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Total cost of ownership calculator

An Excel calculator that compares options on their full lifetime cost, not just the purchase price.

Total cost of ownership (TCO) is everything a purchase costs over its life: the price, delivery, installation, running costs, maintenance, downtime and disposal. The cheapest quote is often not the cheapest option once these are included.

This calculator compares up to three options side by side over a period you choose, with costs entered by year and automatic totals, so you can show finance why the higher price may be the better buy.

Free to download. Available as Excel.

What's included

  • Set-up for up to three options
  • Acquisition costs: price, delivery, installation
  • Annual running and maintenance costs
  • Training, downtime and support costs
  • End-of-life and disposal costs
  • Automatic lifetime totals and comparison

How to use this template

  1. Choose the period to compare, usually the expected life of the purchase.
  2. Enter the acquisition costs for each option.
  3. Estimate annual running and maintenance costs.
  4. Add any downtime, training and disposal costs.
  5. Compare lifetime totals and note the assumptions behind each figure.

Frequently asked questions

For equipment, vehicles, IT systems and any purchase where running costs are significant compared with the price.

For large purchases you can discount future costs to today's value. This template keeps it simple, so add a discount rate if your finance team uses one.

Reasonable estimates are enough to compare options. Record your assumptions so others can check them.

Need help putting this into practice?

Every engagement is managed by our founder, starting with objectives agreed with you. Book an introductory call to see how our cost reduction work could help.

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Last updated 22 October 2026