How to calculate the life cycle cost of your air compressor system？

When it is necessary to replace an existing air compressor or purchase an air compressor for a new facility or application, several factors should be considered before purchasing. In addition to space requirements, flow, pressure, and other application-based parameters, a major factor that should be considered is the total life cycle cost! When purchasing or upgrading the system, you should try to find a balance between the initial purchase cost and the long-term related energy and maintenance costs. Of course, the final decision depends on the unique needs and requirements of your company.

What is the life cycle cost of an air compressor?

Life cycle cost analysis is a comparison tool used to compare different systems and products; in order to provide guidance on the potential total investment amount for each option. LCC has certain limitations because it cannot take into account unexpected costs or business growth, etc., but it is a very useful method to establish a baseline in order to make an informed decision on which air compressor installation is most suitable for you Company investment.

How to calculate the total life cycle cost of a compressor?

Life cycle cost = (initial investment) + (life cycle maintenance cost) + (life cycle energy cost)

When calculating the total life cycle cost of a new air compressor, each of these three factors (initial capital expenditures, maintenance costs, and operating costs) plays an important role.

1. The total purchase price. The total purchase price is usually only a small part of the entire life cycle cost. It is important to note that just because the purchase price of an air compressor may be much lower does not mean that it will cost less during its lifetime. If the costs associated with maintenance, and energy use are lower in the long run, the higher initial costs may benefit you.

2. Maintenance costs. Maintenance costs can vary greatly. They include not only the labor and parts needed to keep the air compressor running, but also the required maintenance schedule. You should also consider whether it will be maintained in-house or whether it will be outsourced to a local compressed air supplier. Different manufacturers have different recommended maintenance intervals and component lifetimes.

3. Energy efficiency. The energy efficiency of air compressors can save tens of thousands of dollars in electricity costs every year.