Replace each one with your own.
How do you work out a machine’s hourly rate?
Add up what the machine costs you in a year, divide by the hours it will actually work, then add your margin. The calculator splits that into three parts.
| Cost | What it includes | How it’s counted |
|---|---|---|
| Owning it | Finance repayments and insurance | A yearly cost, spread over your hours |
| Running it | Fuel, repairs and servicing | Per hour worked |
| Operating it | The operator’s wage and on-costs | Per hour worked, wet hire only |
What’s the difference between a wet and dry hire rate?
A wet hire rate includes the operator, and usually the fuel. A dry hire rate is for the machine alone, and the hirer brings the operator and fuel. Wet hire vs dry hire covers who is responsible for what.
Why do hours matter so much?
Finance and insurance don’t change when the machine sits idle. Using the example figures, the ownership cost is about $43 an hour at 1,000 hours a year, and about $72 an hour at 600. Be honest about wet days, moves, breakdowns and quiet months when you enter your hours.
How much does insurance add per hour?
Less than most people expect. A real excavator insured for $171,700 has a five-year premium of $5,511, or about $1,102 a year. At 1,000 hours a year, that’s about $1.10 an hour. A mini excavator insured for $55,209 has a five-year premium of $4,310, about $862 a year, or 86 cents an hour at the same hours. Yours depends on your state, item, value, term and registration.
What does the finance figure use?
The starting rate is the Reserve Bank’s average fixed rate on new small business loans, 8.09% in August 2026. The cash rate has since risen to 4.60%, so use your lender’s rate. The finance calculator handles deposits and balloons. This calculator doesn’t count resale value, tax or the years after the loan ends, so ask your accountant before you set a rate on it.
Why don’t we list market hire rates?
Hire rates change with the machine, the region, the job and the season, and we couldn’t find a public, independent source for them. Your own costs are the better starting point: they tell you the rate below which a job loses money.
Get an insurance indication for your machine
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Frequently asked questions
How much should I charge per hour for my excavator?
Enough to cover ownership, running and operating costs over the hours it really works, plus your margin. The calculator works it out from your own figures.
What are typical excavator hire rates?
They vary with the machine size, region, job and whether it’s wet or dry hire, and we couldn’t find a public, independent source for them. Work out your own break-even rate first, then compare it with what local hire firms charge.
How many hours should I allow per year?
Use the hours the machine really worked last year, not the hours you hope for. Idle time still costs you finance and insurance.
How much does insurance add to a machine’s hourly cost?
On a real $171,700 excavator with a five-year premium of $5,511, about $1.10 an hour at 1,000 hours a year.
Is fuel included in a wet hire rate?
Usually, but check. Some wet hire rates exclude fuel, so state it in your agreement.
Sources
- Reserve Bank of Australia: Statistical table F7, Business lending rates (published 8 October 2026)
- Reserve Bank of Australia: Cash rate target (rise to 4.60%, effective 30 September 2026)
- Product information and approved item list from our specialist insurance partner (August 2026)
General information only, not personal advice. Read the policy wording before you buy.
