Network TCO Calculator
Total cost of ownership over the equipment life: capex, support, power, staff and circuits, with annual and per-port cost.
Inputs
Total Cost of Ownership
$1,240,000
Average Annual Cost
$248,000
Total Operating Cost Over the Life
$940,000
Operating Cost Share of TCO
75.8%
Cost per Port per Year
$258.33
Step by step
Values used
Upfront capital cost = 300,000 currency; Equipment life = 5 years; Annual support and maintenance = 18 % of capex; Annual power and cooling cost = 26,000 currency; Annual operations staff cost = 60,000 currency; Annual circuit and transit cost = 48,000 currency; Ports delivered = 960 ports
Network TCO
TCO = capex + (support + power + staff + circuits) × life in years.
Total Cost of Ownership
= 1,240,000
Average Annual Cost
= 248,000
Total Operating Cost Over the Life
= 940,000
Operating Cost Share of TCO
= 75.8
Cost per Port per Year
= 258.33
How it works
Capex is a one-off but every other line repeats annually, so over a five-year life the operating costs usually exceed the purchase price. Expressing support as a percentage of capex reflects how vendors actually price maintenance. Purchase-price comparisons routinely pick the more expensive option, because a cheaper box with a 22% support contract and higher power draw costs more before the warranty expires.
Formula
Network TCO
TCO = capex + (support + power + staff + circuits) × life in years.
- support
- Annual maintenance contract, expressed as a percentage of capex
- life
- Years the equipment stays in service before refresh
Frequently Asked Questions
How is Network TCO calculated?
TCO = capex + (support + power + staff + circuits) × life in years. Capex is a one-off but every other line repeats annually, so over a five-year life the operating costs usually exceed the purchase price. Expressing support as a percentage of capex reflects how vendors actually price maintenance.
Why does Network TCO matter?
Purchase-price comparisons routinely pick the more expensive option, because a cheaper box with a 22% support contract and higher power draw costs more before the warranty expires.
What values do I need to enter?
This calculator takes 7 inputs: Upfront capital cost, Equipment life, Annual support and maintenance, Annual power and cooling cost, Annual operations staff cost, Annual circuit and transit cost, Ports delivered. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.
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