In short, Total Cost of Ownership (TCO) is how much an asset costs from the time of purchase, throughout the course of its lifetime. This includes its original purchase price and all expenses incurred from start to finish including:
- Acquisition Cost – An asset’s overall purchase price
- Operation Costs – Training, operating, utility
- Maintenance Costs – Repairs and upkeep (both parts and labor)
- Downtime Costs – Financial loses as a result of asset downtime
- Resale Value – Current value of an asset retains after a certain amount of time and usage