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Total Cost Of Acquisition Calculator

Work out total cost of acquisition instantly with clear inputs, formula shown and shareable results.

About Total Cost Of Acquisition Calculator

Total cost of acquisition captures everything spent to get an asset into productive use: purchase price, landed logistics costs, installation and commissioning, and the internal cost of running the sourcing process. It routinely exceeds the quoted price by 20% or more.

Formulas

Landed cost

Landed = Purchase price + Freight, duty and insurance

Total cost of acquisition

TCA = Landed cost + Installation and commissioning + Internal procurement cost

Worked example

With the default values below, Total Cost Of Acquisition Calculator returns Total cost of acquisition of $5,760,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Purchase price
4,800,000
Freight, duty and insurance
420,000
Installation, commissioning and training
360,000
Internal procurement and qualification cost
180,000

Results

Total cost of acquisition
$5,760,000.00
Landed cost
$5,220,000.00
Costs beyond the purchase price
$960,000.00
Uplift over the purchase price
20.00%

Step by step

  1. 1Values used
  2. 2Landed cost
  3. 3Total cost of acquisition
  4. 4Total cost of acquisition= 5,760,000.00
  5. 5Landed cost= 5,220,000.00
  6. 6Costs beyond the purchase price= 960,000.00
  7. 7Uplift over the purchase price= 20.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is this different from total cost of ownership?

Acquisition covers only getting the asset in place. Ownership adds operating, maintenance, downtime and disposal costs over the whole life.

Why include internal procurement cost?

Because a complex sourcing exercise consumes real engineering and legal time. Ignoring it makes tendering look free and biases decisions towards over-tendering.

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