Total Cost of Ownership Calculator
What is Total Cost of Ownership (TCO) and Why it Matters
Total Cost of Ownership (TCO) is a financial estimate that calculates the direct and indirect costs of a product or system throughout its lifecycle…
How to Use This Calculator
- Enter the purchase price of the asset.
- Enter the residual value of the asset at the end of its useful life.
- Enter the useful life of the asset in years.
- Enter the annual maintenance cost of the asset.
- Enter the interest rate for the asset.
- Click ‘Calculate’ to see the total cost of ownership and a breakdown of the costs.
Formula & Methodology
The total cost of ownership is calculated using the following formula…
Real-World Examples
Data & Statistics
| Asset | Purchase Price | Residual Value | Useful Life (years) | Annual Maintenance Cost | Interest Rate (%) | Total Cost of Ownership |
|---|---|---|---|---|---|---|
| Car | $20,000 | $5,000 | 5 | $2,000 | 5 | $31,500 |
| Computer | $1,500 | $200 | 3 | $300 | 3 | $2,300 |
Expert Tips
- Consider all costs, not just the purchase price.
- Use accurate data for the best results.
- Regularly review and update your TCO calculations.
Interactive FAQ
What is depreciation?
Depreciation is the decrease in value of an asset over time…