What's the TCO Calculator?

By Max from AzureGuru
Published in AZ-900 Training
January 17, 2021
1 min read
*This article could be a summary of content for learning purposes. For more information and knowledge, read the original articles in the References section.

The TCO Calculator helps you estimate the cost savings of operating your solution on Azure over time, instead of in your on-premises datacenter.

The term total cost of ownership is commonly used in finance. It can be hard to see all the hidden costs related to operating a technology capability on-premises. Software licenses and hardware are additional costs.

With the TCO Calculator, you enter the details of your on-premises workloads. Then you review the suggested industry average cost (which you can adjust) for related operational costs. These costs include electricity, network maintenance, and IT labor. You’re then presented with a side-by-side report. Using the report, you can compare those costs with the same workloads running on Azure.

The following image shows one example.

Total Cost of Ownership

Working with the TCO Calculator involves three steps:

  • Define your workloads.
  • Adjust assumptions.
  • View the report.


  • Compare costs by using the Total Cost of Ownership Calculator



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