Power quality mitigation devices play an important role in lots of industrial segments. Although there were many devices available in the market, the selection of an appropriate device specially for voltage sags and interruptions mitigation has been a challenge in the utility and customer for several years. It usually depends on technical and economic characteristics of the device. Nevertheless, most mitigation method is selected by rule of thumb or empirical method. In this paper, the life cycle cost analysis for the probabilistic risk assesment of voltage sag mitigation method is performed using either the deterministic or probabilistic approach. The difference between a deterministic and a probabilistic cost analysis approach is illustrated with five different case studies. This paper not only provides a comparison of life cycle costing of various devices but it also indirectly shows the possible savings due to the mitigation of voltage sags in the form of a project balance chart.