About this calculator

Compare eligible purchase and rental programs over the same pallet demand horizon. Each scenario includes program-specific logistics, expected loss costs and a net terminal credit for ownership.

Inputs

How to use this calculator

Comparable program scenario

  1. Purchase price per required pallet (USD)Eligible ownership program only; no ownership is assumed for pooled/rental pallets.
  2. Repair cost per required position over horizon (USD)Total horizon allowance, not per use.
  3. Purchase-program logistics per position over horizon (USD)Enter all relevant return/reposition cost for this horizon.
  4. Replacement cost per expected loss (USD)Expected replacement spending, not a second loss forecast.
  5. Net terminal credit per required position (USD)Your net residual/recovery credit after accounting for surviving and replacement assets; no second loss reduction is applied.
  6. Rent per required position-day (USD)Actual agreement rate.
  7. Rental start / other horizon fee per position (USD)Exclude refundable deposits unless they are a genuine net cost.
  8. Rental charge per completed use (USD)Enter zero if already included elsewhere.
  9. Rental logistics per position over horizon (USD)All relevant return/reposition cost.
  10. Rental charge per expected lost pallet (USD)Agreement loss charge; no pool terms are assumed.

Shared inputs

  1. Required pallet positions in the programSame demand basis for all compared programs.
  2. Days in the comparison horizonWhole positive planning days.
  3. Expected completed uses per required positionForecast use count; fractional averages are allowed.
  4. Expected losses per required position over horizon (%)0–100, applied once to the demand cohort. This is an expected cost assumption, not confirmed missing stock.

Enter the shipment or scenario values, then select Calculate result.

Method

Formula and variables

Expected losses = required positions × entered horizon loss%. Purchase net cost = positions × (purchase + horizon repair + purchase logistics − net terminal credit) + expected losses × replacement cost. Rental net cost = positions × (days × daily rent + start fee + uses × per-use fee + rental logistics) + expected losses × rental loss charge.

Purchase price per required pallet (USD)
Eligible ownership program only; no ownership is assumed for pooled/rental pallets.
Repair cost per required position over horizon (USD)
Total horizon allowance, not per use.
Purchase-program logistics per position over horizon (USD)
Enter all relevant return/reposition cost for this horizon.
Replacement cost per expected loss (USD)
Expected replacement spending, not a second loss forecast.
Net terminal credit per required position (USD)
Your net residual/recovery credit after accounting for surviving and replacement assets; no second loss reduction is applied.
Rent per required position-day (USD)
Actual agreement rate.
Rental start / other horizon fee per position (USD)
Exclude refundable deposits unless they are a genuine net cost.
Rental charge per completed use (USD)
Enter zero if already included elsewhere.
Rental logistics per position over horizon (USD)
All relevant return/reposition cost.
Rental charge per expected lost pallet (USD)
Agreement loss charge; no pool terms are assumed.
Required pallet positions in the program
Same demand basis for all compared programs.
Days in the comparison horizon
Whole positive planning days.
Expected completed uses per required position
Forecast use count; fractional averages are allowed.
Expected losses per required position over horizon (%)
0–100, applied once to the demand cohort. This is an expected cost assumption, not confirmed missing stock.

Interpret the result

The lower net cost depends on entered rates and loss assumptions. Upfront purchase spending is separated from horizon net cost, and alternatives are not added.

Outputs: Program costs and difference over the entered horizon

User-assumption net-cost comparison of eligible, service-equivalent programs. No contract ownership rights, pool rules, repeated replacement-loss process, discounting, financing, tax or net residual value is inferred. Replacement spending and terminal credit must already reflect the chosen horizon; alternatives are not summed.

Worked example

Check the arithmetic

This example uses the starting values shown above. The arithmetic below is calculated independently of the interactive result.

Work through the calculation

  1. Expected losses = 100 × 5% = 5 pallets.
  2. Purchase net = 100 × (20 + 2 + 2 − 5) + 5 × 20 = $2,000.
  3. Rental net = 100 × (365 × 0.05 + 1 + 20 × 0.10 + 3) + 5 × 25 = $2,550. Purchase is $550 lower.

Compare the displayed result

Expected displayed result: Purchase: $2,000.00

FAQs

Is terminal credit reduced again for expected losses?

No. Enter a net terminal credit already consistent with surviving and replacement assets. The model does not apply a second loss reduction.

Example inputs and options

Starting values are examples unless a field identifies a dated rule. Unit selectors convert only fields marked for conversion. Rates and model options keep the units and basis shown in their labels.

Purchase price per required pallet (USD)
Example: 20
Repair cost per required position over horizon (USD)
Example: 2
Purchase-program logistics per position over horizon (USD)
Example: 2
Replacement cost per expected loss (USD)
Example: 20
Net terminal credit per required position (USD)
Example: 5
Rent per required position-day (USD)
Example: 0.05
Rental start / other horizon fee per position (USD)
Example: 1
Rental charge per completed use (USD)
Example: 0.1
Rental logistics per position over horizon (USD)
Example: 3
Rental charge per expected lost pallet (USD)
Example: 25
Required pallet positions in the program
Example: 100
Days in the comparison horizon
Example: 365
Expected completed uses per required position
Example: 20
Expected losses per required position over horizon (%)
Example: 5