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Total Cost Ownership Calculator
Total Cost Ownership Calculator
The TCO Calculator is designed to help people who are new to the concept of total cost of ownership.
It may not be particularly useful to those who are experienced and/or qualified in accounting or related disciplines - it is
recommended that these people continue to use their current methodology, or seek more sophisticated software.
The calculator contains a number of categories and sub-categories of costs associated with the life-cycle of an item. Some
these are obvious, like the purchase cost of the item, but some are things that you might not have thought of, such as the c
of outages. The calculator is designed to prompt you to think about costs that you may not have thought of, but you only ne
to enter data into the fields that apply to the product that you are procuring.
The TCO Calculator will automatically calculate:
* an overall Total Cost of Ownership
* totals for the various sections, categories and sub-categories, and
* percentages of the TCO for each of the categories.
The TCO calculator should be used in conjunction with the Guide to the Total Cost of Ownership.
This can be found on the website:
HomePage | Procurement.govt.nz
You can use the calculator to compare the TCO for several options, to make a decision about which is the least expensive o
the expected lifetime of the product or service.
You can ask suppliers to present the total cost of ownership in the proposals. You may use this Calculator as a template in y
tender.
This calculator is exclusive of GST. If an item was being purchased from overseas, it would be appropriate to include custo
duties as this are not claimed back by the entity via the GST process (GST is on top). See
http://www.customs.govt.nz/inprivate/charges/dutiesandcharges/Pages/default.aspx for details.
[insert name]
10
EXPENSES
Cost category 1
Cost items
Purchase price
Accessories
Legal costs (eg conveyancing)
Duties / taxes on purchased item (excludes GST)
Packaging
Delivery costs
Installation / integration / engineering / calibration costs
Testing / initial inspection costs
Building consents
Alterations, cabling, telephone links
Initial licence costs
subt
enter data here
6
Cost category 2
Cost items
unit cost
Annual licences
45,345.00
Consumables eg ink
345.00
Consumables eg lubricants
67.00
657,567.00
567.00
Consumables eg paper
567.00
Software upgrades
5,675.00
Staff training
676.00
Cost category 3
Cost items
Electricity
3,456.00
Gas
56,345.00
Water
3,456.00
Cost category 4
Cost items
unit cost
unit cost
Annual maintenance
4,567.00
Preventative maintenance
456.00
Other maintenance
654.00
Spare parts
678.00
54.00
Cost category 5
Cost items
unit cost
2,345.00
2,345.00
2,345.00
345.00
Cost category 6
Cost items
unit cost
345.00
345.00
3.00
345.00
5.00
Overtime costs
4.00
subt
Cost category 7
Cost items
subt
Cost category 8
Cost items
subt
INCOME
Income on disposal (one-off not per annum) Income items
Resale / salvage value of equipment
Resale / salvage value of parts
Resale / salvage value of operational items, eg, ink cartridges
subt
Summary
Total costs p.a.
% of TCO
3.25%
2,027,531.00
20,275,310.00
79.20%
70,169.00
701,690.00
2.74%
9,121.00
91,210.00
0.36%
6,810.00
68,100.00
0.27%
28,560.00
0.11%
0.05%
348,735.00
1.36%
3,190.00
0.01%
INCOME
total income
% of TCO
832,336.00
3.25%
2,477,222.00
9.68%
24,772,220.00
96.76%
3,190.00
0.01%
25,601,366.00
subtotal costs $
$
3,453.00
2,345.00
2,345.00
543.00
543.00
654,565.00
34,545.00
543.00
34,566.00
54,444.00
44,444.00
subtotal $
832,336.00
# p.a.
subtotal cost $
45,345.00
690.00
67.00
1,972,701.00
567.00
1,134.00
5,675.00
1,352.00
subtotal $
2,027,531.00
# p.a.
subtotal cost $
3,456.00
56,345.00
10,368.00
subtotal $
70,169.00
# p.a.
subtotal cost $
4,567.00
456.00
654.00
3,390.00
54.00
subtotal $
9,121.00
# p.a.
subtotal cost $
5,565.00
666.00
234.00
345.00
subtotal $
6,810.00
# p.a.
subtotal cost $
345.00
345.00
432.00
1,725.00
5.00
4.00
subtotal $
2,856.00
subtotal cost $
$
10,500.00
1,500.00
subtotal $
12,000.00
subtotal cost $
$
2,345.00
355.00
345.00
345.00
345,345.00
subtotal $
348,735.00
subtotal income $
$
2,345.00
345.00
500.00
subtotal $
3,190.00