What this calculator does
The tool compares expected repair expenditure over a period with replacement-and-installation cost less stated annual operating savings. It is a transparent first-pass comparison rather than a full lifecycle-cost model.
When to use it
Use it to frame an asset discussion when repeat repairs are consuming cost or risk. It helps reveal which assumptions need evidence before a capital request is advanced.
Inputs and formula
The repair path is repair cost × annual repair frequency × years. The replacement path is replacement cost − annual savings × years. Difference = repair-path cost − replacement-path cost
Worked example and interpretation
At 4,500 per repair, two repairs/year for five years costs 45,000. A replacement costing 18,000 with 1,200 annual savings has a five-year simple cost of 12,000, favoring replacement on these inputs.
Practical notes and limitations
The model does not discount cash flows or include residual value, taxes, financing, outage installation cost, safety risk, capacity constraint, or failure uncertainty unless you fold them into inputs. A material capital decision needs a reviewed lifecycle-cost analysis.