Equipment TCO (quick)

What it does

TCO stands for "total cost of ownership" — the full lifetime cost of a piece of equipment, not just its sticker price. It adds up purchase, installation, and every year of maintenance and energy, then subtracts what you can sell it for at the end (salvage). This is the quick single-screen version for one piece of equipment; the Facility TCO Analysis calculator models the whole site and adds depreciation schedules and scenarios.

When to use it

Early screening when comparing two pieces of equipment and the cheaper one to buy may cost more to run. Crop-agnostic — works for lights, HVAC, dehumidifiers, anything with an install and running cost. Use it to avoid picking on purchase price alone; move to the Facility TCO Analysis calculator once you have narrowed the field.

What you enter

Purchase Price($)

Installation Cost($)

Annual Maintenance($/yr)

Annual Energy Cost($/yr)

Expected Lifetime(years)

Salvage Value($)

Facility Size(sq ft)

What you get

Total Cost of Ownership($)

Annual TCO($)

Depreciation per Year($)

Cost per Day($)

Net Present Value($)

Monthly Operating Cost($)

Cost per Sq Ft($/yr)

Ownership vs Lease Threshold($)

Reading the result

Total Cost of Ownership is the lifetime number to compare between options — lower wins, all else equal. Annual TCO and Cost per Day spread that over time so you can sanity-check against budget. Net Present Value discounts future costs at 8%/yr, so it is lower than the raw TCO and is the fairer figure when comparing options with different lifespans. Cost per Sq Ft helps benchmark against your facility. The "Ownership vs Lease Threshold" is the monthly figure a lease would need to beat to make leasing cheaper — cross-check it in the Lease vs. Buy tool.

Related calculators

• Lease vs. Buy Comparison
• Equipment Financing Payment Estimator
• Rebate Calculator
• Carbon Credits Estimator