Calculator

CAPEX Justification Checklist & Total Cost of Ownership (TCO) Calculator

Interactive CAPEX submission form that captures cost inputs, TCO drivers, sample justifications, and an approval checklist. Saves a structured record that can be used for approvals, tracking, and later analysis.

Interactive Tool

CAPEX Justification & Total Cost of Ownership (TCO) Calculator

Purpose

Use this form to capture the numbers and narrative needed to compare repair vs replace decisions and justify capital spending. Enter the best estimates you have — the form saves a structured record for approvals and later review.

How to think about TCO

Simple TCO (over expected life) = purchase cost + installation + (annual maintenance × life) + (annual energy × life) + downtime cost over life - salvage value.

Downtime cost over life = (estimated annual downtime hours × cost per downtime hour) × expected life (years).

Simple payback (years) = incremental cost ÷ annual cash savings.

Quick example

If a new fryer costs $8,000 (purchase + install), annual maintenance $200, energy savings $300/year, expected life 8 years, and it reduces downtime cost by $400/year, then:
TCO_new = 8,000 + (200×8) - (0 salvage) + (energy - saved energy negative) etc. Use the worksheet fields below to capture your numbers.

Short name for the project or piece of equipment.
Which site or unit will this affect.
Preferred vendor or quotes received.
Total equipment price including taxes. Use a whole number in dollars.
Electrical, plumbing, commissioning, contractor fees.
Typical useful life for TCO calculations (years).
Estimated resale or scrap value at end of useful life.
Enter annual maintenance cost for the proposed equipment. If comparing, use the expected cost after purchase.
If replacing, enter existing equipment annual energy cost.
Enter expected annual energy cost for the new equipment. For energy-saving projects this should be lower.
Average hours per year current equipment is offline or causes lost production.
Expected downtime hours after purchase (can be 0 for reliable equipment).
Estimate lost sales, labor overruns, spoilage, or other costs per hour of downtime.
Additional revenue or direct annual cost-savings the new equipment will generate (e.g., higher throughput, lower waste).
If you prefer, paste the TCO you calculated offline. Guidance: purchase + installation + (annual_maintenance × life) + (annual_energy_new × life) + (downtime_cost_new × life) - salvage. Not required.
If known, enter expected payback. Formula: incremental cost ÷ annual cash savings.
Rough annual ROI percent. Optional.
Explain why this purchase is needed. Tip: Briefly state the problem, the options considered (repair vs replace), key numbers (TCO, payback), operational impact, and recommended approver action. Example: 'Current fryer breaks twice monthly causing ~8 hrs lost labor per month and $X/month in lost sales. Repair cost last year $Y. New fryer TCO over 8 years = $Z, expected payback 2.4 years. Recommend replace now to reduce downtime and labor.'
Check items that are completed.
Who should review & approve? e.g., Site Manager -> Regional Manager -> Finance -> Exec
Paste links to quotes, photos, or spreadsheets. (File upload not available in this form.)
Check yes to confirm.
You can explore this tool now. Sign in or create an account to save your responses and return to them later.
Sign In to Save Create an Account
Make this tool part of your work

Save a personal copy, bring it to your team, or tailor the questions and workflow to fit what you are hungry to improve.

Member customization and team collaboration are coming soon.
Discuss Ask the Librarian

Discussion

Comments and conversation will live here.