Lifetime Value Analysis
We calculate the true economic value of each product over its lifetime, revealing that durable products often cost less in the long run despite higher upfront prices.
Purchase Price ($)
The typical retail cost of the product at time of assessment. We use average market prices from reputable retailers to ensure accuracy.
Uses Per Year
Estimated number of times the product is used annually based on typical usage patterns. For example, a toothbrush = 730 uses/year (2x daily), a water bottle = 365 uses/year (daily), clothing = 52 uses/year (weekly wear).
Lifetime Uses
Total uses over the product's lifespan, calculated as: Uses Per Year × Expected Lifetime (years). This reveals the true utility you get from your purchase.
Cost Per Use
The amortized cost for each use, calculated as: Purchase Price ÷ Lifetime Uses. This reveals the true value of durable products. A cast iron skillet at $50 with 15,600 lifetime uses costs only $0.003 per use.
Cost Per Year
Annual cost of ownership, calculated as: Purchase Price ÷ Expected Lifetime (years). Useful for budgeting and comparing alternatives. That same $50 skillet lasting 100 years costs only $0.50 per year.
Why This Matters
A $50 cast iron skillet that lasts 100 years costs only $0.50/year and $0.003 per use, while a $10 non-stick pan that lasts 2 years costs $5/year and $0.03 per use. The "expensive" option is actually 10x cheaper over time.