Lifetime Cost

Filed Under: ,
Dictionary Says

Definition of 'Lifetime Cost'


A total of all other costs relating to a good over its expected lifetime in addition to the amount paid to acquire it. These extra expenses, which usually cover costs involved with maintaining the good, often when added together over time, can be greater than the original purchase price of the underlying good.

Investopedia Says

Investopedia explains 'Lifetime Cost'


For example, outgoing cash flows do not stop once you buy a car. Consider the costs involved with weekly gas fill ups, periodic oil changes and other types of maintenance, such as roadside assistance, car washes and insurance payments. One can easily spend considerably more than the car's purchase value.

Consumers should be wise to examine the impact of incurring the annual portion of a good's lifetime cost on their budget before committing to a purchase.

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center