Total Ownership Cost

Total Ownership Cost (TOC) refers to the complete expense of owning and maintaining an asset over its entire lifespan. This includes the initial purchase price, ongoing costs such as repairs, maintenance, insurance, operating expenses, and eventual disposal or replacement costs. Understanding TOC helps individuals or organizations evaluate the true financial impact of acquiring an asset, beyond just its purchase price. It provides a comprehensive view of all costs involved, enabling more informed decision-making and better budgeting for long-term ownership.