How it is calculated
| Monthly run cost | fee + egress GB × price per GB + staff hours × rate + power and space |
|---|---|
| One-off | setup + first hardware purchase |
| Refresh | hardware purchase repeated every refresh cycle within the period |
| Total | one-off + monthly × months + refreshes |
The method, including what to put in each line and a sensitivity analysis, is in the hosting TCO guide.
Assumptions and limits
- No discounting or inflation; for long periods, apply your cost of capital separately.
- On-premises hardware has resale value at the end of the period that this tool ignores.
- Staff time is the line most often left out, and often the largest.
How we test this tool
Unit tests check that totals equal the last point of the cumulative series, and that a 24-month refresh cycle inside 36 months adds exactly one extra hardware purchase.
Frequently asked questions
Why include staff hours?
Because the cheapest invoice often needs the most engineering time. At any realistic hourly rate, a few hours a month can outweigh the difference between two hosting fees.
Related
Inputs stay in your browser. Tool maths last reviewed ; the unit tests that pin these formulas are listed in the evidence hub.