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Total cost of ownership is the sum of the purchase price of an asset plus operating costs for its lifetime. A simple example would be the cost of owning a car. You can buy a car, but you will still need to pay license fees and insurance premiums, and it must regularly be serviced.

Total Cost of Ownership (TCO) is an estimate of the total costs of goods, services or construction works over the whole of their life. It's the combination of the purchase price plus all other costs you will incur, less any income you receive.

TCO factors in costs accumulated from purchase to decommissioning. For a data center server, for example, this means initial acquisition price, repairs, maintenance costs, upgrades, service or support contracts, network integration, security, software licenses and employee training.

Key Takeaways Corporations use total cost of ownership as a means of analyzing business deals, while individuals look at TCO as a way of assessing potential purchases.

There are three core components to Total Cost of Ownership/TCO calculations: Acquisition/Physical Hardware Costs. Operating Costs. Personnel Costs.

Total cost of ownership (TCO) is an estimation of the expenses associated with purchasing, deploying, using and retiring a product or piece of equipment. TCO, or actual cost, quantifies the cost of the purchase across the product's entire lifecycle.

Transaction components include the net price paid, placing and managing the order, transportation costs, sample reviews, invoicing, inspections, total landed costs for international purchases, rejected product handling, and follow-up and improvements for future orders.

TCO is calculated by adding the three major components: purchase price, maintenance costs, and repair costs.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232