Cost Per Use Calculator – “Should I Buy This!?”
Deciding if you should buy something expensive?
Looking at JUST the price doesn’t make sense. Sometimes it’s helpful to review the Cost-Per-Hour.
Let’s say I already have a laptop, but I’m deciding if I should buy a brand new MacBook. That’s a £1,000 investment….yikes!
Now that £1,000 price tag might cause some sticker shock, but what if we look at the cost-per-hour?
MacBook Pro cost = £1,000
Hours used per day = 6 hours (for work and entertainment)
Years will use this for = 3 years
We’ll use this formula for our calculation:
*NOTE* We use 300 days per year instead of 365 to account for weekends and days off.
Now we plug all the numbers into the formula, and get this:
£1,000 / (6 x 300 x 3) = £0.19 per hour
This shows us that if we use the Macbook for 6 hours a day, for 300 days a year, for 3 years…..this computer actually only costs £0.19 per hour!!!!
If your laptop is one of the main tools you use for work and entertainment, then this £1,000 laptop is actually quite cheap!
Let’s Buy Something More Expensive:
Now let’s say we wanna buy a Porsche 911. It costs about £59,000 and it’s very flash!
But let’s run it through the cost-per-hour calculator:
£59,000 / (1 x 300 x 3) = £65.56 per hour
This means assuming we drive the car for 1 hour a day, for 3 years….it costs £65 an hour to operate. Double Yikkees…
But let’s say you drive the car 4 hours per day because you drive in a lot of traffic. Over the 3 years the Porsche 911 comes down to just £16/hour to operate.
However if you bought a reasonably priced used car for £10,000 and drove it the same, it would only cost £3/hour.
So, if you’re deciding to buy something, run it through this Cost Analysis Calculator to figure out the Cost Per Hour first. The results are very helpful in deciding.