Glossary · IT Procurement
Total Cost of Ownership
Updated June 20, 2026 · Reviewed by Shorim Haniffanshoib, Head of Editorial — IT Strategy & Enterprise
The total cost of owning an asset across its useful life — not just the upfront purchase price. For corporate laptops, a 3-year TCO includes purchase price + repair costs + IT support cost + refresh cycle + depreciation + disposal. A worked example for 50 laptops over 3 years: (a) buy path — 50 units × IDR 12M = IDR 600M CapEx + maintenance/parts IDR 60M/year × 3 = IDR 180M + downtime cost (avg 2 days/unit/year × IDR 300K) ≈ IDR 90M, total ±IDR 870M before counting IT support payroll; (b) DaaS path — IDR 360M/year × 3 = IDR 1.08B but already includes support, unit replacement, end-of-contract refresh, and zero internal IT overhead — the total flows through as OpEx. Comparing rental vs purchase TCO often changes the procurement decision — see the laptop rental price table for the monthly rates that feed the OpEx side. Renting looks 5–15% more expensive on raw numbers, but carries 0% hidden cost. Many finance directors underestimate hidden costs when buying office laptops.
TCO (Total Cost of Ownership) frequently appears in B2B IT procurement contexts: The total cost of owning an asset across its useful life — not just the upfront purchase price.
| Domain | Finance & Tax |
|---|---|
| Full form | Total Cost of Ownership |
| Part of | Arental IT Procurement & B2B Laptop Rental Glossary |
| Last reviewed | 2026-06-20 |
Related
How does TCO affect the laptop rental cost we pay Arental?
TCO (Total Cost of Ownership) is directly relevant to a B2B laptop rental engagement, so it is worth confirming up front during the quote and contract stage. In short: The total cost of owning an asset across its useful life — not just the upfront purchase price. Discuss the specifics with the Arental team so the right clauses and procedures are built into your rental contract.
Answered by Shorim Haniffanshoib, Head of Editorial — IT Strategy & Enterprise
The Arental team can help you evaluate vendors, calculate TCO, or review rental contracts. Free initial consultation, no commitment.
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