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  1. Home
  2. /Calculators
  3. /TCO Calculator
Reviewed by ProPicked Editorial TeamUpdated May 31, 2026How We Review
Free Tool

Software TCO Calculator

Go beyond the sticker price. Calculate the true cost of any SaaS tool by factoring in licensing, setup, training, integrations, and ongoing admin overhead.

How to Calculate Software TCO

1

Enter the tool pricing

Input the monthly price per user and the number of users on your team.

2

Select the contract length

Choose a 1-year, 2-year, or 3-year contract period to project total costs.

3

Add hidden costs

Include setup fees, training costs, and integration expenses that are often overlooked.

4

Factor in admin overhead

Estimate the monthly hours your team spends administering the tool and the hourly rate.

5

Review your TCO breakdown

See the total cost, true per-user cost, and a visual breakdown of where your money goes.

Frequently Asked Questions

TCO is the complete cost of adopting and running a software tool, including the subscription fee, setup, training, integrations, ongoing administration, and any hidden charges. It gives you a much more accurate picture than the sticker price alone.
Because most SaaS vendors quote only the per-user license fee. You still need to pay for onboarding, employee training, data migration, API integrations with your existing stack, and internal admin time to manage the tool. These hidden costs typically add 20-40% on top of the license price.
Negotiate multi-year contracts for discounts, choose tools with built-in integrations to reduce setup costs, invest in proper training upfront to cut ongoing support overhead, and consolidate overlapping tools to eliminate redundant subscriptions.
Yes. Admin overhead is one of the most overlooked costs. Someone on your team spends hours each month managing user accounts, permissions, updates, and troubleshooting. At typical hourly rates, this can add thousands of dollars per year to your real cost.

More Calculators

ROI CalculatorSaaS Total CostAI Cost EstimatorTeam ProductivityAll Calculators

Enter Your Details

$
110 users500

Hidden & Indirect Costs

$
$
$

Admin Overhead

hrs/mo
$

Total Cost of Ownership

Monthly Cost
$390.00
Annual Cost
$4.680
1-Year Total
$4.680
True Cost / User / Mo
$39.00

Hidden costs add 34% on top of your licensing fees. The sticker price of $29.00/user/mo becomes $39.00/user/mo when you include setup, training, integrations, and admin overhead.

Cost Breakdown

Licensing$3.480
Admin Labor$1.200
Licensing: 74%
Admin: 26%