How to Calculate an LCC Spreadsheet

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Life-cycle cost analysis helps people make purchasing decisions.
Life-cycle cost analysis helps people make purchasing decisions. (Image: calculator chart image by max blain from Fotolia.com)

Life-cycle cost (LCC) is the total cost of owning a product. LCC includes the costs of design, construction and purchase, operation, maintenance, renewal, replacement or disposal. Buyers use LCC to make a decision, based on all costs, related to the purchase of a product. Costs that people will incur after purchasing a product becomes an important part of the decision.

Start the Excel spreadsheet program. Click "File," then "New" to create a blank worksheet. Type the row labels "Product price," "Delivery," "Installation," "Auxiliary items," "Insurance," "Property tax," "Scheduled inspections," "Consumable items," "Energy expenses" and "Salvage value" into cells "A2," "A3," "A4," "A5," "A6," "A7," "A8," "A9," "A10" and "A11," respectively. Type "Total" into cell "A12."

Fill in cost values into the cells "B2," "B3," "B4," "B5," "B6," "B7," "B8," "B9" and "B10," according the row labels.

Type "=B2*0.2" into cell "B11." Press the "Enter" key. Type "=SUM(B2:B11)" into cell "B12." Press the "Enter" key to calculate LCC value of the product..

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