Total Cost of Ownership Calculator Tool for Electronics

OverviewTotal Cost of OwnershipSimplified Calculator Tool to Incorporate Lifecycle Cost into Electronics Acquisition DecisionsRevised 7/19/2012

Total Cost of Ownership (TCO) modeling is a tool that systematically accounts for all costs related to an information technology (IT) management decision. TCO includes all costs, direct and indirect, incurred throughout the life cycle of an asset, including acquisition and procurement, operation and maintenance and end-of-life management.

This TCO Calculator Tool allows users to compare the costs of different options for the life cycle management of IT equipment with an emphasis on decisions that may have an environmental impact. For example, what is the annualized cost of purchasing ENERGY STAR qualified equipment compared to a conventional unit? What will be the cost savings of extending the period of use for equipment from 4 years to 5 years, or purchasing only desktop processing units and keeping the current desktop monitors?

The Calculator Tool allows the user to enter up to 4 different products or scenarios for purchasing, operations and maintenance, and end of life management of computer equipment. While the emphasis is on decisions with a potential environmental impact, this tool includes data entry fields for any costs that the user might consider in a TCO analysis. The user can also modify the tool to include additional cost categories of interest.

For more information on TCO, see Total Cost of Ownership for Electronics, available on the Federal Electronics Challenge website at: http://www.epa.gov/fec/resources/costofown.pdf.

How to Use the TCO CalculatorStep 1Choose up to four products or life cycle management scenarios to analyze. Enter descriptive information about each product or scenario in Row 13 (e.g., product name, product feature, alternative service life of equipment, or end of life management option such as donation or recycling.) Examples of scenarios are entered in these cells.

Step 2Enter cost data in purple-shaded cells (Columns C-F). The Calculator is organized into four sections: general information, purchasing, operations & maintenance, and product disposition. Instructions for data entry, specific to each cost category are provided line-by line in Column G. Unless specified, all costs entered into the calculator should be on a per unit basis (i.e., total cost/# of units). Note 1: There are three mandatory data fields: electricity costs (Row 9), number of units (Row 10), and equipment purchase price (Row 16). Users can choose to enter data or omit any other data fields depending on the scope of the analysis and data availability. Note 2: Default values are provided in Column H, where available. For the best results, data specific to your organization should be used whenever possible.

Step 3View results. Scroll down to Rows 96 -98 for the results. Results are presented as total cost per unit over service life; total annualized cost per unit; and total cost for purchase of specified number of units. The Calculator Tool also provides subtotals for each life cycle phase (purchase, operation & maintenance, and end of life management) at the end of each section.

TCO Calculator ToolTotal Cost of OwnershipSimplified Calculator Tool to Incorporate Lifecycle Cost into Electronics Acquisition Decisions

Instructions: This Total Cost of Ownership Calculator Tool allows you to compare the total cost of ownership of alternative products or product life cycle management scenarios. The Tool can calculate and compare up to 4 products or scenarios. For data entry, see line-by-line instructions in Column G. All entries should be per unit cost. Default values are provided where available (see Column H). A * indicates a mandatory data field.

UnitsInstructionsDefault ValuesReferencesGeneral InformationElectricity Rate*$/kWh$0.1020Input actual energy cost to override default value.$0.1020EIA, 2011.Number of Units*unitsPurchased, leased or provided by seat management contract.

Product or Scenario 1Product or Scenario 2Product or Scenario 3Product or Scenario 4product or scenarioCPU+ LCD w/ES, 4yr life, & donationCPU+ LCD, w/ ES, 4yr life; outsource recycleCPU+LCD w/ES; 5 yr life; outsource recycleCPU + CRT, no ES, 4 yr life, outsource recycleOptional: specify product or scenario analyzed in each column.PurchasingInitial CostHardware Acquisition*$/unitFor leases or seat management, can enter the total per unit contract cost on line 16, then skip line 17 & 18. Desktop computer (CPU): $779; Cathode ray tube monitor (CRT) $533; Liquid crystal display (LCD) $383; Notebook computer $1335.Electronics Environmental Benefits Calculator, Version 3.1., June 2012Software Acquisition$/unitOperating system, utility applications, communications software.Service Contracts$/unitIncluding installation, operation, maintenance and disposition, if purchased with hardware or software acquisition.Administrative$/unitIncluding evaluating options, developing bid specs, evaluating proposals, and negotiating contracts.Set Up & Installation$/unitOther$/unitSubtotal Initial Cost$/unit$0.00$0.00$0.00$0.00

Expected Service Life Expected Service Life yearsService life within the organization that made the initial purchase, including internal redeployment of the asset.

Operations & MaintenanceTraining, Maintenance & SupportTraining$/unitInitial and on-going training for end user, including formal classes and informal assistance.Maintenance & Support $/unitContract and staff support to maintain and support PC, including technical support, maintenance contracts and repair costs.

Unit Energy Consumption & Cost Desktop Processing UnitsFor computers and monitors, users can choose to enter custom data on unit power consumption and usage patterns OR enter a unit energy consumption (UEC) default value. Use rows 49, 67 and 94 to enter default values products. Power Consumption in "Active/Idle" ModeWEnter data in rows 34 - 39 to calculate unit energy consumption for desktop computers. For monitors use rows 52-57, for notebooks use rows 70-77. If data is not available, leave all cells blank in the column and enter default value in row 49. See manufacturer specifications; ENERGY STAR qualified unit: 46.2 W; Conventional unit: 68.8 W.ENERGY STAR calculatorin "Sleep/Stand By" ModeWSee manufacturer specifications; ENERGY STAR qualified unit: 2.5 W; Conventional unit: 3.4 W.in "Off" ModeWSee manufacturer specifications; ENERGY STAR qualified unit: 1.5 W; Conventional unit: 1.7 W.% of units turned off at night%In a typical office location, 36% of desktop computers are turned off at night.% power managed%In a typical office location, 8% of desktop computers are power managed.% of time in sleep during workday%In a typical office location, power managed desktop computers spend approximately 38% of workday in sleep/standby mode.Time in "active" or "idle" mode1905.71905.71905.71905.7Time in "sleep" mode0.00.00.00.0Time in "off" mode6854.36854.36854.36854.3UEC, power managed, turned off0.00.00.00.0UEC, power managed, not turned off0.00.00.00.0UEC, not power managed, turned off0.00.00.00.0UEC, not power managed, not turned off0.00.00.00.0Annual Unit Energy Consumption (calculated)kWh/yr0.00.00.00.0OR Default Annual Unit Energy Consumption kWh/yrOnly enter default value if data is NOT entered in rows 34 - 39. Note: You can use default values for some product scenarios & enter data in rows 34 - 39 for other product scenarios.ENERGY STAR qualified unit: 276 kWh/yr; Conventional Unit (not ENERGY STAR qualified): 410 kWh/yr. ENERGY STAR calculator

MonitorsPower Consumption in "Active/Idle" ModeWEnter data in rows 52-57 to calculate unit energy consumption for monitors. If data is not available, leave all cells blank in the column and enter default value in row 67. See manufacturer specifications; ENERGY STAR qualified LCD: 25.2 W; Conventional LCD: 32.2 W; Conventional CRT: 73.4 W.ENERGY STAR calculatorin "Sleep/Stand By" ModeWSee manufacturer specifications; ENERGY STAR qualified LCD: 0.7 W; Conventional LCD: 0.7 W; Conventional CRT: 3.4 W.in "Off" ModeWSee manufacturer specifications; ENERGY STAR qualified LCD: 0.6 W; Conventional LCD: 0.7 W; Conventional CRT: 1 W.% of units turned off at nighthrs/dayIn a typical office location, 18% of monitors are turned off at night.% power managedhrs/dayIn a typical office location, 81% of monitors are power managed.% of time in sleep during workdayhrs/dayIn a typical office location, power managed monitors spend approximately 56% of workday in sleep/standby mode.Time in "active" or "idle" mode1905.71905.71905.71905.7Time in "sleep" mode0.00.00.00.0Time in "off" mode6854.36854.36854.36854.3UEC, power managed, turned off0.00.00.00.0UEC, power managed, not turned off0.00.00.00.0UEC, not power managed, turned off0.00.00.00.0UEC, not power managed, not turned off0.00.00.00.0Annual Unit Energy Consumption (calculated)kWh/yr0.00.00.00.0OR Default Annual Unit Energy Consumption kWh/yrOnly enter default value if data is NOT entered in rows 52-57. Note: default values can be used for some product scenarios & data entered in rows 52-57 for other products scenarios.ENERGY STAR qualified LCD: 58 kWh/yr; Conventional LCD: 73 kWh/yr; Conventional CRT: 436 kWh/yr.

NotebooksPower Consumption in "Active/Idle" ModeWEnter data in rows 70-77 to calculate unit energy consumption for notebooks. If data is not available, leave all cells blank in the column and enter default value in row 94. Note different data entry points are required for the computer and display portions of the notebook. See manufacturer specifications; ENERGY STAR qualified unit: 14.1 W; Conventional unit: 20.9 W.ENERGY STAR calculatorin "Sleep/Stand By" ModeWSee manufacturer specifications; ENERGY STAR qualified unit: 1.4 W; Conventional unit: 1.6 W.in "Off" ModeWSee manufacturer specifications; ENERGY STAR qualified unit: 0.8 W; Conventional unit: 1 W.% of units turned off at night%In a typical office location, 18% of notebook computers are turned off at night.% power managed (computers)%In a typical office location, 8% of notebook computers are power managed.% of time in sleep during workday (computer)%In a typical office location, power managed notebook computers spend approximately 38% of workday in sleep/standby mode.% power managed (displays)%In a typical office location, 81% of notebook displays are power managed.% of time in sleep during workday (display)%In a typical office location, power managed notebook displays spend approximately 56% of workday in sleep/standby mode.Time in "active" or "idle" mode (computer)1905.71905.71905.71905.7Time in "sleep" mode (computer)0.00.00.00.0Time in "off" mode (computer)6854.36854.36854.36854.3UEC, power managed, turned off (computer)0.00.00.00.0UEC, power managed, not turned off (computer)0.00.00.00.0UEC, not power managed, turned off (computer)0.00.00.00.0UEC, not power managed, not turned off (computer)0.00.00.00.0Time in "active" or "idle" mode (display)1905.71905.71905.71905.7Time in "sleep" mode (display)0.00.00.00.0Time in "off" mode (display)6854.36854.36854.36854.3UEC, power managed, turned off (display)0.00.00.00.0UEC, power managed, not turned off (display)0.00.00.00.0UEC, not power managed, turned off (display)0.00.00.00.0UEC, not power managed, not turned off (display)0.00.00.00.0Annual Unit Energy Consumption (calculated)kWh/yr0.00.00.00.0OR Default Annual Unit Energy Consumption kWh/yrOnly enter default value if data is NOT entered in rows 70-77. Note: default values can be used for some product scenarios & data entered in rows 70-77 for other products scenarios.ENERGY STAR qualified notebook 69 kWh/yr; Conventional notebook: 101 kWh/yr.

Total Annual Energy ConsumptionkWh/yr0000Total Annual Electricity Cost$/unit/yr0.000.000.000.00Total Electricity Cost over Expected Service Life$/unit$0.00$0.00$0.00$0.00For initial purchaser only.

Power Management (PM)Purchase additional Software to Manage Unit Power Consumption$/unitEnter cost of software per unit in service. If your organization installed centralized PM software, account for these additional cost savings under unit energy consumption above.Training to Support PM $/unitIT staff and end user time in training (labor rates X hours/unit).End User Support for PM$/unitIT Staff (labor rate X hours/unit).Subtotal Power Management$/unit$0.00$0.00$0.00$0.00

Equipment Upgrade for Internal ReuseUpgrade - Hardware & Software$/unitUpgrade - Staff Resources $/unitIncluding IT and property management staff, if applicable (labor rate(s) X hours/unit).Subtotal Equipment Upgrade$/unit$0.00$0.00$0.00$0.00

Other Operations & MaintenanceOther Operations & Maintenance$/unitUse for any items not covered above.

Subtotal Operations & Maintenance$/unit$0.00$0.00$0.00$0.00

Product Disposition: Trade In, Sale, Transfer (to another Federal Agency), Donation, Recycling or DisposalAdministrative overhead$/unitIncluding inventory management, transfer paperwork, payment processing, finding a charitable organization, or finding & contracting with a recycler. Labor rate(s) X hours/units.Inventory management and forms @ $25/unit ($50/hr X .5 hrs); preparing transfer documents @ $12.50 ($50/hr X.25 hrs). Other costs to include: finding a charitable organization that wants the equipment (20-40 hrs divided by # of units); selecting and contracting with a recycling service provider (5-20 hours divided by # of units); using a GSA Schedule provider (number of hours of staff time divided by # of units.)Gartner, November 2005.Removing equipment from desktop$/unitLabor rate X hours/unit.$8.75/unit ($35/hr X .25 hrs)Gartner, November 2005.Backing up hard drive$/unitLabor rate X hours/unit.$12.50/unit ($50/hr X .25 hrs)Gartner, November 2005.Media sanitization$/unitIncluding any hardware or software purchases and labor (rate X hours/unit). This line item cost may be included in recycling or outsource contracts. $12.50/unit ($50/hr X .25 hrs)Gartner, November 2005.Refurbish or upgrade equipment$/unitInclude hardware and software costs and labor (e.g. new software license and installation). $8.75 for reloading operating system ($35/hr X .25 hrs); $12.50 for testing PC ($50/hr X .25 hrs). $0 when recycling equipment.Gartner, November 2005.Storage $/unitIncluding cost of storage ( $/ft2/month X months in storage) plus labor costs of putting into storage and taking out of storage).Packing$/unitIncluding packing supplies and labor costs (rate X hours/unit).Labor cost @ $4.38/unit ($35/hr X .125 hrs)Gartner, November 2005.Shipping/Transportation$/unitGartner, November 2005.Support to Recipient$/unitIncluding labor (e.g., installation assistance, technical support) and recycling/disposition services. Recycling/Disposal Fees$/unitAll equipment is eventually recycled or disposed of, by your organization or a subsequent user. Include costs to your organization as well as subsequent users. $40/unit, including shippingGartner, November 2005.Outsourcing (any of the above)$/unitCost of contract. Administrative costs pertaining to contract should be included here or in administrative line item above.$48.25/unit, including media sanitization using three-pass DOD Standard 5220-22-M wipe, inventory, reporting, auditing, and refurbishing, but not including shipping.Gartner, November 2005.Revenues $/unitThis line item may include equipment trade-in, if not included in new equipment purchase price; equipment sale; or recycling revenue.Revenues vary depending on equipment age. For 3 year old PC, assume resale value of 5-7 percent of initial cost. For equipment 4+ years, assume zero resale value.Gartner, November 2005.Other$/unitSubtotal Net Disposition Cost$/unit$0.00$0.00$0.00$0.00

Total Cost per Unit Over Service Life$/unit$0.00$0.00$0.00$0.00Total Annualized Cost per Unit$/unit/yrERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!ERROR:#DIV/0!Total Cost for Purchase of:0$0$0$0$0

ReferencesTotal Cost of OwnershipReferencesElectronics Environmental Benefits Calculator, Version 3.1., June 2012.Energy Star, 2012. Saving Calculator for Qualified Office Equipment. http://www.energystar.gov. Downloaded 5/10/2012.Gartner, Inc. 2005. PC Disposal Cost Update 2005: Mitigating Risks. Research ID Number. G00134319.U.S. Energy Information Association, 2011. Electric Power Annual 2010. ES1. Summary Statistics for the United States. Release Date: November 9, 2011. http://www.eia.gov/electricity/annual/