This paper presents how a Life cycle cost or Total cost of ownership analysis has been performed on machining equipment in a Swedish company. Life cycle cost models used in case studies are compared to an empirical model, used at the company, where dynamic energy, fluid, and maintenance cost are included. Linear and variable factors in the models are analyzed and discussed regarding data availability and estimation, especially with emphasis on maintenance. The life cycle cost aspect of the equipment give guidelines to consider operation, maintenance, tools, energy, and fluid cost in addition to acquisition cost, when designing/specifying the equipment.