Total Cost of Ownership Calculator

About this calculator

Total Cost of Ownership (TCO) looks past the sticker price of an asset to capture everything it actually costs over its useful life: the purchase price, plus every operating cost incurred while owning it (maintenance, fuel or energy, insurance, repairs, support contracts), minus whatever it's worth at the end (its salvage or resale value). The basic formula is TCO = Purchase Price + Operating Costs − Salvage Value.

Businesses use TCO to compare options that look similar upfront but differ wildly in ongoing cost — a cheaper machine that guzzles maintenance, or a pricier one that runs lean for a decade. It's a standard tool in procurement, fleet management, and IT asset decisions. This calculator takes your purchase price, total operating costs, and expected salvage value and returns the full lifetime cost of the asset.