Formulas and their limitations
Total = initial cost + other fixed costs + variable cost × uses. The cost per use is this total divided by the number of uses. If a data is missing, the result remains empty: the tool does not turn an unknown expenditure into zero.
When fixed and variable costs favour different scenarios, the theoretical threshold is the difference between fixed costs divided by the difference between variable costs. The tool distinguishes this threshold from the first whole number giving a strictly lower cost. A tie to ten uses means that the strict advantage starts at eleven, under the same assumptions.
The rates are assumed to be constant over the period. Do not allocate a one-time expense in the variable cost if it is already included in the fixed charges. Keep apart from a retraceable bond, an unknown cost, an unestablished future resale and the risks you cannot quantify.
Fictitious example: buying or renting a tool
Procurement A: 180 € delivered and 2 € consumables per use. Rental B: no initial cost and 24 € per use in the case, including transport. For six uses: A = 192 €, i.e. 32 €/use; B = 144 €, i.e. 24 For ten uses: A = 200 € and B = 240 €.
The threshold is 180 Φ (24 − 2), or about 8,18 A becomes cheaper from nine uses if the fee and service remain comparable. The calculation does not show that the purchased item will work throughout this period.
Compare also the terms of rental or borrowing
Fancy example: more expensive purchase, cheaper consumables
Machine A: 60 € and 0,35 € per drink. Machine B : 120 € and 0,20 € per drink. For 600 drinks, without any other cost in the example: A = 270 €; B = 240 €. Costs are equal to 400 drinks; B becomes strictly cheaper from 401. Add maintenance, accessories and energy when they are known.
This comparison does not measure the quality of the drink. For a printer, the advertised performance of a cartridge is a benchmark to distinguish from your actual consumption, especially if the pages and maintenance operations differ.
Prepare the choice of a coffee machine · Understand cost per page · Estimating the electricity of an appliance