Appliance Total Cost of Ownership Calculator
Calculate the true total cost of owning an appliance over its lifetime, including purchase price, installation, energy consumption, maintenance, repairs, and disposal costs.
Formulas Used
Annual Operating Cost (nominal):
Annual Operating = (kWh/yr × $/kWh) + Annual Maintenance + (Repair Cost × Repairs/yr)
Present Value of Annual Operating Costs (ordinary annuity):
PVoperating = Annual Operating × [1 − (1 + r)−n] / r (r > 0)
PVoperating = Annual Operating × n (r = 0)
Present Value of End-of-Life Cash Flows:
PVdisposal = Disposal Cost / (1 + r)n
PVsalvage = Salvage Value / (1 + r)n
Net Present Value — Total Cost of Ownership (TCO):
TCO = (Purchase Price + Installation) + PVoperating + PVdisposal − PVsalvage
Annual Equivalent Cost (AEC):
AEC = TCO × r / [1 − (1 + r)−n] (r > 0)
AEC = TCO / n (r = 0)
Simple (undiscounted) Total Cost:
Simple Total = Purchase + Installation + (Annual Operating × n) + Disposal − Salvage
Where: r = annual discount rate (decimal), n = lifespan in years.
Assumptions & References
- All costs are expressed in today's dollars. The discount rate accounts for the time value of money and/or expected inflation.
- Annual energy consumption (kWh/year) can be found on the appliance's EnergyGuide label (USA) or equivalent national energy rating label.
- The U.S. average residential electricity rate is approximately $0.13–$0.17/kWh (U.S. EIA, 2024). Adjust to your local utility rate.
- Repair frequency is expressed as incidents per year (e.g., 0.5 = one repair every two years).
- The annuity formula assumes costs are incurred at the end of each year (ordinary annuity).
- Typical appliance lifespans: refrigerator 12–17 yrs, washing machine 10–14 yrs, dishwasher 9–12 yrs, HVAC 15–20 yrs (NAHB, 2021).
- Salvage/resale value is typically $0 for most household appliances at end of life; some HVAC or commercial equipment may have scrap metal value.
- Disposal costs may include haul-away fees, recycling surcharges, or refrigerant recovery fees (EPA Section 608).
- This calculator does not account for tax credits, rebates (e.g., ENERGY STAR rebates), or utility demand charges.
- References: U.S. DOE ENERGY STAR program; U.S. EIA Electric Power Monthly; NAHB "How Long Do Home Systems and Appliances Last?" (2021); Engineering Economics — Blank & Tarquin, 8th ed.