Lifecycle Cost (LCC / TCO) Calculator

Undiscounted acquisition plus recurring costs less resale.

This selection changes review context only. Formulas and example inputs stay unchanged. Check the model assumptions and applicability for the actual process.

Identify the actual asset, process, work boundary, source documents, units and assumptions. Confirm that the selected model or template applies before using its results.

1 Inputs

Minimum: 0

Minimum: 0

Minimum: 0

Minimum: 1

Minimum: 0

2 Results

Total lifecycle cost
$145,000
Acquisition
$50,000 (34%)
Operating + maint.
$100,000 (69%)
Less salvage
−$5,000
Annual equivalent
$14,500
LCC = P + (O + M) × n − S
Undiscounted acquisition plus recurring costs less resale. Annual equivalent here is a simple average, not a discounted annuity. Include installation, disposal and major overhauls in your inputs, then compare equal service requirements.

Worked example

Example values are illustrative. Replace them with your measured data.

InputValue
Acquisition / purchase cost50000 $
Annual operating cost (energy, etc.)6000 $/yr
Annual maintenance cost4000 $/yr
Service life10 years
Salvage / resale value5000 $

Total lifecycle cost: $145,000

Related tools

About this calculator

How it works

LCC = acquisition cost + (annual operating cost + annual maintenance cost) × service life − salvage value. The annual equivalent is LCC ÷ years. The tool also shows what share of LCC is acquisition and what share is operating plus maintenance.

Worked example (illustrative inputs)

$50,000 purchase, $6,000 a year operating, $4,000 a year maintenance, 10 years, $5,000 salvage. Recurring cost = $100,000. LCC = $145,000, or $14,500 a year. Acquisition is about 34% of LCC and operating plus maintenance about 69%. The shares are taken before the salvage credit, so they add to more than 100%.

How to read the result

Compare options on LCC or the annual equivalent, not on purchase price. The annual equivalent puts options with different lives on the same footing. The model does not discount future years. For large decisions where timing matters, pair it with the capital project NPV calculator.

When to use it

Use it when choosing between assets or suppliers whose running and maintenance costs differ.

À propos de ce calculateur

Traduction (brouillon) — à relire.

Fonctionnement

Coût global (LCC) = coût d'acquisition + (coût d'exploitation annuel + coût de maintenance annuel) × durée de vie − valeur résiduelle. L'équivalent annuel est le LCC ÷ années. L'outil montre aussi la part du LCC due à l'acquisition et celle due à l'exploitation et à la maintenance.

Exemple chiffré (valeurs d'illustration)

Achat de 50 000 $, exploitation de 6 000 $/an, maintenance de 4 000 $/an, 10 ans, valeur résiduelle de 5 000 $. Coûts récurrents = 100 000 $. LCC = 145 000 $, soit 14 500 $ par an. L'acquisition représente environ 34 % du LCC et l'exploitation plus la maintenance environ 69 %. Ces parts sont calculées avant déduction de la valeur résiduelle, d'où un total supérieur à 100 %.

Lire le résultat

Comparez les options sur le LCC ou l'équivalent annuel, pas sur le prix d'achat. L'équivalent annuel met sur un pied d'égalité des options de durées différentes. Le modèle n'actualise pas les années futures. Pour une grosse décision où le calendrier compte, associez-le au calculateur de VAN de projet.

Quand l'utiliser

À utiliser pour choisir entre des équipements ou des fournisseurs dont les coûts d'exploitation et de maintenance diffèrent.

حول هذه الحاسبة

ترجمة (مسودة) — للمراجعة.

طريقة الحساب

تكلفة دورة الحياة LCC = تكلفة الشراء + (تكلفة التشغيل السنوية + تكلفة الصيانة السنوية) × عمر الخدمة − القيمة المتبقية. المكافئ السنوي = LCC ÷ السنوات. وتعرض الأداة أيضاً حصة الشراء وحصة التشغيل والصيانة من LCC.

مثال محسوب (قيم توضيحية)

شراء بـ 50,000 دولار، تشغيل 6,000 دولار سنوياً، صيانة 4,000 دولار سنوياً، 10 سنوات، قيمة متبقية 5,000 دولار. التكاليف المتكررة = 100,000 دولار. LCC = 145,000 دولار، أي 14,500 دولار سنوياً. الشراء نحو 34% والتشغيل والصيانة نحو 69%. تُحسب الحصتان قبل خصم القيمة المتبقية، ولهذا يتجاوز مجموعهما 100%.

قراءة النتيجة

قارن الخيارات على أساس LCC أو المكافئ السنوي لا سعر الشراء. يضع المكافئ السنوي الخيارات ذات الأعمار المختلفة على أساس واحد. النموذج لا يخصم السنوات المستقبلية، وفي القرارات الكبيرة التي يهم فيها التوقيت استخدمه مع حاسبة صافي القيمة الحالية للمشروع.

متى تستخدمه

استخدمها عند الاختيار بين أصول أو موردين تختلف تكاليف تشغيلهم وصيانتهم.

In one line

Undiscounted acquisition plus recurring costs less resale. Annual equivalent here is a simple average, not a discounted annuity. Include installation, disposal and major overhauls in your inputs, then compare equal service requirements.

Worked example

EXAMPLE

Illustrative values (the calculator defaults), not data from a real site.

Inputs
Acquisition / purchase cost50000 $
Annual operating cost (energy, etc.)6000 $/yr
Annual maintenance cost4000 $/yr
Service life10 years
Salvage / resale value5000 $
Results
Total lifecycle cost$145,000
Acquisition$50,000 (34%)
Operating + maint.$100,000 (69%)
Less salvage−$5,000
Annual equivalent$14,500

Frequently asked questions

What does lifecycle cost include?

Acquisition (purchase, install, commissioning), operating (energy, consumables), maintenance (PM, repairs, spares), and end-of-life (disposal minus salvage). More advanced models also discount future costs to present value.

Why use LCC instead of purchase price?

For most assets, ownership and operating costs dwarf the purchase price over the life. Choosing on price alone routinely picks the most expensive option overall — LCC reveals the real winner.

Does this calculator discount future cash flows to present value?

No — it sums nominal, undiscounted costs across the service life, which is simpler and fine for a first-pass comparison. For high-value, long-life decisions where the time value of money matters, use the Capital Project ROI/NPV calculator alongside this one.

How do I estimate salvage value if I'm not sure?

A common rule of thumb is 5–15% of original purchase price for equipment with a resale or scrap market, or zero for specialised assets with no secondary market. If unsure, entering zero gives a conservative, higher LCC estimate — the safer assumption for decision-making.

How should I compare two different assets using LCC?

Run each option through the calculator separately and compare their Annual equivalent cost figures rather than raw totals, especially if the options have different service lives — comparing totals unfairly favours whichever option has the shorter life and therefore accumulates less total cost.

Why do operating and maintenance costs usually dominate LCC?

For most powered industrial equipment, energy and upkeep costs compound every year the asset runs, while the purchase price is a one-time event. Over a 10–15 year life even modest annual operating costs typically add up to several times the purchase price.

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