What is CNC machine salvage value?

Salvage value is the expected resale, trade-in, or disposal value of the machine at the end of the ownership period.

Should salvage value be included in TCO?

Yes, but it should be modeled conservatively because resale value depends on market demand, condition, hours, controls, and buyer risk.

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Estimate residual value so a CNC total cost of ownership model does not overstate or understate the real lifecycle burden.

Direct answer: salvage value is the expected resale or trade-in value at the end of the ownership period.

Machine age, spindle hours, control generation, and service history.
High-value options such as probing, through-spindle coolant, pallet systems, and rotary axes.
Market demand for the brand, model, work envelope, and machine condition.

Net TCO = Lifecycle Cost - Expected Salvage Value

Use a conservative base case and test a low-salvage downside case before approval.

Use the total cost of ownership calculator to test salvage value against acquisition cost, maintenance, energy, and operating assumptions.