TCO (Total Cost of Ownership)

Total Cost of Ownership (TCO) is the complete cost of buying and using a product over its entire lifespan. This includes not just the initial purchase price, but also maintenance, repairs, energy consumption, and any other costs associated with its operation. TCO helps individuals and businesses understand the true financial impact of a decision, allowing for better budgeting and investment choices. For example, while a cheaper car may have a lower upfront cost, higher fuel and maintenance expenses could lead to greater overall costs than a more expensive, efficient vehicle.