Quick answer
Annualized TCO spreads capital purchase across useful life and adds annual maintenance and estimated downtime cost. It helps compare replace-vs-repair decisions directionally.
Overview
Downtime cost is often underestimated. If you do not have a number, start conservative and refine with operations data.
Pair with asset criticality when prioritizing replacements.
How to use this tool
Enter purchase price, expected life in years, annual maintenance spend, and estimated annual downtime cost for the asset class.
Calculator
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Annualized TCO (directional)
$17,283
Limitations
Straight-line capital amortization; ignores financing, salvage value, and tax treatment.
FAQ
- How do I estimate downtime cost?
- Use lost production hours times value per hour, or historical incident costs if available.
Model this in Equipify
Connect assets, PM schedules, work orders, and billing so these metrics become live—not spreadsheet snapshots.