Total Cost of Ownership (TCO) Calculator

Direct Costs
Hardware & Software

The capital expenditures and lease fees for servers, client computers, peripherals, network components, and
software.

Management

The costs associated with network, system and storage management, including labor staffing, maintenance
contracts, and professional services or outsourcing fees.

Support

The support staff labor hours and costs, training labor and fees, travel, support contracts and management
overhead.

Implementation

Cost associated with the implementation of the application. These usually include development (customization and
integration), testing, training, and consulting.

Communications fees

The inter-computer communication expenses for leased lines, remote access, and allocated WAN expenses.

Indirect Costs
End user IS

The cost of formal end-user training, casual learning, informal support outside recognized IT support channels,
self-development of applications, and local file maintenance.

Downtime

The lost productivity due to planned and unplanned network, system, and application unavailability.

TCO Calculator
Fill in the appropriate values for each cost category. Please note that this calculator does not take the depreciation of capital
assets into account. Capital costs are recorded at the time of purchase, rather than as an annual depreciation cost. Once all
the values are entered, go to the third tab "TCO Summary Sheet" to view the summarized results.
Direct Costs

Year 1

Year 2

Year 3

Total ($)

Hardware

Servers
Client computers
Peripehrals
Network components
Maintenance fees

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Total Hardware Costs

Software

License
Maintenance fees

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Total Software Costs

Management

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Local Area Network

Wide Area Network
Remote Access

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Total Communication Fees

Network
Systems
Storage

Total Management Costs

Support

Support staff
Training fees
Procurement procedures
Travel
Support contracts
Overhead labor

Total Support Costs

Implementation

Development/customization/integration
Training
Consulting/system integration
Other

Total Development Costs

Communication Fees

Total Direct Costs

Indirect Costs

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Year 3

Total ($)

End User IS

Formal end-user training

Informal end-user training
Self development of applications
Local file maintenance

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Total End User IS costs

Downtime

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Planned downtime
Unplanned downtime

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Total Downtime costs

Total Indirect Costs

Total Costs

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TCO Summary Sheet

After filling in the necessary values, the spreadsheet automically generates two TCO summary graphs. The first graph illustrates the total
difference between the project's direct and indirect costs. The second graph depicts the total direct and indirect costs per year.

Direct Costs
Total Hardware Costs
Total Software Costs
Total Management Costs
Total Support Costs
Total Development Costs
Total Communication Fees
Total Direct Costs

% of Total Cost
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Indirect Costs
Total End User IS costs
Total Downtime costs
Total Indirect Costs

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Year 1
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Total Direct Costs

Total Indirect Costs

Year 2
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Year 3
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3-Year TCO Cost Allocation - Direct versus Indirect

Total Cost ($)

3-Year TCO Yearly Costs

$1.00
$0.90
$0.80
$0.70
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
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Total Direct Costs

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Year 2

Total Indirect Costs

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Year 3