Personal Finance

Cost Per Use

The total cost of an item divided by how many times you use it, revealing the true value of purchases.

Also known as: cost per wear, usage cost, per-use cost

What You Need to Know

Cost per use is a mindset shift that helps you make smarter buying decisions by focusing on value over time rather than upfront price. It's particularly useful for evaluating expensive purchases.

Formula: Cost Per Use = (Purchase Price + Maintenance Costs) ÷ Number of Uses

Examples:

$300 Running Shoes (used 250 times): $300 ÷ 250 uses = $1.20 per use → Great value if you run 5x/week for a year

$3,000 Designer Handbag (used 10 times/year for 3 years): $3,000 ÷ 30 uses = $100 per use → Expensive unless it brings significant joy/value

$40 Concert T-Shirt (worn once): $40 ÷ 1 use = $40 per wear → Poor value (impulse purchase)

$200 Coffee Maker (used daily for 3 years): $200 ÷ 1,095 uses = $0.18 per use → Excellent value

Key Insight: A $500 jacket worn 200 times ($2.50/wear) is better value than a $50 jacket worn twice ($25/wear). Quality items used frequently often cost less per use than cheap items collecting dust.

Best For: Evaluating major purchases (appliances, furniture, electronics), justifying hobby equipment, reducing impulse buys, and shifting from "cheap" to "value" mindset.

Sources & References

This information is sourced from authoritative government and academic institutions:

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