A-Z Popular Blog Encyclopedia Search »
Business Costs
 Advertisements
Business Costs
Business Expenses

20 Examples of Lifetime Cost

 , updated on December 25, 2022
Lifetime costs are the total costs of a product, service or asset over its useful life including recurring expenditures related to the item. The following are common components of lifetime costs followed by a detailed example.
Insurance
Cleaning Fees
Closing Costs
Consumables e.g. ink for a printer
Costs To Sell Item When You Are Done With It / End Lease
Initial Costs
Installments
Interest Expenses Related to Purchase
Membership Fees
Operational Costs
Parts
Purchase Cost
Renovations
Service Fees
Shipping Fees
Storage
Support Costs
Upgrades
Usage Charges
Utilities / Energy Consumption

Example

If you purchase a car your lifetime cost for the vehicle may include down payment, monthly payments, interest expense, license & registration, parking, gas, service appointments, repairs, maintenance expenses, cleaning expenses, insurance and any costs required to dispose of the vehicle at its end-of-life. If you are comparing this to the cost of an alternative form of transport or lifestyle, all of these costs can be considered. Likewise, if you are comparing two vehicles recurring costs such as gas can have a significant impact on lifetime cost and this can be considered in decision making.

Notes

Lifetime costs are often represented as a single number discounted to present value.
Overview: Lifetime Cost
TypeBusiness Cost
Definition (1)The total cost of a product, service or asset over its useful life including the cost to operate, use, maintain and dispose of the item.
Definition (2)The total cost of a product, service or asset over its useful life including the sum of all recurring payments discounted to their present value.
ExampleThe lifetime costs of a car lease including down payment, all monthly payments, insurance, fuel, maintenance, parking and returning costs at the end of a lease such as paying for minor damages.
ValueLifetime costs can be used to compare alternatives such as the cost of owning a car versus living closer to work and walking.
Related ConceptsTotal Cost Of Ownership

Business Costs

This is the complete list of articles we have written about business costs.
Activity Cost
Business Equipment
Capex
Capital Improvement
Cost Of Living
Expenses
CAC
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Operating Cost
Operating Expenses
Opex
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Shrinkage
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Opportunity Cost
Variable Costs
Prospective Cost
Switching Costs
If you enjoyed this page, please consider bookmarking Simplicable.
 

Fixed Costs

Business expenditures that aren't affected by business volumes.

Variable Costs

Business expenditures that change as you produce more.

Overhead Costs

Business expenditures that can't be directly related to revenue.

Operating Expenses

An a-z list of common operating expenses.

Overhead Cost Examples

The definition of overhead cost with examples.

Business Disadvantages

A list of possible disadvantages of owning a business.

Sunk Costs Examples

An overview of sunk costs with examples.

Business Results

A list of common types of business result.

Business Expenses

A list of common types of business expenses.

Business Travel

Common purposes for business travel.

Supplies

The definition of supplies with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map