Operational cost of mining equipment is one of the most important factors when equipment purchasing decisions are made, but it is also the cost factor where the most errors are made, by both the manufacturer and the owner. This report focuses on the important cost factors that need to be considered when the total operational cost of equipment is determined. This report does not include the formulas for calculating operational cost, but rather focuses on discussing these cost factors in detail and also the factors that will influence these cost factors. Graphical frameworks at the end of the report summarise the cost factors and can be used as easy reference for calculating the operational cost of equipment, once these cost factors are understood.