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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Methodology and limitations
Methodology based on standard industry calculations and Maintest’s practical industrial experience. This tool provides a planning estimate and does not replace project-specific engineering assessment. This tool is a screening and planning aid developed by Maintest. Results are indicative and depend entirely on the figures and answers you enter. They are not an engineering calculation, a safety assessment or a substitute for the manufacturer’s instructions, applicable standards or professional judgement. Weights, benchmarks and default values are Maintest planning assumptions and can be adjusted to your situation. Do not use this tool as the only basis for safety-critical decisions such as lifting, electrical work or lockout procedures.
Tool version 1.0 · Updated October 2026
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