Browser-local worksheet
Enter your inputs
Nothing is uploaded or saved
How to use it
A short, reviewable workflow
- 01
Choose a whole-number analysis period and discount rate.
- 02
Enter at least two options with upfront, annual, and residual values.
- 03
Review present-value totals and test the assumptions before deciding.
Useful for
Common use cases
- Equipment alternatives
- Software buy decisions
- Lease or service option screening
Important boundary
What this result cannot decide
Material investments require validated cash-flow timing, tax, accounting, risk, operational, and financing review; lowest modeled TCO is not automatic approval.
Model notes
Assumptions and limitations
Assumptions
- Annual recurring and maintenance costs occur at year end.
- Residual value is received at the end of the analysis period.
- Cash flows and discount rate are nominally consistent.
Limitations
- Taxes, inflation, risk, downtime, and financing are included only through entered values or discount rate.
- Non-financial benefits are not scored.
- Timing within each year is simplified.
Questions
Frequently asked
Why discount future costs?
Discounting expresses future cash flows in present-value terms for a more consistent comparison.
How is residual value treated?
Its discounted value is subtracted from cost in the final analysis year.