15-year TCO worksheet — industrial pump
Lifecycle cost calculation for an industrial pump procurement decision. Fill in the bracketed cells; total is computed at the bottom.
Inputs — operating profile
| Parameter | Value | Notes |
|---|---|---|
| Rated shaft power | _____ kW | At duty point, from pump curve |
| Pump efficiency at duty | _____ % | Read from manufacturer’s η-Q curve |
| Driver efficiency | 95% | Typical IE3 motor at full load |
| Annual operating hours | _____ h | Realistic — not “8.760 if asked” |
| Asset life (years) | 15 | Industry standard for centrifugal |
| Electricity tariff | R$ 0,65 / kWh | BR industrial 2026 average — use site-specific |
| Annual tariff escalation | 4% | Brazilian industrial tariff inflation 2020-2026 |
| Discount rate (NPV) | 8% | Use buyer’s WACC; default 8% reasonable |
Inputs — direct costs
| Cost | Value | Notes |
|---|---|---|
| Equipment CAPEX | R$ _____ | FCA factory |
| Freight to site | R$ _____ | Per Incoterms |
| Installation cost | R$ _____ | Civil + mechanical + electrical |
| Vendor installation supervision | R$ _____ | Optional but recommended |
| Commissioning cost | R$ _____ | Operating fluids, instruments, training |
| Total CAPEX | R$ _____ | Sum |
Inputs — operating costs
Energy (dominant component)
Annual electricity (kWh)
= (shaft kW / pump η) × (1 / driver η) × annual hours
| Component | Value |
|---|---|
| Shaft kW / pump η | _____ |
| ÷ driver η | _____ |
| × annual hours | _____ |
| Annual electricity (kWh) | _____ |
| × tariff (year 1) | R$ _____ |
| Year-1 energy cost | R$ _____ |
For NPV with 4% tariff escalation and 8% discount rate over 15 years, the multiplier on year-1 energy cost is approximately 11.7×.
| Lifecycle energy cost (year-1 × 11.7) | R$ _____ |
Maintenance
| Component | Value | |
|---|---|---|
| Annual scheduled maintenance | R$ _____ | Typical: 3-5% of CAPEX |
| Annual spare-parts consumption | R$ _____ | Wear-part replenishment |
| × 15 years | × 15 | |
| Lifecycle maintenance | R$ _____ |
NPV adjustment: with 8% discount rate, the 15-year multiplier on annual maintenance is approximately 8.6× annual cost.
| Lifecycle maintenance NPV (annual × 8.6) | R$ _____ |
Unplanned downtime risk
| Component | Value |
|---|---|
| Probability of unplanned outage event over 15 years | _____ % |
| Expected duration of one event (days) | _____ days |
| Cost of process downtime per day | R$ _____ |
| Expected lifecycle downtime cost | R$ _____ |
For non-redundant critical service: typical 1-2 events expected over 15 years. Reduce by 50% if redundant pump installed.
For pumps with > 16-week parts lead time and no on-site spare: increase by 100% (one event takes 2-4× longer to recover).
Disposal
| Component | Value |
|---|---|
| End-of-life decommissioning + scrap value | R$ _____ |
NPV at year 15 with 8% discount: multiply by 0.32.
| Disposal NPV | R$ _____ |
TCO total
| Component | NPV (R$) |
|---|---|
| CAPEX | _____ |
| Energy lifecycle | _____ |
| Maintenance lifecycle | _____ |
| Unplanned downtime risk | _____ |
| Disposal | _____ |
| Total TCO | _____ |
Comparison across bidders
Run the worksheet for each bidder under evaluation. The bidder with
lowest TCO is not always the winner — the scoring matrix
(evaluation-matrix.md) blends TCO with strategic factors like spare-parts
ecosystem and references.
But TCO is the single largest input to the energy-cost-weighted criterion in the matrix, and it deserves its own worksheet for transparency.
Sanity checks
After computing TCO for each bidder, verify:
- Energy cost > 50% of TCO (typical for continuously-operated pumps)
- CAPEX < 15% of TCO (typical for industrial process)
- Disposal < 1% of TCO (typical)
- Differences in TCO between bidders are dominated by the largest components — usually energy
If any of these is violated, re-check inputs. A common error is using nameplate motor power instead of shaft power at duty (overestimates energy by 20-30%).