TCO Analysis - Total Cost of Ownership Calculation

Overview

Total Cost of Ownership (TCO) shows the complete financial picture of an asset from purchase through its entire lifecycle. UniAsset automatically calculates TCO by combining purchase costs and cumulative maintenance expenses, giving you the true cost of owning each asset.

TCO analysis helps answer critical questions: Is it cheaper to repair or replace? Which assets drain the most budget? Are maintenance costs exceeding asset value?

UniAsset calculates TCO in real-time without requiring manual data entry beyond normal asset and maintenance tracking.

Who Can Access This

View TCO on Asset Details:

• Owner
• Admin
• Manager
• Employee (for assigned assets only)

View TCO Reports:

• Owner
• Admin
• Manager

Export TCO Reports:

• Owner
• Admin

How to Access This Section

Individual Asset TCO

1. Go to Assets in the sidebar
2. Click on any asset
3. Scroll to the Total Cost of Ownership card
4. View purchase cost, maintenance cost, and total TCO

TCO Reports

1. Go to Reports in the sidebar
2. Click the Costs tab
3. View one of three cost reports:
   • Asset Cost Report - TCO for each asset
   • Category Cost Report - TCO grouped by category
   • Department Cost Report - TCO grouped by department

Configuration / Page Breakdown

TCO Formula

UniAsset uses a straightforward formula:

TCO = Purchase Cost + Sum of All Maintenance Costs

Example:

• Purchase Cost: $5,000
• Maintenance Record 1: $200
• Maintenance Record 2: $150
• Maintenance Record 3: $75
• Total TCO: $5,425

Individual Asset TCO Card

When viewing an asset detail page, the TCO card displays:

Purchase Cost

• The original purchase price of the asset
• Set during asset creation or import
• Displays in your organization's currency

Maintenance Spent

• Sum of all maintenance costs logged for this asset
• Updates automatically when maintenance records are added
• Shows the number of service records with costs

Total Money Spent (TCO)

• Purchase cost + maintenance cost
• The true total amount invested in this asset
• Primary TCO metric

Annualized Cost

• TCO divided by years owned
• Shows average annual investment
• Helps compare assets purchased at different times

Years Owned

• Time since purchase date
• Calculated from purchase date to current date
• Minimum 1 year for annualized cost calculation

Asset Cost Report

Shows detailed cost breakdown for every asset.

Summary Cards (Top):

• Total Purchase Cost - Sum of all asset purchase prices
• Total Maintenance Cost - Sum of all maintenance expenses
• Total Cost of Ownership - Combined total across all assets

Data Table Columns:

• Asset - Asset name (linked to detail page)
• Serial Number - Asset identifier
• Category - Asset type
• Department - Department assignment
• Purchase Cost - Original price
• Maintenance Cost - Cumulative service expenses
• Total Cost (TCO) - Purchase + maintenance
• Annual Cost - TCO divided by years owned

Export Option:

• Click "Export CSV" (Owner/Admin only)
• Downloads complete cost data for all assets
• Includes summary totals and per-asset breakdown

Category Cost Report

Groups TCO by asset category.

Columns:

• Category - Asset category name
• Asset Count - Number of assets in category
• Purchase Cost - Total purchase costs for category
• Maintenance Cost - Total maintenance costs for category
• Total Cost (TCO) - Combined total
• Average Cost - TCO divided by asset count

Use Case: Compare which asset categories consume the most budget. Identify high-cost equipment types.

Department Cost Report

Groups TCO by department.

Columns:

• Department - Department name (or "No Department")
• Asset Count - Number of assets assigned
• Purchase Cost - Total purchase costs for department
• Maintenance Cost - Total maintenance costs for department
• Total Cost (TCO) - Combined total
• Average Cost - TCO divided by asset count

Use Case: Understand departmental asset investment. Support budget allocation and cost recovery.

Common Use Cases

Deciding Whether to Repair or Replace

An aging machine needs a $2,000 repair. Should you repair or replace?

Steps:

1. Open the asset detail page
2. Check the TCO card
3. Compare:
   • Purchase cost: $5,000
   • Current maintenance spent: $3,000
   • New repair cost: $2,000
4. Decision: Maintenance will total $5,000 (100% of purchase price)
5. Consider replacement instead of repair

Identifying Budget Drains

You need to reduce equipment costs. Which assets cost the most?

Steps:

1. Go to Reports > Costs
2. Open the Asset Cost Report
3. Sort by "Total Cost (TCO)" column (highest first)
4. Review top 10 assets
5. Identify patterns: old assets, specific categories, or departments
6. Target high-cost assets for replacement planning

Budget Planning by Department

Finance asks for next year's asset budget by department.

Steps:

1. Go to Reports > Costs
2. Open the Department Cost Report
3. Review annual costs per department
4. Export CSV for finance team
5. Use historical data to forecast next year's needs

Comparing Asset Categories

Which equipment types are most expensive to own?

Steps:

1. Go to Reports > Costs
2. Open the Category Cost Report
3. Compare total TCO and average cost per category
4. Identify categories with high maintenance-to-purchase ratios
5. Consider more reliable brands or models for future purchases

Best Practices

Always record purchase costs

• TCO requires accurate purchase price data
• Enter purchase cost during asset creation
• If unknown, estimate based on similar assets

Log all maintenance expenses

• Include labor, parts, and service fees
• Even small repairs add up over time
• Accurate maintenance costs = accurate TCO

Use TCO for replacement decisions

• Compare maintenance cost to purchase price
• If maintenance exceeds 50% of purchase price, consider replacement
• UniAsset highlights these as "high cost risk" assets

Review TCO reports quarterly

• Identify cost trends early
• Spot maintenance spikes before they escalate
• Adjust budgets based on real data

Compare annual cost, not just total TCO

• Assets purchased at different times need normalized comparison
• Annual cost accounts for age differences
• Helps prioritize replacement when budgets are tight

Export data for stakeholders

• Use CSV exports for finance and executive reports
• Include TCO data in capital planning presentations
• Support budget requests with real cost data

Important Notes & Limitations

TCO requires purchase cost

• Assets without purchase costs show maintenance-only totals
• TCO card does not appear if both purchase and maintenance costs are zero
• Set purchase cost to enable full TCO tracking

Maintenance costs must be logged

• Only logged maintenance records count toward TCO
• Preventive maintenance schedules do not add costs automatically
• You must log completed work with costs

TCO is calculated in real-time

• Not stored as a separate database value
• Always reflects current maintenance records
• Updates immediately when maintenance is logged

Currency is not converted

• All costs display in your organization's currency
• If you change currency settings, numbers remain the same
• TCO assumes all costs are in the same currency

Annualized cost uses minimum 1 year

• Prevents division by zero for recently purchased assets
• Assets owned less than 1 year use 1 year for annualized cost
• Provides conservative cost estimate for new assets

Employee role sees limited TCO data

• Employees only see TCO for assets assigned to them
• Cannot access organization-wide cost reports
• Managers and above see all asset TCO data

Archived assets are excluded

• Cost reports exclude archived assets
• Only active assets appear in TCO calculations
• Restore archived assets to include them in reports

Frequently Asked Questions

How is TCO different from depreciation?

TCO is actual money spent (purchase + maintenance). Depreciation is an accounting method to spread purchase cost over time. TCO tells you what you paid. Depreciation tells you accounting book value.

Can I see TCO for a specific time period?

No. TCO is always cumulative from purchase date to present. For time-specific costs, filter maintenance records by date and manually sum costs.

Why doesn't my asset show a TCO card?

The TCO card only appears if the asset has a purchase cost or maintenance records with costs. If both are missing, no TCO data exists.

What if I don't know the purchase cost?

Estimate based on similar assets or current replacement cost. Even approximate purchase costs make TCO useful. You can update the purchase cost later if you find exact records.

Does TCO include consumables or parts inventory?

Only if you log those costs in maintenance records. Consumable usage is tracked separately. To include consumables in TCO, log them as maintenance expenses when used.

Can I export TCO data for accounting?

Yes. Owners and Admins can export Asset Cost Reports to CSV. The export includes all cost data and can be imported into accounting software or Excel for further analysis.