Calculate the total cost of ownership of your software
Enter every cost item, from licences to internal management, and instantly see your total TCO, the breakdown and the cost per user and per month.
Indicative, based on your own input.
What is a TCO calculation?
The Total Cost of Ownership (TCO) is the sum of all costs a system carries over its entire lifecycle, not just the purchase. The concept was introduced in 1987 by research firm Gartner to make the hidden costs of IT visible. Research consistently shows that the purchase price (licences) is often only 20 to 40% of the real costs; the rest lies in implementation, management, integrations and ongoing development.
A TCO calculation makes these costs explicit and comparable over a fixed period (usually 3 to 5 years), so you make a well-founded choice instead of one based on the quoted price alone.
Purchase & licences
One-off purchase or ongoing subscription costs per user, including modules and user growth.
Implementation
Setup, data migration, integrations, customisation and training: often the largest one-off item.
Management & support
Annual maintenance, vendor support and the internal hours needed to keep the system running.
Infrastructure
Hosting, cloud, storage and any hardware over the entire period.
Ongoing development
Upgrades, new functionality and changes as your processes evolve.
Period & scale
The period (3-5 years) and number of users determine how one-off and recurring costs relate.
A reliable TCO accounts for all six categories and the period. Forget internal management or ongoing development and the real TCO is typically 30 to 50% higher than the quote.