How to use the cost per use calculator
- Enter the price you paid and the number of times you expect to use the item.
- Add other costs over its life, such as repairs, cleaning or accessories, and what you could sell it for later if anything.
- Optionally enter what the alternative costs each time, such as a rental fee or a single ticket.
- Read the cost per use, and the number of uses at which owning beats the alternative. The table shows the cost per use at other use counts.
Formula
Net cost = price + other costs - resale value
Cost per use = net cost / number of uses
Uses to beat an alternative = net cost / cost of the alternative each time, rounded up
The cost per use falls as the number of uses grows, because the same net cost is shared by more uses.
A $240 jacket worn 60 times
With no other costs and no resale value the net cost is $240. Over 60 wears that is $240 / 60 = $4.00 per wear. At 10 wears it would be $24.00, and at 120 wears it would be $2.00.
If renting an equivalent jacket costs $12 each time, owning wins after $240 / $12 = 20 uses. At 60 uses the rental alternative would have cost $720, so owning saves $480.
A way to compare things that are used differently
Price alone hides how much you use something. A cheap item you use twice can cost more per use than an expensive one you use every week. Cost per use puts them on the same footing, and it makes the value of durable items easier to see.
It also works for experiences that you repeat, such as a gym month or a pass. For a break-even check on a membership, see the membership break-even calculator.
Be honest about the number of uses
The result is only as good as your guess for the number of uses. Many purchases are used less than planned. Try a cautious count and see whether the cost per use still looks reasonable.
You can also look at the price in terms of your work with the cost in work hours calculator, or compare billing options for a service with the annual vs monthly plan calculator.
Assumptions and limits
- Every use counts the same, and the number of uses is your estimate.
- Resale value is what you expect to get, not a guaranteed price.
- The value you place on owning the item and the interest you could have earned are not modeled.
- Uses must be a whole number of one or more.
Frequently asked questions
How do you calculate cost per use?
Divide the net cost by the number of times you use the item. If you paid $240 and use it 60 times, the cost per use is $4.00.
What should count as part of the cost?
Include the purchase price and anything you spend to keep using it, such as repairs and accessories. Subtract what you could sell it for. Enter those on the page and the net cost updates.
How many uses does it take for owning to beat renting?
Divide the net cost by the cost of one rental. With a $240 net cost and a $12 rental, it takes 20 uses.
Is a lower cost per use always better?
Not always. A low cost per use is only real if you actually reach the number of uses. An item you rarely use is still expensive for each use, however durable it is.