Evaluate · Calculator 03

What could this purchase really cost you?

Bring together the purchase price, finance, ownership costs, resale value and foregone growth.

1 Enter your figures2 Review assumptions3 Explore the result

Your figures

1. Describe the purchasePayment methodPurchase priceUpfront fees

2. Include ownership and resaleMonthly ownership costsMaintenance, insurance, subscriptions and other incremental costs

Time owned

Net resale valueAfter selling costsExpected uses each month

3. Review the assumptions

Alternative annual return

Inflation

Your entries remain in this tab and are cleared when the tab closes.

Estimated economic cost

£19,449£17,190 in today’s purchasing power over 5 years.

What this result means

The purchase is estimated to use £19,449 of wealth by the end of the period. This is broader than cash spent: it includes the growth your payments could have earned elsewhere, then subtracts the resale proceeds.

Net cash cost is £15,200. It adds the purchase or finance payments, ownership costs and any finance balance still due when you sell, then subtracts the net resale value.

£12,000purchase and finance+£7,200ownership costs−£4,000resale proceeds=£15,200net cash cost

Purchase and finance£12,000Ownership£7,200Foregone growth£4,249

Net cash cost£15,200

Monthly equivalent£287

Cost per use£36

Assumptions used

Ownership costs occur evenly through the holding period.
The resale figure is received at the end and is stated after selling costs.
Foregone growth applies your return assumption to timed cash outflows.
Tax and product-specific finance charges are included only if entered.

Economic cost combines cash spent with the value that money could have had elsewhere. It is an illustration, not a judgement about whether the purchase is worthwhile.