Equipment rental pricing calculator

To work out rental pricing, you need to include the initial cost of the item, expected lifetime, resale value, utilization, and your profit margin, and overhead costs like labor, service bills, property rent, maintenance and repair. As this calculator is for general use, most of these values are assumed, so you may want to charge more or less depending on your own situation.

Of course, you would want to rent out your items 100% of the time, but that's not realistic as you need to account for days you're not open, downtime for things like maintenance, and fluctuations based on seasonality. For the purposes of this calculator, utilization is set at 40%, which is the average utlization across all industries.

The average profit margin for rental equipment is between 40% and 60%, but it can greatly depends on the industry you're in as the overhead costs are not always the same. For example, you may need to include costs for delivery, maintenance, seasonality, repairs, and equipment replacement costs.

To calculate your overhead costs, you need to add up everything that you spend money on to run your rental business. This will likely include software subscriptions, property rent, labor, taxes, marketing, and service bills. Once you know your total overhead costs, you can divide them by day and the number of items you rent out to understand what the cost is per item.

Yes! It's recommended to charge more for rentals during periods of high demand as it allows you to serve fewer customers without losing out on profit. During periods of low demand, you can also lower your prices to attract more customers during the quieter months to maintain your cashflow. This will help you to find the sweet spot for customer volume.