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Cloud TCO Calculator

Compare total cost of ownership across on-premises, single cloud, and multi-cloud over a 3-year horizon. Adjust inputs in real time and see the financial case for cloud migration instantly.

🎚️10 input sliders
📊3-year bar chart
Real-time calculation
📧Free email report

About This Calculator

Cloud migration decisions are often made on incomplete financial data. This calculator models the true total cost of ownership — including hardware amortization, staffing, data center overhead, migration costs, and cloud growth — across three deployment models over three years.

How to use it: Enter your current on-premises costs and your estimated cloud costs using the sliders below. The chart and summary update in real time. The multi-cloud estimate applies an 18% complexity premium over single-cloud costs, reflecting typical operational overhead.

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On-Premises Costs

20 servers

💡 Include all servers in scope for this workload.

1500
20,000 $/server

💡 Amortized over 5 years.

5,000100,000
120,000 $/year

💡 Colocation, power, cooling, floor space.

10,0002,000,000
300,000 $/year

💡 Fully-loaded cost of staff managing this infrastructure.

50,0002,000,000
18 %

💡 Typically 15–22% of hardware cost per year.

530
Estimated Annual On-Prem Cost
$572K
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Cloud Costs

15,000 $/month

💡 VMs, containers, serverless — estimated monthly.

1,000200,000
3,000 $/month

💡 Object, block, and file storage combined.

50050,000
2,000 $/month

💡 Data transfer, CDN, load balancers.

20030,000
200,000 $/year

💡 Cloud engineers, FinOps, security — fully loaded.

50,0001,000,000
15 %

💡 Workload growth, new services. Typically 10–25%.

050
Estimated Annual Cloud Cost (Year 1, excl. migration)
$440K

3-Year TCO Comparison

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On-Premises (3-year)
$1.7M
LOWEST COST
☁️
Single Cloud (3-year)
$1.6M
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Multi-Cloud (3-year)
$1.9M
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Estimated 3-Year Cloud Savings: $78K
Includes a one-time migration cost estimate of $110K in Year 1.

Year-by-Year Breakdown

Year 1Year 2Year 33-Year Total
🏢 On-Premises$572K$572K$572K$1.7M
☁️ Single Cloud$550K$506K$582K$1.6M
🌐 Multi-Cloud$649K$597K$687K$1.9M

* Year 1 cloud cost includes a one-time migration estimate of $110K (25% of Year 1 cloud run cost). Multi-cloud includes an 18% complexity premium over single cloud.

Get Your TCO Report

Receive a formatted report with your cost comparison, savings estimate, and cloud migration recommendation.

How to Interpret Your Results

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Cloud saves money in Year 2+
Year 1 cloud costs are inflated by migration. If cloud wins on 3-year TCO, the payback typically occurs in Year 2. Extend the model to 5 years for a stronger business case.
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On-prem wins at low growth rates
If your cloud growth rate is above 20%, on-prem may look competitive. Consider reserved instances, savings plans, or FinOps practices to reduce cloud growth.
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Multi-cloud premium is real
Multi-cloud adds operational complexity — additional tooling, training, and management overhead. Only choose multi-cloud if vendor lock-in avoidance or regulatory requirements justify the premium.
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This model has limits
This calculator does not model shadow IT, software licensing changes, or productivity gains from cloud-native services. Use it as a starting point for a more detailed business case.