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Own machine or outsourced service

See whether it pays to keep your own machine or hire the service per hectare, and the area from which owning becomes cheaper.

Pre-sizing and estimating tool: the results do not replace a design, calculation, or report signed by a qualified professional, nor verification against the applicable standards.

Preliminary estimateRevision 12/11/2026
Own machine costs
Service and area

The default values are examples. Use the actual costs of your machine and the prices in your region.

Machine price (optional)
Economic analysis

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—Owned or outsourced
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Cost per hectare: own and outsourced

Cost per hectare of each option, with the area entered; the highlighted bar is the lowest cost.

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Annual cost by area worked

Annual cost of both options for 100 to 2,000 ha per year; the crossing of the lines is the break-even area.

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What if the data changes?

Drag the controls to simulate data different from what you entered (from 30% less to 30% more) and watch the result change instantly.

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Cost per hectare by area worked

Cost per hectare of both options for different areas per year, with the fixed cost and service price entered.

Step by step with your numbers

The calculation done in steps, with the values you entered.

    Project return

    Improvement cash flow: investment in year 0 and annual savings adjusted by the entered increase, discounted at the minimum attractive rate of return (TMA).

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    The calculation memo gathers this page's inputs, results, equations, assumptions, and references, with fields for project, responsible person, and review. The full report also includes the charts and interpretations, in color. In the print window, choose Save as PDF.

    How to use

    You can enter the annual fixed cost or, if you prefer, the machine price: in that case the calculator computes depreciation, interest and insurance, and the card Project return shows the payback and NPV of the purchase.

    Enter the machine's annual fixed cost, the variable cost per hectare, the price of the outsourced service per hectare, and the area worked per year. The calculator shows the cost per hectare of each option and the breakeven area.

    Worked example

    Fixed cost of R$ 60,000 per year, variable cost of R$ 95 per hectare, outsourced service at R$ 180 per hectare and 800 ha per year.

    Owned = 60,000 + 95 × 800 = R$ 136,000 per year, or R$ 170.00/ha. Outsourced = 180 × 800 = R$ 144,000, or R$ 180.00/ha. Difference of R$ 8,000 in favor of doing it in-house. Break-even area = 60,000 ÷ (180 − 95) = 706 ha per year.

    Precautions

    • If the area falls below the break-even area, outsourced service becomes cheaper, even if the machine is new.
    • For fixed cost, use actual depreciation, interest and insurance. See the machine depreciation.
    • To compare buying, financing and renting, see buy, finance, rent or lease.

    Method, assumptions, and references

    Equations used

    With machine price: fixed cost = (Price − Residual) ÷ Useful life + Interest × (Price + Residual) ÷ 2 + Insurance × Price. Economic analysis: investment = Machine price; annual saving = avoided service cost minus variable cost, interest and insurance (depreciation is not cash)
    Annual cost own (R$) = Annual fixed cost + Variable cost per ha × Area
    Own cost per ha (R$/ha) = Annual own cost ÷ Area
    Annual cost outsourced (R$) = Price per ha × Area
    Break-even area (ha/year) = Annual fixed cost ÷ (Price per ha − Variable cost per ha)

    Assumptions and limits

    • Annual fixed cost includes depreciation, interest, insurance and shelter of the machine, regardless of the area worked.
    • Variable cost per hectare includes fuel, maintenance, tyres and operator.
    • Outsourced service price per hectare, with the same operating standard.

    Standards and technical documents

    • Machine hourly cost and service prices per hectare in your region (service provider quotes).

    Frequently asked questions

    What goes into fixed cost?

    Depreciation, interest on capital, insurance, shelter, and the fixed part of maintenance. It is paid even if the machine works little.

    Why does the equilibrium area matter?

    Because it shows how many hectares per year are needed for owning the machine to pay off. Below that, outsourced service tends to be cheaper.

    Does the outsourced service carry schedule risk?

    Yes. During the harvest or planting window, the contractor's availability can delay the operation. This cost is not included in the calculation; assess it separately.

    Can I use the costs from the machine hourly cost calculator?

    Yes. Add the fixed part of the hourly cost multiplied by the hours per year, and use the variable part per hectare.