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. Enter the cost and usage here:

**Hours used per day:**

New Phone $800 | MacBook Pro $1,800 | Porsche 911 $89,000

If you use it for **1** year, it costs **$1.46/hour**

If you use it for **2** years, it costs **$0.73/hour**

If you use it for **3** years, it costs **$0.48/hour**

If you use it for **4** years, it costs **$0.36/hour**

If you use it for **5** years, it costs **$0.29/hour**

If you use it for **6** years, it costs **$0.22/hour**

If you use it for **7** years, it costs **$0.19/hour**

If you use it for **8** years, it costs **$0.16/hour**

If you use it for **9** years, it costs **$0.14/hour**

If you use it for **10** years, it costs **$0.15/hour**

# How this cost analysis works:

Let’s say I already have a computer, but I’m deciding if I should buy a brand new MacBook Pro laptop. That’s an $1,800 investment….yeesh :-/

Now that $1,800 price tag might cause some sticker shock, but what if we ran this through our Cost Analysis Calculator to figure out the cost-per-hour?

**MacBook Pro cost =** $1,800.

**Hours used per day =** 8 hours.

**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:

**Cost Per Hour = [COST] / ([Hours Per Day] x [300 days] x [Years])**

….which translates to….

**$0.25 = [$1,800] / ([8] x [300 days] x [3])**

This shows us that if we use this Macbook Pro for **8 hours a day**, for **300 days a year**, for **3 years**…..this computer actually only costs **$0.25 per hour!!!!**

Running the numbers through the calculator above instantly shows you how much it costs per year to operate:

If your laptop is one of the main tools you use to produce work, then this $1,800 laptop is actually very cheap!

# Let’s Buy Something More Expensive:

Now let’s say we wanna buy a Porsche 911. It costs about $89,000 and it’s pretty sweet!

Now there’s nothing wrong with buying a fancy car, but let’s run it through the cost-per-hour calculator:

**Cost Per Hour = [COST] / ([Hours Per Day] x [300 days] x [Years])**

….which translates to….

**$98 per hour= [$89,000] / ([1] x [300 days] x [3])**

This means assuming we drive the car for 1 hour a day, for 3 years….it still costs **$98 an hour to operate.** Yikkees….

But let’s say you drive the car 4 hours per because you drive in a lot of traffic. Over the 3 years the Porsche 911 comes down to just **$24/hour to operate.**

However if you bought a reasonably priced used car for $25,000 and drove it the same, it would only cost $7/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!