Free tool
Equipment TCO Calculator
Calculate your equipment’s total cost of ownership (TCO) over its lifetime, discounted to present value.
Initial investment
Annual operating costs
Lifecycle
Result: equipment lifecycle cost
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Request a maintenance cost analysisHow the calculation works
The calculation uses present value: initial cost = purchase + installation; maintenance and energy costs are discounted with the sum over the service life ∑ 1/(1+r)^t; the residual value is discounted to the end of life and deducted. Total cost (NPV TCO) = initial cost + maintenance PV + energy PV − residual PV. You also see the average annual cost and the purchase price share of total cost (the “iceberg” effect).
Example: purchase EUR 80,000, installation EUR 5,000, maintenance EUR 3,000/yr, energy EUR 4,000/yr, 10-year life, 6% rate and EUR 8,000 residual value give an NPV of EUR 132,053, an average annual cost of EUR 13,205 and a purchase price share of 61% of total cost.
Frequently asked questions
What is TCO?
The total cost of owning a machine over its whole lifecycle, not just the purchase price.
Why not just compare purchase prices?
A cheaper machine can end up more expensive because of maintenance and energy costs.
What discount rate should I use?
The company’s cost of capital or required return, often 5–10%.
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