Cost Per Use
The total cost of an item divided by how many times you use it, revealing the true value of purchases.
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:
- consumerfinance.gov
https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/
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