Why divide by refurbished units only?

Those are the units that consume the cost. Dividing by the whole cycle made the per-unit figure fall when fewer units needed work, which flatters the budget and hides the fixed charge.

What goes in fixed shop and recertification cost?

Shop overhead, teardown and cleaning bays, inspection, documentation and recertification fees that do not move with the unit count. Pull them from the prior cycle's shop cost report.

How should I set the refurbishment budget?

Start from the same scope last cycle and add the rate changes you expect. The variance shows the cushion, and a negative value means the scope or the budget has to move.

Does the share need to be a measured number?

Use the share of the fleet your inspection program flagged in the last cycle. If work orders are still open, the share will rise, so budget the flagged count rather than the closed count.

Oil, Gas & Energy Equipment Manufacturing calculator

Rental Fleet Refurbishment Cost Calculator

Budget a refurbishment cycle from the units in it, the cost per unit and the share that needs work. The per-unit figure divides by refurbished units only, so the fixed shop and recertification cost spreads across the work done.

What this calculator does

Refurbishment cost for a rental fleet cycle, with the per-unit figure spread over refurbished units only and tracked against a budget.

Formula used

Refurbished units = units in the cycle × share of fleet needing refurbishment ÷ 100
Variable cost = refurbished units × refurbishment cost per unit
Total cost = variable cost + fixed shop and recertification cost
Cost per refurbished unit = total cost ÷ refurbished units, blank when no units are refurbished
Budget variance = refurbishment budget − total cost

Inputs explained

Units in Refurbishment Cycle: Whole pieces of rental equipment in this refurbishment cycle.
Refurbishment Cost per Unit: Average shop cost to refurbish one unit, parts and labor.
Share of Fleet Needing Refurbishment: Percent of the cycle population your inspection flagged for work.
Fixed Shop and Recertification Cost: Shop overhead, inspection and recertification fees for the cycle.
Refurbishment Budget: Budget the refurbishment cycle must stay within.

How to use the result

Best suited to budgeting a rental fleet turnaround, setting refurbishment recovery in day rates, comparing repair scope against replacement.
The per-unit cost divides by refurbished units only, and no weight or volume basis enters. A refurbishment that grows into a rebuild should be quoted separately.

Current U.S. benchmarks

Industrial electricity averages 9.77 cents per kWh across the U.S. (EIA, Jul 2026), up 4.7% from a year earlier. Energy-intensive steps carry this directly into unit cost.
Steel mill PPI stands at 381.162 (BLS, Aug 2026), up 23.4% from a year earlier. New factory orders are up 8.5% year over year (Census).

Common questions

Why divide by refurbished units only? Those are the units that consume the cost. Dividing by the whole cycle made the per-unit figure fall when fewer units needed work, which flatters the budget and hides the fixed charge.
What goes in fixed shop and recertification cost? Shop overhead, teardown and cleaning bays, inspection, documentation and recertification fees that do not move with the unit count. Pull them from the prior cycle's shop cost report.
How should I set the refurbishment budget? Start from the same scope last cycle and add the rate changes you expect. The variance shows the cushion, and a negative value means the scope or the budget has to move.
Does the share need to be a measured number? Use the share of the fleet your inspection program flagged in the last cycle. If work orders are still open, the share will rise, so budget the flagged count rather than the closed count.

Last reviewed 2026-10-01.