What does the failure cost calculator compare?
The calculator puts two units for the same vehicles side by side for the same number of years: a reliable unit that costs more, and a cheap unit that may fail more often and wear out sooner. For each it adds the day-one cost, the SIM fees, support, and what failures cost: the hardware after the warranty, the technician visit and the hours the vehicle is out of service. It shows the total, the cost per vehicle per month, the cost at 3 and 5 years, the month when the order changes, and the failure rate at which the cheap unit stops being the cheaper one.
What data do you need?
| Input | Where to find it | Tip |
|---|---|---|
| Unit price, installation, setup fee | Supplier or installer quote | Ask for the price with installation and cable, and check whether VAT is in it. |
| SIM and data | Operator plan | Use the plan for the data the unit really sends. Check roaming and overage rules. |
| Failure rate | Your service tickets | Units that failed or needed a visit in a year, divided by units in service. |
| Hardware cost, visit cost, hours lost | Last repair invoices and workshop records | Use what a failure really cost you, not the list price of the part. |
| Warranty and replacement cycle | Contract and datasheet | Read what the warranty covers. Many cover the part only, not the visit. |
| Cost of one vehicle-hour | Operations or finance | Lost revenue or the cost of a stand-in vehicle, per hour. |
How is the cost of ownership calculated?
The calculator works for the whole group of vehicles and adds the lines of each option for the number of months in the term. Money is not discounted.
Devices and replacements
Monthly fees and support
Failures
Break-even month
Failure rate at equal cost
A replacement happens only if the cycle ends before the end of the term. A five-year cycle in a five-year term means no second purchase. The warranty counts from the first installation and is not renewed when units are replaced.
These are accounting identities. No figure comes from a standard or a datasheet: every price, rate and period is yours.
How do you read the results?
- Start with the total, then the day-one cost. The option with the lowest day-one cost is often not the lowest over the term. The over-time tab shows when the order changes.
- Look at the failure share. If most of an option's cost is failures, ask for its field failure data before you sign.
- Test the failure rate. The equal-cost rate tells you how reliable the low-cost unit must be to win. Compare it with the rate you can document.
Common mistakes when comparing tracking units
- Comparing unit prices only. The unit is one line of nine.
- Using a failure rate from a brochure. Use your own service records, or run a pilot on a few vehicles first.
- Leaving out downtime. A visit costs more than the technician when the vehicle cannot work.
- Comparing different terms. Compare all options over the same years.
- Mixing prices with and without VAT. Enter every amount on the same basis.
Assumptions and limits
The results are estimates from the values you enter. The starting values are examples, not prices, failure rates or warranty terms of any product. Failures are spread evenly across the months as an expected value, so a real year can be better or worse. Money is not discounted, and financing, VAT, tax effects and resale value are not included. Replacement units get no new warranty. The break-even search stops at 15 years. Check supplier terms in the signed quote and contract.