TCO Calculator
Total cost of ownership over the full asset lifecycle — from purchase through disposal. Compare true costs, not just sticker prices.
Inputs
Results
Total Cost of Ownership
₹0
Over full asset life
Annual TCO
₹0
Annualised over lifespan
Acquisition as % of TCO
0%
Hidden costs multiplier
Total Operational Cost
₹0
OPEX over full life
One-Time Costs
₹0
CAPEX incl. disposal
Formula Explained
TCO = (Purchase + Install + Disposal) + (Maintenance + Energy + Training) × Lifespan
TCO moves beyond the purchase price to capture every cost across the asset’s usable life. The acquisition price is typically just 30–50% of TCO — operational and maintenance costs quietly accumulate for years. A ₹5L machine that costs ₹60K/year to run over 10 years has a ₹11L true cost. TCO gives you the full number before you sign.
Cost Breakdown
Shareable Memo
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How it Works
TCO aggregates all costs tied to an asset from procurement through end-of-life. It separates one-time capital expenses (CAPEX) from recurring operational expenses (OPEX) and sums them over the full lifespan. This lets decision-makers compare options that have different acquisition vs operating cost profiles — a cheap machine with expensive maintenance vs a pricier machine with low upkeep.
How to Use
Enter your purchase price, all one-time setup costs, annual operating costs, and the expected lifespan. The calculator will show total TCO, annualised cost, and the proportion that the sticker price represents. Use this to compare competing offers on a level playing field, or to build a business case for a higher-upfront-cost, lower-OPEX option.
FAQ
Should I include depreciation?
TCO is a cash flow model, not an accounting model. Depreciation is a book entry — include actual spend instead. Disposal cost represents the real end-of-life cash impact.
Does TCO account for inflation?
This calculator uses nominal values. For long lifespans (10+ years), apply an inflation escalator to annual costs before entering them, or use a discounted cash flow model.
What if the asset generates revenue?
Use the ROI Calculator, which factors in both costs and returns. TCO is a cost-only view and does not account for value generated.
How should I handle uncertain maintenance costs?
Use the average of a realistic range. Run the calculator twice — with best-case and worst-case maintenance — to bracket your TCO exposure.