The Total Cost of Ownership (TCO) is a financial metric that evaluates the total cost of using a product or service. TCO determines an asset's direct and indirect expenses over its entire lifespan, enabling companies to generate a precise cost-ROI ratio.
In addition to the upfront purchase price, TCO also accounts for the following costs: setup, maintenance, downtime during installation, necessary staff training, licensing, potential upgrades, and EOL disposal.