Total Cost of Ownership (TCO)

The complete cost of acquiring, operating, and maintaining a service or product over its entire lifecycle. TCO includes not just the purchase price but also operational costs, maintenance, and other expenses. This metric helps companies understand the full financial impact of their investments. 

Calculation Example: 

Purchase Price: $10,000 

Maintenance Costs Over 5 Years: $2,000 

Operational Costs Over 5 Years: $3,000 

TCO: $10,000 + $2,000 + $3,000 = $15,000