what is lifetime cost 
lifetime cost is an estimate of how much an item such as a car a home or a piece of industrial machinery will cost to own over the expected useful life of that item it also includes cost of purchasing the item in the first place understanding and calculating lifetime costbusinesses will frequently calculate lifetime costs before making large expenditures upgrades or renovations for example if they are buying a new piece of machinery they will not only consider what it costs to buy initially but also what it s likely to cost to operate and maintain over its expected lifetime lifetime cost may also be referred to as whole life cost life cycle cost or total cost of ownership individual consumers can also find it useful to calculate the lifetime cost before buying a home boat automobile or other expensive item besides the initial purchase price lifetime costs can include as a simple example if a person bought a fur coat the lifetime cost would include the purchase price as well as the expense of cleaning storing insuring and otherwise maintaining the coat often the lifetime cost of an item may be far greater than the initial purchase price many boat owners for example will recognize the truth of the old saying that the definition of a boat is a hole in the water into which you throw money in addition to lifetime cost it can also be useful to look at the opportunity cost of a particular expenditure that refers to the potential benefits of spending the same amount of money in a different manner such as investing it 