Excavator and Equipment Hourly Rates
What does an excavator cost per hour with an operator? The table below gives the number for each machine from official cost data, and the calculator works out the rate your own machine needs, from your purchase price, fuel, hours, overhead and profit.
Hourly cost by machine
Machine only is FEMA's 2025 hourly rate, which covers ownership, fuel, maintenance, repairs and equipment overhead but not the operator. With operator adds an equipment operator at the BLS 25th to 75th percentile wage, loaded for benefits and payroll taxes ($34 to $53 an hour). Your billed rate adds company overhead (office, yard, admin) and profit on top.
| Machine | With operator | Machine only | Common work |
|---|---|---|---|
| Mini excavator (3–8 ton) | $90–$115 | $57 | Tight access, utilities, landscaping |
| Backhoe (TLB) | $125–$185 | $93–$129 | Septic, water and sewer taps |
| Skid steer / CTL | $60–$120 | $31–$62 | Grading, backfill, material moving |
| Mid-size excavator (20–30 ton) | $140–$205 | $108–$151 | Basements, mass excavation, demo |
| Large excavator (30+ ton) | $325–$390 | $291–$336 | Deep cuts, heavy civil, quarry |
| Dozer (D3–D6) | $105–$215 | $74–$161 | Pads, roads, spreading fill |
| Wheel loader (CAT 910–950 class) | $95–$195 | $65–$140 | Loading trucks, stockpile work |
US dollars per hour. With-operator ranges are rounded out to the nearest $5, machine-only to the dollar. Which FEMA machines each row uses, with their exact rates, and every source are listed under Sources below.
The math, shown transparently
The structure follows the U.S. Army Corps of Engineers equipment schedule (EP 1110-1-8): ownership is depreciation plus the cost of money on the average investment, and operating cost is fuel, filters, oil and grease, and repairs. The average-investment formula is the one the Corps, the Caterpillar Performance Handbook and the FAO all use. Insurance is your own premium; the Corps itself counts insurance as overhead. This is simplified from the Corps method: it uses your loan rate as is (the Corps discounts its cost-of-money rate), and it leaves out the Corps's price-index and regional labor adjustments to repairs and its separate tire line. Every number is visible in the breakdown above.
// Ownership: costs of having the machine
depreciation/hr = (purchase − salvage) / useful_life_hours
years = useful_life_hours / annual_hours
avg_investment = (purchase × (years + 1) + salvage × (years − 1)) / (2 × years)
finance/hr = avg_investment × rate / annual_hours
insurance/hr = annual_insurance / annual_hours
// Operating: costs of running the machine
fuel/hr = gallons_per_hour × price_per_gallon
fog/hr = fuel/hr × filters_oil_grease%
repairs/hr = purchase × repair_cost_factor / useful_life_hours
// Operator: loaded labor cost
operator/hr = base_wage × burden_multiplier
// Final rate
subtotal = ownership + operating + operator
with_overhead = subtotal × (1 + overhead%)
billable_rate = with_overhead × (1 + profit%) ← your minimum rate
Fuel use by machine
Two sources, and they disagree. The Corps of Engineers estimates fuel from rated horsepower; Caterpillar's handbook estimates what its machines burn at medium load (a few rows come from its machines' field data). The calculator's presets use the Corps estimate. Your own fuel log beats both.
| Machine | USACE estimate | Cat handbook (medium) |
|---|---|---|
| Mini excavatorCat 305E2, 40 hp | 1.2 | 0.9–1.3 (304E2/305E2, p. 25-16) |
| Mid-size excavatorCat 320F L, 161 hp | 5.0 | 2.9–4.3 (320F, p. 25-18) |
| Large excavatorCat 336F L, 303 hp | 9.4 | 5.8–7.7 (336E, p. 25-17) |
| Skid steerCat 262D, 74 hp | 2.5 | 2.0–2.6 (259D/262D, p. 25-13) |
| Compact track loaderCat 259D, 74 hp | 2.5 | 2.0–2.6 (259D/262D, p. 25-13) |
| DozerCat D5K2, 104 hp | 3.5 | 2.3 (D5K2, p. 25-9) |
| Wheel loaderCat 926M, 155 hp | 4.8 | 1.4–2.2 (926M, p. 25-38) |
| BackhoeCat 420F, 93 hp | 2.2 | 3.6–5.0 (420F2, p. 25-23) |
US gallons per hour. USACE estimate = rated hp × fuel factor (0.031 excavators and wheel loaders, 0.034 dozers, skid steers and CTLs, 0.024 backhoes) for the reference machine named. Cat handbook: Caterpillar Performance Handbook, Edition 49, medium load, Tier 4 Final engines where it splits by tier. Sources below.
Repairs: the line most rates leave out
The Corps of Engineers prices repairs as a share of the machine's value spread over its life: repairs per hour = price × repair cost factor ÷ life hours. A factor of 0.80 means repairs over the machine's life add up to 80 percent of what you paid. The Corps puts crawler excavators at 0.70 to 1.10 under average conditions (0.80 to 1.25 in severe work); each preset carries its class's factor.
Real repair bills start low and climb as a machine ages, so a flat average runs ahead of the bills on a new machine and behind them on an old one. Filters, oil and grease are a separate line, priced by the Corps as a percent of fuel cost. Caterpillar's handbook says repair cost per hour should come from your dealer, which is the best number when you can get it.
Billable hours vs. calendar hours
The Corps of Engineers starts from 2,080 hours (40 hours × 52 weeks) and takes out weather, holidays, repairs, moving between jobs and downtime. What is left, for one shift:
| USACE region | Hours per year |
|---|---|
| Northeast | 1,330 |
| Mideast | 1,410 |
| Southeast | 1,490 |
| North Central | 1,160 |
| Midwest | 1,270 |
| Southwest | 1,430 |
| West | 1,560 |
| Northwest | 1,480 |
| Alaska | 1,000 |
The calculator starts at the lower-48 median, 1,420 hours. These are the Corps's assumptions for its own contract work. If your machine sits in the yard between jobs or all winter, enter the hours it really bills: spreading ownership cost over hours that never happen makes the rate too low, and the idle months still cost depreciation, insurance and interest.
Sources and assumptions
Machine rates
Machine-only rates are from the FEMA Schedule of Equipment Rates (2025) (PDF, copy hosted by Alabama ADECA). FEMA: “Labor costs of the operator are not included in the rates and should be approved separately from equipment costs.” Each rate covers depreciation, overhead, maintenance, field repairs, fuel, lubricants and tires.
- Mini excavator (3–8 ton): Caterpillar 305 CR (code 8280) $57.14.
- Backhoe (TLB): Case 580 SUPER L (disc. 2000) (code 8401) $92.56, CAT Center-Pivot Backhoe Loader 420 (code 8572) $110.03, CAT Center-Pivot Backhoe Loader 450 (code 8573) $128.68.
- Skid steer / CTL: Bobcat S70 (code 8540) $31.06, Bobcat T450 (code 8381) $41.49, Bobcat S76 (code 8541) $45.23, Bobcat S86 (code 8542) $60.67, Bobcat T86 (code 8382) $62.38.
- Mid-size excavator (20–30 ton): Caterpillar 320 GC (code 8282) $107.93, Caterpillar 330 GC (code 8283) $150.99.
- Large excavator (30+ ton): Caterpillar 340 GC (code 8284) $291.49, Caterpillar 395 (code 8285) $336.18.
- Dozer (D3–D6): CAT D3 (code 8251) $74.10, CAT D4 (code 8252) $99.70, CAT D6 (code 8253) $160.75.
- Wheel loader (CAT 910–950 class): Caterpillar 910 (code 8392) $64.66, Caterpillar 926 (code 8393) $116.74, Caterpillar 950 (code 8396) $139.80.
Operator cost
Wage: national hourly wage for operating engineers and other construction equipment operators, BLS Occupational Employment and Wages, May 2025: Operating Engineers and Other Construction Equipment Operators (47-2073): 25th percentile $23.40, median $28.78, 75th percentile $37.10.
Benefits and payroll taxes: in private construction, total compensation is $51.96 an hour against $36.13 in wages (BLS Employer Costs for Employee Compensation, Table 4 (private industry, June 2026)), so each wage dollar costs 1.44. Loaded operator: $34 to $53 an hour, median $41. The calculator starts at the median wage and this 1.44 burden.
Method, fuel, life, repairs and hours
- Method: USACE EP 1110-1-8, Construction Equipment Ownership and Operating Expense Schedule (2021). Fuel: “Fuel Cost/hr = Horsepower (hp) x Fuel Cost/Gallon (gal) x Fuel Factor (gal/bhp-hr)”, with “Diesel = 0.34 lbs per bhp-hr”. Average investment: “Average Value Factor (AVF) = [[(N-1)(1+SLV)]+2]/2N”, the same expression as Caterpillar Performance Handbook, Edition 49 (SEBD0351-49), section 25 (p. 25-7) and FAO Forestry Paper 99, Cost Control in Forest Harvesting and Road Construction (1992), chapter 3.
- Useful life, repair cost factors, fuel factors and filters-oil-grease percentages by class, average conditions: USACE Equipment Hourly Calculation Factors (Dec 1, 2022). Reference machines and their rated horsepower: USACE equipment rate schedule, Region 3 (Nov 30, 2018).
- Working hours per year by region: USACE Area Adjustment Factors and working hours per year (Dec 1, 2022).
- Caterpillar fuel estimates: Caterpillar Performance Handbook, Edition 49 (SEBD0351-49), section 25, medium load, pages as listed in the fuel table (linked copy hosted by a Cat dealer).
- Tractor fuel (0.044 × max PTO hp) and repair costs rising with age: Iowa State University Ag Decision Maker A3-29, Estimating Farm Machinery Costs.
Calculator defaults and profit
- Fuel price starts at the U.S. average on-highway diesel price, $6.276 a gallon for the week of October 19, 2026 (EIA Gasoline and Diesel Fuel Update). Off-road business use is outside the federal highway fuel tax (IRS Publication 510, Excise Taxes), so what you pay for dyed diesel can differ from this average: use your supplier's price.
- Finance rate starts at the bank prime rate, 7.00% on October 21, 2026 (Federal Reserve H.15 Selected Interest Rates). Your loan rate may differ.
- Net income per dollar of receipts, corporations, tax year 2022: 5.5% for other specialty trade contractors, the group that includes site preparation (IRS Instructions for Form 1120, principal business codes), and 3.3% for heavy and civil engineering construction, computed from IRS Statistics of Income, corporation returns by industry, Table 5.1 (tax year 2022) as net income (less deficit) over total receipts.
- No official source was found for purchase price, salvage value, insurance, overhead or a profit target, so those start at example values for you to replace.
How the table is built
With operator = the class's lowest FEMA rate plus the 25th-percentile operator, to its highest FEMA rate plus the 75th-percentile operator, rounded out to the nearest $5. These are costs, not quotes. Caltrans, which publishes the same kind of ownership-and-operating rates, pays “the total of the direct equipment costs (rental rate) plus a 15 percent markup for all overhead not included as direct costs” and notes its rates are “likely to be lower than the rate charged by a rental yard.” Per the Caltrans 2025 Standard Specifications, section 9-1.04, that 15 percent covers overhead and profit together: “The markups specified for labor, materials, and equipment include compensation for all delay costs, overhead costs, and profit.”
The large-excavator range runs from the 340 GC (low end) to the 395, a mass-excavation machine FEMA lists at up to 550 hp (high end).
Cross-check against the Caltrans Labor Surcharge and Equipment Rental Rates, April 1, 2026 to March 31, 2027 (machine only): mini excavator (3–8 ton) CAT 305C CR $52.03, 308E2 CR SB $57.50; backhoe (tlb) CAT 420F2 $86.28, 450E $101.09; mid-size excavator (20–30 ton) CAT 320 $96.41, 320CL $126.52, 323F L $130.61, 330D L $231.24; large excavator (30+ ton) CAT 336F $226.05, 345BL $232.76, 350L $245.02; dozer (d3–d6) CAT D-3C $44.32, D-6R XL $127.95; wheel loader (cat 910–950 class) CAT 926 $77.68, 950M $199.62. Caltrans's rates differ from FEMA's: lower on most machines, higher on some (330D L $231.24 against FEMA's 330 GC $150.99; 950M $199.62 against FEMA's 950 $139.80).
Utility tractors have no row: FEMA lists only two older farm tractors without attachments, which do not fit small grading work. Use the calculator.
Frequently asked questions
What is a good profit margin for excavation work?
IRS tax data for 2022 show corporations in the group that includes site preparation and excavation kept about 5.5 cents of net income per dollar of receipts, and heavy and civil construction about 3.3 cents. Those are averages over profitable and losing companies, corporations only. No official source sets a profit target. For comparison, Caltrans pays a 15 percent markup on equipment for extra work, and that one markup covers overhead and profit together. The calculator's 15 percent profit markup is an example: set your own.
How many billable hours should I expect per year?
The U.S. Army Corps of Engineers starts from 2,080 hours (40 hours × 52 weeks) and takes out weather, holidays, repairs, moving between jobs and downtime. That leaves 1,160 to 1,560 hours a year for one shift in the lower 48, depending on region (1,000 in Alaska). Those are the Corps's assumptions for its own contract work; if your machine sits between jobs, enter the hours it really bills. Spreading ownership cost over hours that never happen makes the rate too low.
Should I include my own wage as operator?
Yes. Even if you are the owner-operator, your time has an opportunity cost. If you are in the seat, you are not estimating, managing, or selling. Pricing your time at zero makes the rate look artificially low and subsidizes every job with free labor. Charge at least what you would pay a competent operator.
How do I calculate fuel consumption per hour?
Best: your own fuel log, gallons in divided by hours on the meter. Without one, the U.S. Army Corps of Engineers estimates diesel use from rated horsepower: hp × 0.031 gallons for excavators and wheel loaders, × 0.034 for dozers, skid steers and CTLs, and × 0.024 for backhoes. Caterpillar's handbook estimates usually run lower than that, on some machines less than half, and higher on others such as the backhoe (the fuel table above shows both). The calculator's presets use the Corps estimate.
What about wear items like teeth, tracks, and hoses?
The repair cost factor carries repairs. It is the Corps of Engineers method: lifetime repairs as a multiple of the machine's price, spread evenly over its useful life, so 0.80 on a $250,000 machine with a 12,000-hour life is $16.67 an hour. The Corps puts crawler excavators at 0.70 to 1.10 under average conditions and higher in severe work. Real repair costs start low and climb as the machine ages, so a flat average runs ahead of the bills early on. Caterpillar's handbook says repair cost per hour should come from the dealer, which is the best number if you can get it. Filters, oil and grease are a separate line, priced as a percent of fuel.
Why is my calculated rate different from what rental houses charge?
Ownership cost is spread over the hours a machine bills: whoever keeps a machine busier pays less per hour for owning it. A rental rate also carries the rental company's own costs: Caltrans notes its cost-based rates are "likely to be lower than the rate charged by a rental yard. The rental yard rate may include additional overhead and profit as well as a premium for short-term rentals." Your rate has to cover the hours you actually bill, not theirs.
What is the difference between markup and margin?
Markup is applied to cost. Margin is the percentage of the selling price that is profit. A 20 percent markup on a $100 cost gives a $120 price with $20 profit, which is a 16.7 percent margin. A 15 percent markup gives a 13 percent margin. This calculator uses markup, applied to cost plus overhead.
How much does an excavator with operator cost per hour?
Official cost data puts a mid-size excavator (20 to 30 ton) with operator at about $140–$205 per hour, a mini excavator (3 to 8 ton) at $90–$115, and a large excavator (30+ ton) at $325–$390. That is FEMA's 2025 machine rate (ownership, fuel, maintenance) plus an operator at the BLS wage with benefits. It is a cost, not a quote: a contractor's billed rate adds company overhead and profit on top, and region, machine age and utilization move it. Run your own machine in the calculator above.
What is a typical backhoe (TLB) hourly rate?
With an operator, a backhoe costs about $125–$185 per hour on FEMA's 2025 rates for backhoe loaders (Case 580 Super L, CAT 420, CAT 450) plus a BLS operator wage with benefits. Caltrans's 2026-27 rates for the CAT 420F2 and 450E are lower ($86.28 and $101.09 machine only), about $24 and $28 an hour below FEMA's 420 and 450, so official schedules disagree; the calculator works out your own machine. Machine only, without the operator, subtract the loaded operator cost of about $34 to $53 an hour.
What should I charge for tractor work per hour?
There is no official rate that fits small utility-tractor work: FEMA lists only two older farm tractors, without attachments. Use the utility tractor preset in the calculator with your own purchase price, fuel and hours. The fewer hours a machine bills in a year, the higher its ownership cost per hour.
Is this free forever?
Yes. No signup, no email, no watermark. SpoilStack is a paid job tracker for excavation contractors. This calculator is free.
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