True Cost of Car Ownership Calculator
See what a car really costs over the years you keep it: depreciation, loan interest, fuel, insurance, repairs and fees.
The price tag is only part of the cost
Most people compare monthly payments. The true cost adds the value the car loses (depreciation), the interest on the loan, fuel, insurance, repairs and yearly fees, then subtracts what you can sell it for. Over five years these extras often add up to as much as the car cost.
How it is calculated
Depreciation uses a fixed percentage of remaining value each year, so it is heaviest early. The loan runs for the years you own the car. Fuel uses miles, miles per gallon and fuel price. Maintenance rises 10% a year to reflect older-car repairs.
Using it
Compare a new car, a used car and a cheaper model by changing the price and depreciation. Compare cost per mile, not only monthly payment.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Used cars lose value more slowly, so try 10% for a three-year-old car.
- Compare cost per mile between two cars.
- Shop insurance quotes before you buy.
Learn more
Frequently asked questions
Why is the cost higher than my payment?
Payments ignore fuel, insurance, repairs and the value the car loses.
What depreciation should I use?
New cars often lose 15% to 20% a year early on. Cars three to five years old usually lose less.
Does it include an electric car?
Use miles per gallon equivalent and electricity cost per gallon-equivalent for fuel.
Is the loan term the years I own it?
Yes, for simplicity the loan runs the same number of years.
Does it include parking or tolls?
No. Add them to the yearly fees.
Money guides for this topic
All guides →The True Cost of Owning a Car
Depreciation, insurance, fuel, repairs and loan interest add up fast. Learn how to find your real cost per month and per mile.
Read guide →How Loan Interest Really Works
Understand APR, amortization and why early payments are mostly interest, with tips to pay less.
Read guide →Buying a Home or Car: The Math Before You Sign
How to work out what you can really afford for a home or car, using simple rules and real numbers.
Read guide →Related calculators
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Open calculator →Results are estimates and not financial advice.