How is the Total Cost of Ownership (TCO) calculated?

TCO combines your initial purchase price with all recurring costs over your specified timeframe. This includes monthly payments, annual fees, maintenance costs, and any other related expenses. The result shows you the true financial commitment beyond just the purchase price.

What's included in the financing calculations?

Our financing calculator considers your APR (Annual Percentage Rate), loan term, and principal amount to calculate monthly payments, total interest paid, and total amount financed. You can adjust the APR to see how different rates affect your total cost.

How do percentage-based costs work?

Percentage-based costs are calculated as a portion of your base price. For example, if you set a 10% annual maintenance cost on a $10,000 item, we'll add $1,000 per year to your total cost. This is useful for expenses that scale with the item's value, like insurance or maintenance contracts.

What's the difference between monthly and annual cost views?

The monthly view shows your averaged monthly expenses, including prorated annual costs. The annual view shows your yearly total, combining monthly costs × 12 plus annual fees. This helps you understand both your month-to-month budget impact and yearly financial commitment.

How does the cost distribution chart work?

The cost distribution chart breaks down your total expenses into initial costs and recurring costs. This visual representation helps you understand what portion of your total cost comes from the purchase price versus ongoing expenses, helping you make better long-term financial decisions.

How accurate are the long-term cost projections?

Our projections are based on your input costs and specified timeframe. While they accurately calculate based on current costs, they don't account for inflation or potential price changes. For the most accurate long-term picture, regularly update your costs and use the simulation feature to model different scenarios.