Equipment Rental Financial Model - 10 Year Projection

Equipment rental is a cash flow business. You purchase equipment, then rent it out to try and make your money back. There are a couple different ways to plan this out and I have put together a dynamic model to show ROI for various assumptions. 

$75.00 USD

The template will be immediately available to download after purchase. This is included in the industry-specific financial model bundle and the industrial sector niche bundle.


equipment rental

Recent Updates:
  • Added a dynamic sources and uses.
  • Added bear, base, bull scenario toggle.
  • Improved the utilization logic and it applies to the frequency-related costs as well.
  • Added four more debt tranches.
  • Added revenue and expense escalators where relevant.
  • Monthly equity injection schedule with easier investor / owner inputs and DCF Analysis.
  • Rebuilt the CAPEX tab and salvage value / disposition logic flows into tax-related areas.
  • Included depreciation recapture logic.
  • Separated project-level returns cleanly.
  • All updates integrated into the 3-statement model.
This financial model is going to focus more on the timing of cash in and out but also includes depreciation and after tax cash flow if you want to drill all the way down. No matter what kind of equipment you are renting out, it is very likely that you build up your inventory over time. That means purchases at different times and cash going in and out over time.

So, in order to properly plan out the financials for such a business, dynamic business logic is required with respect to what is happening in a given month over the entire 10 year forecasted period.

Here are all the features:
  • Output reports: Income Statement, Balance Sheet, Cash Flow Statement; Cap Table; DCF Analysis, IRR for project / investors.
  • Define the frequency with which things are rented out and the resulting cost per occurrence as well as cost per return if applicable.
  • Up to 4 different loans that all have their own assumptions and can have different starting months if you plan on financing some of the purchases. You can time these up with purchase tranches of equipment if you plan to fund some of the costs with debt.
  • Up to 100 pieces of equipment (expandable to 1,000's if needed).
  • Manually pick the number of days utilized in a month across all 10 years (granular enough so each year you could have a different daily utilization for each piece of equipment).
  • Pick the start date that each piece of equipment starts producing.
  • Pick how much you will charge per day for each piece of equipment.
  • Pick the date that each piece of equipment is discontinued if applicable.
  • Enter its salvage value if applicable.
  • Each month, you will be able to see all the projected rental income, operating expenses, cash in/out from financing if any loans were taken out in that month, cash out if any equipment was purchased that month, cash out for debt service, and the net running cash position as of that date as well as the effect on cash specifically for the given month.
  • An annual summary has also been built.
  • A running balance of debt is tracked based on the loan inputs.

And again, you can make a copy of this Excel template so that one can be used to build your projections and the other can be used to put in actuals. This allows for better forecasting in the future as well as planning.

Note that every market is going to be different in this kind of business so you want to figure out how much local construction companies / other organizations are willing to pay per day for your equipment, what is the acceptable wear and tear, and all the insurance/paperwork details.