Life Cycle Cost (LCC)

  • Life Cycle Cost (LCC)


  • Definition

Life Cycle Costing (LCC) is an important economic analysis used in the selection of alternatives that impact both pending and future costs. It compares initial investment options and identifies the least cost alternatives for a period of years.

Life-cycle costing shall to the extent relevant cover parts or all of the following costs over the life cycle of a product, service or works:

(a) costs, borne by the contracting authority or other users, such as:

(i) costs relating to acquisition,

(ii) costs of use, such as consumption of energy and other resources,

(iii) maintenance costs,

(iv) end of life costs, such as collection and recycling costs.

(b) costs imputed to environmental externalities linked to the product, service or works during its life cycle, provided their monetary value can be determined and verified; such costs may include the cost of emissions of greenhouse gases and of other pollutant emissions and other climate change miti­gation costs.


  • EU and Life Cycle cost

The European Commission has developed a series of sector specific LCC calculation tools which aim to facilitate the use of LCC amongst public procurers  (


  • News about LCC
  • Case studies