Decision Calculators

Equipment Life-Cycle Cost Calculator

Equipment Life-Cycle Cost Calculator takes purchase price, installation, annual energy, maintenance and downtime cost, life, salvage, annual output, and your own discount rate and returns the net present value of owning each candidate over its life, its equivalent annual cost, its cost per unit of output, and which one wins. Each candidate's cash flows are laid out year by year — capital and installation in year 0, annual running costs in years 1 to L, salvage as a credit in year L — and discounted at your own rate to a net present value. Equivalent annual cost converts that NPV back to a per-year figure using the capital recovery factor, so candidates with different lives compare fairly. Cost per unit divides the equivalent annual cost by your own annual output. Nothing is pre-filled with an outside figure — no assumed discount rate, no standard equipment life, no energy tariff, no manufacturer's cost-of-ownership claim. Every value on every sheet is one you entered or one computed from what you entered, against the As-of date you set on 1. Setup, never today's date.