Whole Life Costing (also known as Life Cycle Costing) takes account of the total cost of a product or service over its life from determining the need for it through to its eventual disposal and replacement.

For example, for equipment it includes the costs of maintaining and operating the product, as well as the outright purchase, hire or lease price; the cost of consumables, utilities, training; and the cost of disposal or potential sale value at the end of its life. In some cases the elements, which are difficult to calculate (life expectancy, accuracy, ease of use, speed etc), are of paramount importance in making the final choice.

For services, costs such as full budget costs, overtime, staff training, perhaps redundancy or re-location (should the unit close at some future time) need to be considered when evaluating a service contract and comparing in-house costs against those of buying in the service from an external provider.