Equipment Rental ROI Calculator
Analyze the return on investment for your rental equipment to determine profitability over its lifespan. This tool helps you make smart decisions about purchasing, pricing, and managing your rental fleet.
Make data-driven decisions when investing in new rental gear.
Set rental rates that ensure profitability for every item.
Know when to retire old gear and invest in new equipment.
Results
Enter values and click Calculate to see results
Understanding Rental Equipment ROI
Your rental fleet is a significant capital investment. Calculating the Return on Investment (ROI) for your equipment is crucial for understanding the true profitability of your rental shop. It's not enough that an item generates revenue; that revenue must also cover its initial purchase price and ongoing maintenance costs over its entire lifespan.
Formula: ROI = (Total Lifetime Revenue - Total Lifetime Cost) / Total Lifetime Cost × 100
By analyzing the ROI, you can identify which types of equipment are most profitable, which helps you build a smarter purchasing strategy. It also informs your pricing and helps you decide when it's more cost-effective to retire a piece of gear rather than continue paying for its maintenance.
Frequently Asked Questions
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