Platform

Monte Carlo Risk Simulation

TCO
ISO 55000

P50 Median TCO

Most likely outcome

P90 (Worst 10%)

+$530k vs baseline

P10 (Best 10%)

−$400k vs baseline

Risk Range P10→P90

σ = $285k · n=1000

TCO Outcome Distribution

Based on 1,000 Monte Carlo simulations · 20yr horizon

Risk Contribution to TCO Variance

Failure-rate uncertainty is now the largest driver (22%). Condition-based maintenance and reman parts tighten this distribution the most.

Percentile Outcomes

PercentileTCOvs Baseline
P5 (Best)$3.28M−$540k (−14%)
P10$3.42M−$400k (−10%)
P25$3.61M−$210k (−5%)
P50 (Median)$3.82M
P75$4.08M+$260k (+7%)
P90$4.35M+$530k (+14%)
P95 (Worst)$4.58M+$760k (+20%)

Randomized Input Distributions

InputDistributionMinMaxStd Dev
Fuel PriceLog-normal$1.10$2.80$0.35
Failure RateGamma0.5×3.0×0.4×
Labor RateNormal$75$145$18
Inflation (Labor)Normal1.5%6.5%1.0%

Each run samples all four inputs and re-computes the full 20-year TCO with Weibull failure draws.