Pocketify
- Pocketify
- Free tools
- Cost per use calculator
Cost per use calculator
What a purchase really costs each time you use it, and which of two options is better value.
Short answer: cost per use = (price + running costs − resale value) ÷ number of uses. Estimate uses as times per week × weeks you will own it. A higher price can still be the better buy if you use it much more often or it lasts much longer.
Why cost per use beats the price tag
The price tells you what leaves your account today. Cost per use tells you what you pay for each time the thing is useful. It turns "the expensive boots" or "the cheap blender" into a fair comparison, and it is honest about the purchases that end up unused.
Good guesses for the number of uses
- Be conservative. Most people overestimate how often they will use a new purchase. Halve your first guess if it is a new hobby.
- Count how long it lasts, not how long you hope it lasts. Warranties and reviews are a good guide.
- Include running costs: ink, fuel, servicing, subscriptions, cleaning.
Checking a membership? Add it to the subscription cost calculator too, so it shows up in your yearly total.
Frequently asked questions
How do you calculate cost per use?
Cost per use is the total cost of owning something divided by the number of times you use it. Total cost is the price plus running costs, minus what you could sell it for at the end.
Is a cheaper item always better value?
No. A cheap item that wears out or stays in the cupboard can cost more per use than a dearer one you use every day for years. Cost per use makes that visible.
What is a good cost per use?
There is no single number. Compare it with the alternative: renting, a cheaper model, a gym class, or not buying at all. The option with the lower cost per use, that you will really use, wins.
Does cost per use work for subscriptions?
Yes. Use the monthly price and how many times a month you use it. A gym membership you visit twice a month can cost more per visit than paying for single classes.