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.

Replaces hand transplanting for tomatoes, peppers, brassicas, sweet potatoes.

Capacity 200 ac/yr

Wage + FICA + workers' comp + housing.

Used for interest on average investment.

Your cost of capital / required return.

Purchase price (modeled): $18,000 · useful life 12 yrs · salvage 20%.
Where the savings come from$ / ac / yrAnnual @ 60 ac
Labor displaced
6 hr/ac × $18/hr
+$106+$6,372
Chemical / crop protection
Less herbicide, banded vs broadcast, fewer passes
$0$0
Fuel & lube
Negative if the implement burns more diesel
-$2-$120
Yield / quality lift
Revenue gain from better stand, water, or harvest timing
+$40+$2,400
Total per-acre savings+$144+$8,652
Less: annual ownership cost
Depreciation $1,200 + interest $918 + ins/housing $270
-$2,388
Net annual benefit (own vs status quo)+$6,264
Simple payback
2.1 yrs
Price ÷ annual savings
NPV (12 yr)
+$54,062
@ 6% discount
Breakeven acres
17
You're above breakeven
Custom-hire alt.
$5,100
$85/ac × 60 ac

Cumulative cash flow

Crosses $0 in year 3
Verdict
Buy makes sense at 60 ac.

Net annual benefit of +$6,264 and 2.1-year payback. Custom-hire would run $5,100 per season — owning saves +$2,712 vs that route.

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.