Maintenance & Reliability worked example

Equipment Lifecycle Cost with acquisition cost of 1,200,000 $: a worked example

What does the result look like when acquisition cost reaches 1,200,000 $? The full calculation is worked below with real intermediate numbers. Use it when comparing asset options or showing that a cheaper purchase price may still create a more expensive life-cycle burden.

The inputs for this scenario

  • Acquisition cost: 1,200,000 $ (raised for this scenario; the documented default is 480,000)
  • Installation and commissioning cost: 85,000 $ (unchanged)
  • Lifetime maintenance cost: 240,000 $ (unchanged)
  • Lifetime energy and disposal cost: 175,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Equipment lifecycle cost = acquisition cost + installation and commissioning cost + lifetime maintenance cost + lifetime energy and disposal cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,700,000 $ for equipment lifecycle cost, the number this scenario is built around.
  • At this operating point the engine returns 1,200,000 $ for acquisition cost.
  • At this operating point the engine returns 85,000 $ for installation cost.
  • At this operating point the engine returns 415,000 $ for life maintenance, energy, and disposal.

How this compares with the baseline

  • Against the tool's baseline example, where acquisition cost sits at 480,000 $ and the headline result is 980,000 $, this scenario comes in 73.47% above the baseline at 1,700,000 $.
  • A figure at this level is achievable when acquisition cost is genuinely sustained, not just peaked for a shift. It is a static lifetime total with no discounting, so it does not account for the time value of money or inflation across the asset's life.

Results at a glance

  • Equipment Lifecycle Cost: 1,700,000 $ (headline result)
  • Acquisition Cost: 1,200,000 $
  • Installation Cost: 85,000 $
  • Life Maintenance, Energy, and Disposal: 415,000 $

Run it with your numbers

  • Every input above is editable in the live Equipment Lifecycle Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.