Cost of Car Ownership Calculator
The sticker price is only the beginning. This cost of car ownership calculator adds up depreciation, fuel, insurance and maintenance across the years you keep a vehicle, then breaks the total down into a cost per year and a cost per mile – so you can see what a car really costs to own. Everything runs in your browser and nothing is saved.
Your true cost of ownership
How the cost of car ownership calculator works
The cost of car ownership calculator sums four big buckets. Depreciation is the purchase price minus what the car is worth when you sell it, and for most vehicles it is the single largest cost of ownership. Fuel is your annual miles divided by fuel economy, multiplied by the price of gas and the number of years. Insurance and maintenance are simply your yearly figures multiplied across the ownership period.
With the default numbers – a 30,000 dollar car kept five years and sold for 12,000 – depreciation is 18,000, fuel is about 7,500, insurance is 7,000 and maintenance is 4,000. That totals roughly 36,500 dollars, or about 7,300 dollars per year and 61 cents per mile. Seeing the cost per mile is a useful reality check the next time you weigh a long drive against other options.
What drives the cost of owning a car
Depreciation dominates, so a model that holds its value can be far cheaper to own than a cheaper car that loses value quickly. Fuel is the lever you feel most often at the pump, and small differences in fuel economy add up over tens of thousands of miles. Insurance varies with your location, record and the vehicle itself, while maintenance climbs as a car ages out of warranty.
You can lower most of these. Keeping tires properly inflated and following the service schedule protects fuel economy and reliability; the Department of Energy explains the payoff in its guide to keeping your vehicle in shape. Before you buy, the Federal Trade Commission has practical advice on buying and owning a car that can keep total costs down.
Using the numbers to decide
A cost per year figure makes it easy to compare two cars fairly, even when one is cheaper up front but thirstier or more expensive to insure. If the per-year cost of your current car is climbing because of repairs, comparing it against the all-in cost of a newer vehicle can show whether it is time to replace it.
For a fuller picture, pair this with financing costs if you are taking a loan, since interest adds to the total you pay. The goal is to judge a car on everything it costs over the years you own it, not just the payment or the price on the window.
Frequently asked questions
What is the biggest cost of owning a car?
For most vehicles it is depreciation – the difference between what you paid and what the car is worth when you sell it. Fuel, insurance and maintenance follow, and their order depends on how much you drive and what you insure.
How do I calculate cost per mile?
Add up every cost of ownership over the period you keep the car, then divide by the total miles driven in that time. This calculator does it for you and shows the result as a cost per mile.
Does this include loan interest?
No, the default calculation covers depreciation, fuel, insurance and maintenance. If you finance the car, add the total interest you will pay to get the full picture of ownership costs.
How can I lower my cost of ownership?
Choose a model that holds its value, keep up with maintenance, drive efficiently, and shop your insurance. Depreciation and fuel are usually the two costs with the most room to improve.
How accurate is the resale value?
It is an estimate you provide. Check recent sale prices for the same make, model, year and mileage to set a realistic resale figure, since it strongly affects the depreciation total.
These figures are estimates for general information only and are not financial advice. Explore more automotive calculators, or weigh leasing against buying with the lease vs buy calculator.