Halving your IT budget: How to calculate the Total Cost of Ownership (TCO) for used equipment

Buying a laptop the wrong choice: Why an expensive new purchase is often the worst option

Year after year, companies invest immense sums in new laptops, computers, and monitors. The hope behind this is that the higher price of new equipment pays off simply because it guarantees maximum reliability, minimal downtime, and the best possible performance. The reality is different. The purchase price is merely the visible tip of the iceberg. The true cost of a device only becomes apparent when you consider all expenses over its entire lifespan – this is where the Total Cost of Ownership (TCO) comes into play. Anyone who consistently includes all expenses related to IT hardware will realize that buying new equipment is often the most expensive option – and that used equipment is the more economically sound choice.

The TCO argument: How refurbished IT reduces costs

Total Cost of Ownership (TCO) describes all costs associated with a device throughout its entire lifespan. This includes not only the purchase price but also expenses for installation, maintenance, energy, repairs, support, upgrades, and ultimately, disposal. TCO analysis eliminates simplistic calculations and ensures complete cost transparency. For business owners, controllers, and procurement professionals, it is therefore the central management tool for controlling and optimizing IT budget planning.

Investment decision: Massively reduce acquisition costs – Immediately reduce the largest TCO item

The biggest factor in calculating the total cost of ownership (TCO) lies in the acquisition costs. A new business laptop costs an average of €1,000 to €1,500. Companies that opt ​​for high-quality refurbished business laptops often pay only half that. Studies and market data confirm that those who use refurbished hardware save up to 50 percent compared to new products – without compromising on quality or performance. The funds freed up can then be used for strategic investments, such as in software, cloud services, or training.

When making IT purchasing decisions, it's always essential to carefully consider the requirements. While specialized teams, such as those in software development or graphic design, benefit from the peak performance of new devices, refurbished IT offers significant advantages for the vast majority of businesses. Especially for office workstations, administrative tasks, or customer service, older models are often more than sufficient, as the hardware requirements are comparatively low and stable. Monitors and docking stations are prime examples: they are durable, technologically advanced, and offer an excellent cost-benefit ratio when purchased used.

In high-wear environments, such as workshops, it also makes economic sense to opt for devices with low purchase costs without compromising on functionality. Thanks to the increasing migration of central applications to the cloud, hardware requirements are becoming less important – the devices primarily serve as an access point to the digital workplace.

High stability: More durable than the competition – longer service life, less frequent procurement

A common misconception is that used IT equipment is unreliable or has a short lifespan. The opposite is true. Most defects in new devices occur within the first two years. Refurbished laptops and PCs, which have already gone through this cycle and been professionally tested, have a lower failure rate than many new devices.

The only component to which this doesn't apply is the battery – it wears out over time and its capacity decreases. However, reputable manufacturers guarantee a battery capacity of at least 80 percent and only use devices that have passed rigorous functional tests.

The average lifespan of a modern laptop is now up to eight years. If a professional refurbishment provider refurbishes a device after four years, it can be used for another four years reliably. Market value depreciation is highest in the first three years, after which the residual value remains stable. This means that companies benefit not only from lower acquisition costs, but also from a longer lifespan and less frequent replacements.

The use of refurbished laptops and computers is not a new phenomenon, but rather established practice. Companies have long relied on providing new employees with cleaned and reconfigured devices. It is simply more cost-effective to reuse existing, still-functioning hardware instead of buying new products. Professional refurbishers are now extending this concept to external devices.

Eliminate risk: This is how the TCO becomes predictable – warranty and service minimize downtime costs

Another argument for refurbished IT is active risk minimization. Modern providers not only deliver tested hardware, but also offer comprehensive warranties and professional support. This makes the financial risk calculable and the total cost of ownership (TCO) predictable.

Each device undergoes a multi-stage refurbishment process: secure data erasure, functional testing, replacement of defective components, and cleaning. Only after passing this test is the hardware added to the product range. Many vendors offer a minimum twelve-month warranty, often with the option to extend it for up to three years. In the event of a service issue, personal contacts are available to guarantee fast assistance and straightforward processing.

Integration into existing IT infrastructures is also seamless: Pre-configured devices can be integrated via MDM enrollment. This not only reduces downtime but also the hidden costs of maintenance and support. Companies benefit from a predictable IT landscape – without unpleasant surprises.

No more installments: Calculate the TCO of used equipment – ​​Introducing the Excel TCO calculator

Theory is most convincing when it can be backed up with numbers. That's why we provide you with a field-tested Excel TCO calculator. With just a few entries, you can calculate the TCO of used computers and thus obtain a reliable cost comparison – including all relevant factors: acquisition, operation, maintenance, energy, support, resale value, and downtime costs. The formula is simple:

Total operating costs = Acquisition costs + Operating costs – Resale value

This tool is ideal for internal discussions in purchasing, controlling, or with management. It makes total cost of ownership (TCO) transparent, identifies potential savings, and provides a neutral basis for decision-making. Those who consistently use TCO comparisons will recognize that refurbished IT is the smartest and most economical way to procure equipment.

Try out the calculator and see for yourself how much your company can save with refurbished laptops and computers. The download is free and without obligation. Download the TCO calculator now and optimize your IT budget sustainably:

TCO calculator for used equipment – ​​free download