Estimating all the direct and indirect costs associated with your furniture over its’ lifetime can be complicated. The following is a simplified, easy to understand analysis of upholstered contract seating estimation.

Total Cost of Ownership (TCO) = the initial capital outlay + life-time operating costs + life-time maintenance costs + disposal cost.

When expressed as a cost per year, this allows an instant, easy and accurate comparative of the true value for money.

TCO per year =TCO/the lifespan of the asset.