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TCO Comparison Calculator

Estimate the total cost of two alternatives over the same period.

TCO Comparison Calculator

Option A

Purchase / setupAnnual operating costAnnual downtime / risk costEnd-of-life costResidual value

Option B

Purchase / setupAnnual operating costAnnual downtime / risk costEnd-of-life costResidual value

Comparison period in years

Enter your assumptions, then calculate.

Formula

TCO = setup + years × (annual operating + annual risk/downtime) + end-of-life − residual value

Test useful life, operating cost, downtime and residual value. Add financing, tax, replacement cycles or discounting where material.

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