Result
Total cost of ownership (TCO)
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
TCO = purchase price + (maintenance + insurance + energy) × ownership period − resale value. The metric pulls together not just the purchase price but every recurring ownership cost over the whole service life, and subtracts whatever can be recovered by selling the asset.
Equipment with a lower purchase price doesn't always end up cheaper overall: if it has higher maintenance or energy costs, its TCO over a few years of use can exceed the TCO of a pricier but more efficient option — that's exactly the comparison this metric is for, not a purchase-price-only comparison.
Average TCO per year = TCO ÷ ownership period — a handy figure for comparing options with different service lives, or against an alternative like leasing or renting over the same period.