🛒 Procurement & Purchasing

Total Cost of Ownership (TCO) Calculator

Estimate the full lifecycle cost of an asset instead of comparing purchase price alone.

Enter your figures

Results

Total cost of ownership

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Annual recurring cost

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Net end-of-life cost

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Average annual TCO

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Include only costs that belong to the same ownership boundary. If a cost is already embedded in another input, exclude it to avoid double counting.

Formula: TCO = purchase + setup + (annual operating + annual maintenance) × life + disposal − residual value.

How to use this calculator

What to enter

Enter or select the following as requested: Currency; Purchase price; Implementation / setup; Annual operating cost; Annual maintenance; Useful life (years); Disposal / end-of-life cost; Residual / resale value. Follow the units, valid ranges, examples, and options displayed beside each field.

What the result means

The procurement result compares supplier offers, minimum quantities, total cost, savings, or sourcing scenarios from the prices, volumes, exchange rates, and assumptions entered. Check whether freight, duties, taxes, quality, lead time, payment terms, and lifecycle costs are included.

When to use it

Use this to prepare a supplier comparison or sourcing decision. Validate quotes and contract terms and compare equivalent specifications, delivery conditions, and currency dates before selecting a supplier.