Commercial equipment
Equipment total cost of ownership
Compare full cash costs over a chosen ownership horizon.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
purchase+sum(operating+maintenance+fees)-resale.
Use the stated common ownership horizon for all future costs and resale. No discounting. Purchase is counted once; do not add loan principal or depreciation. Reserve deposits are not a second expense.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Ownership horizon (years): Explicit ownership horizon; every future cost and final resale uses that horizon.
- Purchase paid now (selected currency): Upfront cash purchase counted once; do not add depreciation or financing principal again.
- Resale received at end (selected currency): Owner-supplied expected sale receipt at the stated end date; scenario assumption, not market appraisal.
- All future operating maintenance and fee cash costs: One row per distinct all future operating maintenance and fee cash costs, on the stated row and period basis. Do not enter both components and their total.
- Cost amount (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for cost amount. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Undiscounted total ownership cash cost is $40,000.00 for the illustrative inputs below.
Example inputs
- Ownership horizon: 5.00 years
- Purchase paid now: $30,000.00
- Resale received at end: $5,000.00
- All future operating maintenance and fee cash costs
- Cost amount: $10,000.00
- Cost amount: $5,000.00
- Undiscounted total ownership cash cost
- $40,000.00
- Future cash expenses
- $15,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare full cash costs over a chosen ownership horizon.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.