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Overtime vs New Machine Annual Cost Calculator

Compare assumed annual overtime labor cost with annualized machine capital and maintenance cost. Formula: overtime cost = overtime hours × loaded overtime rate; machine annual cost = annualized capital + annual maintenance; difference = overtime cost - machine annual cost. Positive difference means the entered machine annual cost is lower by that amount, before other costs.

Example values are prefilled to demonstrate the calculation. Replace them with values for your product, package, equipment, and operating conditions.

Inputs

Overtime and machine costs

Range: at least 0 hours/year

Enter annual overtime hours assumed avoidable by the proposed machine. Zero is valid; no staffing or legal assumption is supplied.

Range: at least 0 USD/hour

Enter overtime labor cost per hour, including only compensation components in your comparison. This is a user-defined cost basis, not a legal wage calculation.

Range: at least 0 USD/year

Enter annualized capital cost, not the one-time purchase price. Prepare the annualization separately using an approved finance basis.

Range: at least 0 USD/year

Enter expected annual maintenance/service cost for the machine.

Result

Overtime cost minus machine cost (positive favors machine)
$100,000.00/year
Annualized machine capital plus maintenance
$150,000.00/year
Annual overtime cost
$250,000.00/year

Calculation

Annual overtime cost
—
Annualized machine capital plus maintenance
—
Overtime cost minus machine cost (positive favors machine)
—

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