DEFINITION of 'Turnkey Cost'
Costs and expenditures that must be covered before a product or service is ready to be sold and used. A turnkey cost may be a direct cost, such as materials, or an indirect cost, such as administrative expenses and product engineering. Turnkey costs are often quoted by manufacturers and real estate developers to describe the costs required to complete a particular project.
BREAKING DOWN 'Turnkey Cost'
The word turnkey refers to an item that is ready for use as soon as it is handed to the consumer. The turnkey cost is the total cost to get the product to this finished and usable point. For example, if you are building a new home, there are many separate costs beyond the building itself. This could include landscaping, furnishing, insurance, taxes, cleaning, inspection, and many more. If you want to know the total cost before you can start living in that home, you would be looking for the turnkey cost.