Free Engineering Tool
Lifecycle Cost Calculator (LCC)
Calculate total cost of ownership including acquisition, energy, maintenance, downtime, and disposal — all discounted to present value over the equipment’s full life.
Results
Lifecycle Cost Formula
The total lifecycle cost (LCC) includes all costs over the equipment’s useful life, discounted to present value:
Where Cannual = energy + maintenance + downtime, summed over n years with discount rate r.
NPV of Annual Costs (Annuity Factor)
When annual costs are constant, the NPV is computed using the present value annuity factor:
Annual Equivalent Cost
The annual equivalent cost (AEC) spreads the total LCC evenly over the equipment life:
Typical Cost Breakdown
| Equipment | Acquisition | Energy | Maintenance | Other |
|---|---|---|---|---|
| Industrial pump | 5–15% | 70–85% | 5–15% | 1–5% |
| Electric motor | 1–5% | 90–97% | 1–3% | <1% |
| Compressor | 10–20% | 60–75% | 10–15% | 2–5% |
| HVAC system | 15–25% | 50–65% | 10–20% | 5–10% |
Practical Example
Given: Acquisition = €5,000, Installation = €1,000, Energy = €500/yr, Maintenance = €300/yr, Life = 15 years, Discount rate = 5%
Cannual = 500 + 300 = €800/yr
Annuity factor = (1 – (1.05)–15) / 0.05 = 10.3797
NPV operating = 800 × 10.3797 = €8,304
LCC = 5,000 + 1,000 + 8,304 = €14,304
Acquisition share = 6,000 / 14,304 = 42%
Annual equivalent = 14,304 / 10.3797 = €1,378/yr
💡 Tip: For pumps and motors, energy costs typically dominate LCC. Investing in a higher-efficiency unit with higher acquisition cost often reduces total LCC significantly.
Professional field balancing instruments and software. Reduce energy costs and extend equipment life. Used in 50+ countries.
Nikolai Shelkovenko
Nikolai Shelkovenko is a vibration analysis engineer and the founder and CEO of Vibromera. For more than 15 years he has balanced rotating equipment in the field rather than on a test bench: mulchers, industrial fans, crushers, centrifuges, shafts and spindles. That work is what the Balanset instruments grew out of — they were designed as a tool a specialist can carry to the machine and use alone, on site, not as laboratory equipment. Vibromera was founded in 2017 and has been based in Porto, Portugal, since 2023. Development, assembly and support of the Balanset line all happen here. The flagship instrument is the Balanset-1A, a portable analyser for single- and two-plane balancing and for vibration diagnostics. Nikolai is personally involved in customer support, in working through difficult balancing cases and in the development of the software. He works with customers worldwide, in any language.
