Equipment total cost of ownership (TCO) calculator
What a machine really costs over the years you keep it: the price and financing, every year of fuel, repairs, insurance and downtime, minus what you sell it for.
Your numbers
BuyingRunning, per year See your resultResult
Total cost of ownership $453,200over 6 years Per year $75,533 Per operating hour $62.94 Buying share / running share 44% / 56%$200,000 to buy, net of resale; $253,200 to run Stop working this out by handIn FleetZap, labor, parts and outside vendor costs from every work order roll up to each machine, and its reports total downtime, so the running side of ownership cost is always current.
See FleetZap Maintenance · Try the demoThe formula
TCO = Purchase price + Financing − Resale + Years × (Fuel + Maintenance + Insurance + Downtime per year)
With the example numbers: $250,000 + $40,000 − $90,000 = $200,000 to own, plus 6 × $42,200 = $253,200 to run, so $453,200, or about $63 per operating hour. The lifecycle cost guide explains each line and how repair cost grows with age.
Using the numberWhat to do with it
- Compare two machines on TCO, not price: a cheaper machine that burns more fuel or breaks down more can cost more within two years.
- Running costs are usually more than half of TCO on heavy equipment, which is why tracking repairs per machine pays off.
- Re-run it each year with real numbers. When the next year’s running cost would buy a big share of a new machine, look at replacing it.
Guides behind this calculator
Equipment lifecycle cost When to replace equipment Asset lifecycle managementMore free calculators
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The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.
- Work orders
- Preventive maintenance
- Procedures, inspections & field app
- Parts & purchasing
- Compliance
- Assets, reports & KPIs
Good to know
What is total cost of ownership for equipment?Everything a machine costs while you own it: the purchase price and financing, every year of fuel, maintenance, insurance and downtime, minus what you get when you sell it.
How do you calculate TCO?TCO = purchase price + financing − resale value + years × yearly running cost (fuel, maintenance, insurance, downtime). Dividing by total operating hours gives the cost per hour.
Why compare machines on TCO instead of price?Running costs are often more than half of what a heavy machine costs over its life, so a cheaper machine that uses more fuel or breaks down more can end up costing more.
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