Equipment ROI

Should you buy the machine — or hire it done?

New equipment is a five- or six-figure decision. This tool models payback period, 10-year NPV, and breakeven acres using extension-published machinery economics — then compares ownership against the custom-hire rate so you can see the cheapest path on your acres.

Equipment ROI & Payback Calculator

Will that machine actually pay for itself on your farm?

Pick a piece of equipment and your acreage. We calculate annual savings (labor, chemical, fuel, yield), ownership cost, payback period, and 10-year NPV using extension-published machinery economics — then compare against custom-hire as the alternative.

Edit any field below to model your specific machine.

Capacity 200 ac/yr

Wage + FICA + workers' comp + housing.

Used for interest on average investment.

Your cost of capital / required return.

Purchase price (modeled): $25,000 · useful life 10 yrs · salvage 20%.
Where the savings come from$ / ac / yrAnnual @ 60 ac
Labor displaced
2 hr/ac × $18/hr
Source: not cited
+$35+$2,124
Chemical / crop protection
Less herbicide, banded vs broadcast, fewer passes
Source: not cited
+$10+$600
Fuel & lube
Negative if the implement burns more diesel
Source: not cited
$0$0
Yield / quality lift
Revenue gain from better stand, water, or harvest timing
Source: not cited
$0$0
Total per-acre savings+$45+$2,724
Less: annual ownership cost
Depreciation $2,000 + interest $1,275 + ins/housing $375
-$3,650
Net annual benefit (own vs status quo)-$926
Simple payback
9.2 yrs
Price ÷ annual savings
NPV (10 yr)
-$4,919
@ 6% discount
Breakeven acres
80
You're below — scale up or share
Custom-hire alt.
$1,800
$30/ac × 60 ac

Cumulative cash flow

Crosses $0 in year 10
At 60 ac, ownership is a stretch.

You'd need ~80 ac to clear ownership cost. Consider hiring out at $30/ac ($1,800 total) or sharing the machine with a neighbor.

Source: Compiled from USDA NASS Custom Rate surveys (2023–2024), Iowa State Machinery Cost Estimator (2024), and university extension vegetable machinery budgets. Per-acre savings assume the implement displaces the most common baseline practice for that operation.
Method: Ownership cost uses straight-line depreciation, average-investment interest, and a small insurance/housing %. NPV discounts operating cash flows over useful life and adds discounted salvage.

Right machine, right acres, right time.

BAU's planning engine factors equipment capacity, labor savings, and cost-share opportunities into every rotation recommendation — so capital expense lines up with the crops that actually earn it back.