Cost considerations are critical within logistics and supply chain management. Since total cost analysis (TCA) is complex and implies many challenges, a systemised procedure for performing TCA is important to reach a good result. However, while literature in the supply chain management (SCM) field suggests what to include in a TCA, it does not provide explicit guidance on how to perform a TCA. The purpose of this paper is therefore to propose a framework for performing TCA in an SCM context. An initial framework was developed based on TCA literature. It was refined in two steps: First, through focus group discussions with academic scholars; and thereafter, through case studies in the retail sector. A 12-step framework for performing TCA is proposed, and challenges related to the steps are discussed. Although the framework is presented as a sequential process, iteration back and forth between the steps is recommended. While existing models for TCA in SCM focus on which cost elements to include, this framework suggests how to perform TCA in a systemised way with regard to complexity and challenges. Researchers can use the framework to support the TCA process and bring transparency to the results and how these are presented. The framework can also be helpful for practitioners conducting TCAs for decision-making, and for logistics and SCM scholars teaching TCA.