Total Cost of Ownership

Simplified Calculator Tool to Incorporate Lifecycle Cost into Electronics Acquisition Decisions
Revised 7/19/2012
Total Cost of Ownership (TCO) modeling is a tool that systematically accounts for all costs related to an
information technology (IT) management decision. TCO includes all costs, direct and indirect, incurred
throughout the life cycle of an asset, including acquisition and procurement, operation and maintenance and
end-of-life management.

This TCO Calculator Tool allows users to compare the costs of different options for the life cycle management
of IT equipment with an emphasis on decisions that may have an environmental impact. For example, what is
the annualized cost of purchasing ENERGY STAR qualified equipment compared to a conventional unit? What
will be the cost savings of extending the period of use for equipment from 4 years to 5 years, or purchasing
only desktop processing units and keeping the current desktop monitors?

The Calculator Tool allows the user to enter up to 4 different products or scenarios for purchasing, operations
and maintenance, and end of life management of computer equipment. While the emphasis is on decisions
with a potential environmental impact, this tool includes data entry fields for any costs that the user might
consider in a TCO analysis. The user can also modify the tool to include additional cost categories of interest.
For more information on TCO, see Total Cost of Ownership for Electronics, available on the Federal
Electronics Challenge website at: http://www.epa.gov/fec/resources/costofown.pdf.

How to Use the TCO Calculator

Step 1

Choose up to four products or life cycle management scenarios to analyze. Enter

descriptive information about each product or scenario in Row 13 (e.g., product name, product
feature, alternative service life of equipment, or end of life management option such as
donation or recycling.) Examples of scenarios are entered in these cells.

Step 2

Enter cost data in purple-shaded cells (Columns C-F). The Calculator is organized into four
sections: general information, purchasing, operations & maintenance, and product disposition.
Instructions for data entry, specific to each cost category are provided line-by line in Column G.
Unless specified, all costs entered into the calculator should be on a per unit basis (i.e., total
cost/# of units).
Note 1: There are three mandatory data fields: electricity costs (Row 9), number of units (Row
10), and equipment purchase price (Row 16). Users can choose to enter data or omit any
other data fields depending on the scope of the analysis and data availability.
Note 2: Default values are provided in Column H, where available. For the best results, data
specific to your organization should be used whenever possible.

Step 3

View results. Scroll down to Rows 96 -98 for the results. Results are presented as total cost
per unit over service life; total annualized cost per unit; and total cost for purchase of specified
number of units. The Calculator Tool also provides subtotals for each life cycle phase
(purchase, operation & maintenance, and end of life management) at the end of each section.

Total Cost of Ownership

Simplified Calculator Tool to Incorporate Lifecycle Cost into Electronics Acquisition Decisions
Instructions: This Total Cost of Ownership Calculator Tool allows you to compare the total cost of ownership of alternative products or
product life cycle management scenarios. The Tool can calculate and compare up to 4 products or scenarios. For data entry, see line-by-line
instructions in Column G. All entries should be per unit cost. Default values are provided where available (see Column H). A * indicates a
mandatory data field.

Units

Instructions

Default Values

References

General Information
Electricity Rate*

$/kWh

Number of Units*

units

Input actual energy cost to override

default value.

$0.1020

$0.1020

EIA, 2011.

Purchased, leased or provided by seat

management contract.

Product or
Scenario 1
CPU+ LCD
product or w/ES, 4yr life, &
scenario
donation

Product or
Scenario 2
CPU+ LCD, w/
ES, 4yr life;
outsource
recycle

Product or Product or
Scenario 3 Scenario 4
CPU+LCD
w/ES; 5 yr life;
outsource
recycle

Optional: specify product or scenario

CPU + CRT, no analyzed in each column.
ES, 4 yr life,
outsource
recycle

Purchasing
Initial Cost
Hardware Acquisition*

For leases or seat management, can Desktop computer (CPU): $779; Cathode ray tube monitor (CRT)
enter the total per unit contract cost on $533; Liquid crystal display (LCD) $383; Notebook computer $1335.
line 16, then skip line 17 & 18.

$/unit

Operating system, utility applications,

communications software.

Software Acquisition

$/unit

Service Contracts

$/unit

Administrative

$/unit

Set Up & Installation

$/unit

Other
Subtotal Initial Cost

$/unit
$/unit

Including installation, operation,

maintenance and disposition, if
purchased with hardware or software
acquisition.
Including evaluating options,
developing bid specs, evaluating
proposals, and negotiating contracts.

$0.00

$0.00

$0.00

$0.00

Expected Service Life

Expected Service Life

years

Service life within the organization that

made the initial purchase, including
internal redeployment of the asset.

Operations & Maintenance

Training, Maintenance & Support
Training
Maintenance & Support

$/unit
$/unit

Initial and on-going training for end

user, including formal classes and
informal assistance.
Contract and staff support to maintain
and support PC, including technical
support, maintenance contracts and
repair costs.

Electronics Environmental
Benefits Calculator, Version
3.1., June 2012

Unit Energy Consumption & Cost

Desktop Processing Units

Power Consumption in "Active/Idle"
in "Sleep/Stand By"

For computers and monitors, users can choose to enter custom data on unit power consumption and usage patterns OR
enter a unit energy consumption (UEC) default value. Use rows 49, 67 and 94 to enter default values products.
Enter data in rows 34 - 39 to calculate
unit energy consumption for desktop
Mode
W
computers. For monitors use rows 5257, for notebooks use rows 70-77. If
data is not available, leave all cells
Mode
W
blank in the column and enter default
value in row 49.

See manufacturer specifications; ENERGY STAR qualified unit: 46.2

W; Conventional unit: 68.8 W.
See manufacturer specifications; ENERGY STAR qualified unit: 2.5 W;
Conventional unit: 3.4 W.

in "Off" Mode

See manufacturer specifications; ENERGY STAR qualified unit: 1.5 W;

Conventional unit: 1.7 W.

% of units turned off at night

In a typical office location, 36% of desktop computers are turned off at

night.

% power managed

In a typical office location, 8% of desktop computers are power

managed.

% of time in sleep during workday

In a typical office location, power managed desktop computers spend

approximately 38% of workday in sleep/standby mode.

Annual Unit Energy Consumption (calculated)

OR

kWh/yr

Default Annual Unit Energy Consumption

0.0

0.0

0.0

ENERGY STAR calculator

0.0
Only enter default value if data is NOT ENERGY STAR qualified unit: 276 kWh/yr; Conventional Unit (not
entered in rows 34 - 39. Note: You can ENERGY STAR qualified): 410 kWh/yr.
use default values for some product
scenarios & enter data in rows 34 - 39
for other product scenarios.

ENERGY STAR calculator

Enter data in rows 52-57 to calculate

unit energy consumption for monitors.
If data is not available, leave all cells
blank in the column and enter default
value in row 67.

ENERGY STAR calculator

kWh/yr

Monitors
Power Consumption in "Active/Idle" Mode

in "Sleep/Stand By" Mode

in "Off" Mode

% of units turned off at night

hrs/day

% power managed

hrs/day

% of time in sleep during workday

hrs/day

Annual Unit Energy Consumption (calculated)

OR

kWh/yr

See manufacturer specifications; ENERGY STAR qualified LCD: 25.2

W; Conventional LCD: 32.2 W; Conventional CRT: 73.4 W.
See manufacturer specifications; ENERGY STAR qualified LCD: 0.7
W; Conventional LCD: 0.7 W; Conventional CRT: 3.4 W.
See manufacturer specifications; ENERGY STAR qualified LCD: 0.6
W; Conventional LCD: 0.7 W; Conventional CRT: 1 W.
In a typical office location, 18% of monitors are turned off at night.
In a typical office location, 81% of monitors are power managed.
In a typical office location, power managed monitors spend
approximately 56% of workday in sleep/standby mode.

0.0

0.0

0.0

0.0
Only enter default value if data is NOT ENERGY STAR qualified LCD: 58 kWh/yr; Conventional LCD: 73
entered in rows 52-57. Note: default
kWh/yr; Conventional CRT: 436 kWh/yr.
values can be used for some product
scenarios & data entered in rows 5257 for other products scenarios.

Default Annual Unit Energy Consumption

kWh/yr

Notebooks
Enter data in rows 70-77 to calculate
unit energy consumption for
notebooks. If data is not available,
leave all cells blank in the column and
enter default value in row 94. Note
different data entry points are required
for the computer and display portions
of the notebook.

See manufacturer specifications; ENERGY STAR qualified unit: 14.1

W; Conventional unit: 20.9 W.

Power Consumption in "Active/Idle" Mode

in "Sleep/Stand By" Mode

in "Off" Mode

% of units turned off at night

In a typical office location, 18% of notebook computers are turned off

at night.

% power managed (computers)

In a typical office location, 8% of notebook computers are power

managed.

% of time in sleep during workday (computer)

In a typical office location, power managed notebook computers spend

approximately 38% of workday in sleep/standby mode.

% power managed (displays)

In a typical office location, 81% of notebook displays are power

managed.

See manufacturer specifications; ENERGY STAR qualified unit: 1.4 W;

Conventional unit: 1.6 W.
See manufacturer specifications; ENERGY STAR qualified unit: 0.8 W;
Conventional unit: 1 W.

ENERGY STAR calculator

% of time in sleep during workday (display)

Annual Unit Energy Consumption (calculated)

OR

kWh/yr

In a typical office location, power managed notebook displays spend

approximately 56% of workday in sleep/standby mode.

0.0

0.0

0.0

0.0
Only enter default value if data is NOT ENERGY STAR qualified notebook 69 kWh/yr; Conventional notebook:
entered in rows 70-77. Note: default
101 kWh/yr.
values can be used for some product
scenarios & data entered in rows 7077 for other products scenarios.

Default Annual Unit Energy Consumption

kWh/yr

Total Annual Energy Consumption

Total Annual Electricity Cost

kWh/yr
$/unit/yr

0
0.00

0
0.00

0
0.00

0
0.00

Total Electricity Cost over Expected Service Life

$/unit

$0.00

$0.00

$0.00

$0.00

For initial purchaser only.

Power Management (PM)

Enter cost of software per unit in
service. If your organization installed
centralized PM software, account for
these additional cost savings under
unit energy consumption above.

Purchase additional Software to Manage

Unit Power Consumption

$/unit

Training to Support PM

$/unit

End User Support for PM

Subtotal Power Management

$/unit
$/unit

IT staff and end user time in training

(labor rates X hours/unit).
IT Staff (labor rate X hours/unit).

$0.00

$0.00

$0.00

$0.00

Equipment Upgrade for Internal Reuse

Upgrade - Hardware & Software
Upgrade - Staff Resources
Subtotal Equipment Upgrade

$/unit
$/unit
$/unit

Including IT and property management

staff, if applicable (labor rate(s) X
hours/unit).

$0.00

$0.00

$0.00

$0.00

Other Operations & Maintenance

Use for any items not covered above.

Other Operations & Maintenance

$/unit

Subtotal Operations & Maintenance

$/unit

$0.00

$0.00

$0.00

$0.00

Product Disposition: Trade In, Sale, Transfer (to another Federal Agency), Donation, Recycling or Disposal

Administrative overhead
Removing equipment from desktop
Backing up hard drive

Media sanitization
Refurbish or upgrade equipment

$/unit
$/unit
$/unit

$/unit
$/unit

Storage

$/unit

Packing
Shipping/Transportation

$/unit
$/unit

Support to Recipient

Recycling/Disposal Fees

Outsourcing (any of the above)

Gartner, November 2005.

Inventory management and forms @ $25/unit ($50/hr X .5 hrs);
preparing transfer documents @ $12.50 ($50/hr X.25 hrs). Other
costs to include: finding a charitable organization that wants the
equipment (20-40 hrs divided by # of units); selecting and contracting
with a recycling service provider (5-20 hours divided by # of units);
using a GSA Schedule provider (number of hours of staff time divided
by # of units.)

Labor rate X hours/unit.

$8.75/unit ($35/hr X .25 hrs)

Gartner, November 2005.

Labor rate X hours/unit.

$12.50/unit ($50/hr X .25 hrs)

Gartner, November 2005.

$12.50/unit ($50/hr X .25 hrs)

Including any hardware or software
purchases and labor (rate X
hours/unit). This line item cost may be
included in recycling or outsource
contracts.

Gartner, November 2005.

Include hardware and software costs

and labor (e.g. new software license
and installation).

$8.75 for reloading operating system ($35/hr X .25 hrs); $12.50 for
testing PC ($50/hr X .25 hrs). $0 when recycling equipment.

Gartner, November 2005.

Labor cost @ $4.38/unit ($35/hr X .125 hrs)

Gartner, November 2005.

Including cost of storage ( $/ft2/month

X months in storage) plus labor costs
of putting into storage and taking out
of storage).
Including packing supplies and labor
costs (rate X hours/unit).

Gartner, November 2005.

Including labor (e.g., installation
assistance, technical support) and
recycling/disposition services.

$/unit

All equipment is eventually recycled or $40/unit, including shipping

disposed of, by your organization or a
subsequent user. Include costs to your
organization as well as subsequent
users.

Gartner, November 2005.

Cost of contract. Administrative costs $48.25/unit, including media sanitization using three-pass DOD
pertaining to contract should be
Standard 5220-22-M wipe, inventory, reporting, auditing, and
included here or in administrative line refurbishing, but not including shipping.
item above.

Gartner, November 2005.

This line item may include equipment Revenues vary depending on equipment age. For 3 year old PC,
trade-in, if not included in new
assume resale value of 5-7 percent of initial cost. For equipment 4+
equipment purchase price; equipment years, assume zero resale value.
sale; or recycling revenue.

Gartner, November 2005.

$/unit

$/unit

Revenues

$/unit

Other
Subtotal Net Disposition Cost

$/unit
$/unit

$0.00

$0.00

$0.00

$0.00

$/unit
$/unit/yr
0

$0.00
#DIV/0!
$0

$0.00
#DIV/0!
$0

$0.00
#DIV/0!
$0

$0.00
#DIV/0!
$0

Total Cost per Unit Over Service Life

Total Annualized Cost per Unit
Total Cost for Purchase of:

Including inventory management,

transfer paperwork, payment
processing, finding a charitable
organization, or finding & contracting
with a recycler. Labor rate(s) X
hours/units.

References
Electronics Environmental Benefits Calculator, Version 3.1., June 2012.
Energy Star, 2012. Saving Calculator for Qualified Office Equipment. http://www.energystar.gov. Downloaded 5/10/2012.
Gartner, Inc. 2005. PC Disposal Cost Update 2005: Mitigating Risks. Research ID Number. G00134319.
U.S. Energy Information Association, 2011. Electric Power Annual 2010. ES1. Summary Statistics for the United States. Relea
November 9, 2011. http://www.eia.gov/electricity/annual/