Machinery Cost to Change Calculator
Compare the true cost of keeping your current machine against trading up to something new.
Current Machine (Trade-In)
New Machine
Should You Trade In or Keep Your Machinery?
The decision to trade in existing machinery is rarely straightforward. A newer machine promises lower repair bills and better reliability, but carries higher finance costs and depreciation. This calculator puts the full picture side by side so you can make the call with confidence.
How the calculator works
For your current machine, it spreads the original purchase cost, any finance already serviced, and annual maintenance over the total working lifespan to give a true annual cost. For the new machine, it calculates monthly repayments using standard amortisation, then spreads the total interest charge over the new machine's full working life — not just the loan term — giving a fair like-for-like comparison.
Cost per hectare (or per acre or hour) is calculated by dividing the total annual cost by the number of units worked each year. This is the most useful number for comparing machines of different sizes or those used on different acreages — a higher capital cost machine that covers significantly more ground per year can often justify itself on cost-per-unit terms alone.
UK Farm Machinery — Typical Costs & Lifespans (2026)
| Machine Type | Purchase Price | Working Life | Trade-In at End | Annual Service |
|---|---|---|---|---|
| 80–100hp Tractor | £65,000–£95,000 | 10–14 years | £18,000–£28,000 | £2,500–£5,000 |
| 130–160hp Tractor | £110,000–£160,000 | 8–12 years | £30,000–£55,000 | £4,000–£8,000 |
| 200hp+ Tractor | £160,000–£240,000 | 7–10 years | £50,000–£80,000 | £6,000–£12,000 |
| Combine Harvester | £350,000–£550,000 | 15–20 years | £80,000–£160,000 | £12,000–£30,000 |
| Self-Propelled Sprayer | £180,000–£280,000 | 8–12 years | £50,000–£90,000 | £8,000–£18,000 |
| Round Baler | £40,000–£75,000 | 10–15 years | £10,000–£22,000 | £2,000–£4,500 |
| Large Square Baler | £100,000–£160,000 | 10–15 years | £25,000–£50,000 | £4,000–£9,000 |
| Disc Cultivator (6m+) | £30,000–£65,000 | 12–20 years | £6,000–£18,000 | £800–£2,500 |
| Precision Drill | £50,000–£120,000 | 10–15 years | £12,000–£30,000 | £1,200–£4,000 |
Indicative ranges based on typical UK dealer prices and AHDB/farm business survey data for 2026. Actual figures vary significantly by brand, specification, dealer location, and condition. Always use your own purchase price and trade-in valuation from local dealers.
Worked Example: 130hp Tractor Trade-In Decision
A farmer is considering trading a 2019 130hp tractor for a new 150hp model. Here is how the cost comparison works out.
Current Machine — 2019 130hp Tractor
- Original purchase price£128,000
- Total finance interest paid£10,200
- Total working lifespan10 years
- Trade-in value now£38,000
- Annual service costs£6,200
New Machine — 2026 150hp Tractor
- Purchase price£155,000
- Deposit (incl. trade-in)£50,000
- 60 months at 6.9% APR£2,077/month
- Total interest charge£19,620
- Working lifespan / trade-in10 yrs / £42,000
- Annual service costs£3,100
Result: Keep the current machine — it costs £142/year less on a direct comparison. However, if the current machine's service costs rise above £8,000/year in years 8–10 (a realistic scenario for a high-hours tractor), the annual total would increase to £17,000–£18,000 and the new machine would become the cheaper option. The service cost forecast is often the most important variable in this calculation.
Frequently Asked Questions — Farm Machinery Cost to Change
- What should I enter for "total debt/interest paid"?
- Enter the total interest charge from your original finance agreement — the difference between what you borrowed and the total amount repaid. If you paid cash, leave this field at zero.
- Should the deposit include my trade-in value?
- Yes. If you're putting £18,000 trade-in and £7,000 cash as a deposit, enter £25,000 as the deposit. The calculator uses this to work out the finance balance.
- Why does the new machine show a lower annual cost than expected?
- The interest charge is spread over the full working lifespan, not just the loan period. A machine you run for 10 years carries a lower annual finance burden than one you trade in after 5 — even with the same loan.
- What if the new machine has lower repair costs?
- Enter realistic lower service costs for the new machine. This is often the strongest argument for changing — modern machines can halve maintenance spend in early years. Enter your best estimate for both machines.
- What is the typical working lifespan for a UK farm tractor?
- Most UK farmers keep a tractor for 8–15 years, depending on annual hours worked and maintenance standard. A medium-power tractor (100–130hp) used at 600–800 hours/year will typically reach 7,000–10,000 hours before major overhauls become uneconomical. On intensive arable farms, machines are often changed at 5,000–7,000 hours to maintain peak reliability. On livestock farms with lower annual hours, the same machine may give 12–15 years of service.
- When does it make financial sense to change machinery?
- The numbers most commonly support changing when: repair costs have risen sharply and offset the depreciation saving; the new machine will be used for substantially more hours, spreading capital cost more efficiently; or when an unexpectedly high trade-in value is available now that will fall further. If your current machine is running reliably and service costs are stable, the calculation almost always favours keeping it — the jump in capital cost and finance on a new machine is rarely recovered through service savings alone in the first 3–5 years.
- How do I calculate depreciation on farm machinery?
- This calculator uses straight-line depreciation: (purchase price − future trade-in value) ÷ working lifespan in years. This gives a flat annual depreciation figure that can be directly compared between machines. In practice, farm machinery depreciates fastest in the first 2–3 years, but straight-line gives a fair long-run average. Note this is economic depreciation for decision-making — it differs from writing-down allowances used for tax purposes.
- What APR should I expect on farm machinery finance in the UK in 2026?
- Agricultural machinery finance in the UK in 2026 typically ranges from 5.9% to 9.9% APR for hire purchase or conditional sale agreements. Manufacturer-backed schemes (John Deere Financial, AGCO Finance, CNH Industrial Capital) sometimes offer promotional 0% rates on specific models, but these are often offset by a higher purchase price. Farm finance arranged through a bank or specialist agricultural lender typically runs at 6–8% APR. Always compare the total charge for credit — not just the monthly payment — when evaluating finance offers.
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