Free article · Equipment cost planning
You know the season is unpredictable. Do you know your break-even point?
Wildfire Contractor Tools ·
Every wildfire contractor knows that owning equipment and being ready does not guarantee work. Some seasons bring several assignments. Others bring long stretches of waiting.
You cannot control how many calls come. You can calculate how many paid days your equipment needs to cover its costs—and what a shorter or longer season would mean for your business.
That is the purpose of Wildfire Contractor Tools: put your costs and possible assignment days together so you can see where you stand.
One truck, two different seasons
Insurance, registration, storage and other annual ownership expenses continue while the equipment is parked. Every paid assignment has to cover its operating expenses and contribute toward those annual bills.
Fictional example
These figures are invented to explain the calculation. They are not average wildfire rates or a recommended bid.
- $30,000 in annual fixed costs.
- $700 in expenses for each paid day, including driver pay, fuel and a maintenance allowance.
- $1,500 in revenue for each paid day.
Each paid day leaves $800 after those daily operating expenses. That money must first cover the $30,000 in annual fixed costs. Under these assumptions, the equipment needs 38 whole paid days to cover the entered costs.
| Season total | 40 paid days | 60 paid days |
|---|---|---|
| Revenue | $60,000 | $90,000 |
| Daily operating expenses | $28,000 | $42,000 |
| Annual fixed costs | $30,000 | $30,000 |
| Remaining after entered costs | $2,000 | $18,000 |
The daily rate stayed the same. The number of paid days changed the result substantially.
These remaining amounts are before income taxes and any expenses left out of the example. Travel is excluded here to keep the comparison simple. In your own estimate, include unreimbursed travel, additional repairs and other costs that apply to your operation. Your own work also has a cost if you are driving or operating the equipment.
What would fewer—or more—paid days mean for you?
Use a range of paid days to examine your own costs. Then ask:
- How many paid days would cover my entered costs?
- If I get fewer days, how much am I short?
- If I get a long assignment, how much will remain after expenses?
A calculator cannot predict dispatches or guarantee assignments. It can show what different amounts of work would mean for your business.
Start with the annual costs you already know
Start with a reasonable estimate of your annual fixed costs and a number of paid days you want to examine. Improve the estimate as you gather your records.
The free fixed-cost calculator shows how those annual expenses spread across paid workdays. Try a lower number of days and see how much each day must carry.
Try the free calculatorFor a fuller picture, the paid tools help you examine operating costs, assignment scenarios and break-even planning using your own figures. Access is $29.99 for 12 months, with one payment and no automatic renewal.