Detailed analyses of machinery costs carried out on 500 full-time farms in Denmark from 1990 to 1996 show that the average machinery costs are 2,845 DKK per hectare before labour costs and 4,125 DKK per hectare after labour costs. The farms analysed have an average acreage of 136 hectares and consist of arable-, pig- and dairy farms. Arable farms have the lowest costs and dairy farms the highest and the costs are falling with increased acreage. The paper finishes with recommendations on how farmers can make a quick estimate of their own machinery costs and improve their investment planning.