Cost Calculator AI
Technology & Digital Services

Data Storage Cost Calculator

Compare on-premises NAS hard drive arrays and NVMe SSD hardware against cloud TB subscriptions, modeling hardware lifespans, drive failure reserves, and continuous electricity draw.

Chassis, RAID card & drives

Calculated Cloud & Storage Breakdown

Data Storage TCO Formula

Total Lifespan TCO = Initial Hardware + [(Electricity Watts * 8.76 * Rate) + (Hardware * Failure Rate %)] * Lifespan; Cost/TB/Mo = Monthly / TB
  • Initial Investment: NAS chassis or enclosure plus total raw hard drive or SSD capacity.
  • Electricity Consumption: Continuous 24/7 wattage converted to annual kWh: (Watts * 24 * 365) / 1,000.
  • Drive Failure Reserve: Annual 3% to 5% replacement contingency for mechanical disk mortality.
  • Cloud Subscription Alternative: Monthly cost per TB (e.g., Backblaze B2, Wasabi, or Google One).

Step-by-Step Worked Example

Scenario: A creative agency builds a 20 TB NAS array ($1,200 hardware, 5-year life, 50W electricity at $0.16/kWh, 5% annual drive failure reserve).

Calculation Steps:

  1. Annual Power: (50W * 8,760 hrs / 1,000) * $0.16 = $70.08/year
  2. Annual Maintenance / Spares: $1,200 * 5% = $60.00/year
  3. Annual Operating Expense: $70.08 + $60.00 = $130.08/year
  4. 5-Year Total TCO: $1,200 + ($130.08 * 5) = $1,850.40
  5. Monthly Equivalent: $1,850.40 / 60 months = $30.84/month
  6. Cost Per TB Per Month: $30.84 / 20 TB = $1.54/TB/month
Result: The 20 TB NAS costs $1,850.40 over 5 years ($30.84/mo equivalent), delivering an ultra-low unit cost of $1.54 per TB per month.

How to Use This Calculator

  1. 1Enter the required storage capacity in Terabytes (TB).
  2. 2Select whether you are evaluating an on-premises NAS, SSD array, or cloud TB subscription.
  3. 3Input the purchase cost of the enclosure and drives, plus expected equipment lifespan.
  4. 4Review your comprehensive multi-year TCO and effective cost per TB per month.

Assumptions & Limitations

  • 1 TB is calculated as 1,000 GB for telecom and commercial storage drives.
  • Includes electricity and drive replacement reserves over the operational lifespan.

Frequently Asked Questions

Is a local NAS cheaper than cloud storage?

Yes, for large volumes. At 15 to 50+ TB, an on-premise NAS typically costs $1.50 to $2.50 per TB/month over a 5-year life, compared to $6.00/TB/mo for Backblaze B2 and $20+/TB/mo for AWS S3.

What is the 3-2-1 backup rule?

Best practice dictates maintaining 3 copies of your data on 2 different media types (e.g., local NVMe + mechanical NAS), with 1 copy stored off-site in the cloud for disaster recovery.

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