Skip to content
Lease vs Buy Car

Car Total Cost of Ownership Calculator

The sticker price is only part of the story. Over the years you own it, a car also consumes depreciation, loan interest, fuel, insurance, maintenance, and taxes — then hands some money back when you sell. This calculator adds all six cost components, credits the resale value, and turns the result into three honest numbers: total cost, cost per year, and cost per mile. Adjust any default to match your car — every input is an editable estimate.

The basics
$

What you'd actually pay after negotiating, not the sticker.

yrs

The longer you keep it, the lower the cost per year tends to fall.

Driving an EV? Enter your equivalent efficiency and set the price field below to what you pay per unit of charge.

$
Running costs
$
$
$

Costs step up once the warranty runs out.

Financing

Turn off to see the cash-purchase cost — interest drops to zero.

%
$

A bigger down payment shrinks the amount financed — and the interest.

Advanced: Taxes, fees & depreciation
%

Applied to the full purchase price in this model.

$
%
%

This curve implies a $17,748 resale value after 5 years.

Total cost of ownership

$56,021

over 5 years and 60,000 miles — everything you spend, minus the $17,748 the car is still worth when you sell.

Cost per year
$11,204
Cost per mile
$0.93
Resale value
$17,748

Where the money goes

Depreciation$24,75244%
Loan interest$7,89414%
Fuel$7,00012%
Insurance$9,00016%
Maintenance$3,9007%
Sales tax & fees$3,4756%

Biggest line item: Depreciation at 44% of the total. Depreciation is already net of resale — it's the value the car sheds while you own it, not the price you paid.

All defaults are editable, typical-value estimates — not live prices or quotes for your vehicle. Every formula and default is documented on the methodology page.
Advertisement

How this calculator works

The model adds up everything the car consumes over your ownership window, then subtracts what you get back at resale. Depreciation comes from a two-stage curve — a steep first year, then a steady percentage of the remaining value each later year — the same curve unpacked in car depreciation explained. If you finance, interest is what you pay over the loan months that fall inside your window; the principal isn't double-counted, because the car's price already shows up through depreciation and resale. Fuel is distance divided by efficiency times price; insurance and maintenance accumulate per year, with maintenance stepping up once the warranty ends. Sales tax and fees are added once at purchase. Every formula, default, and simplification is documented — with worked examples — on the methodology page.

Frequently asked questions

What does this TCO calculator include — and what does it leave out?
It counts the six big components: depreciation (net of resale value), loan interest, fuel, insurance, maintenance, and sales tax plus purchase fees. It deliberately leaves out costs that vary too much to estimate honestly — parking, tolls, car washes, tickets, and major repairs beyond the flat maintenance estimates. Every formula and default is documented on the methodology page.
Why is depreciation usually the biggest cost?
Because a new car sheds value fastest exactly when it is worth the most: the default curve — a typical, editable estimate documented on the methodology page — assumes 20% of value lost in year one, then 15% of the remaining value each later year. Over a five-year window that usually dwarfs fuel, insurance, or interest. Car depreciation explained walks through the curve and how to soften it.
How does financing change the total cost of ownership?
Financing adds loan interest on top of every other cost — on the defaults, a 7% APR over 60 months — and a bigger down payment shrinks the amount financed and therefore the interest. Toggle “Finance with a loan” off to see the cash-purchase cost of the same car. For the full payment schedule and total interest, use the auto loan calculator.
Can I use this calculator for an electric vehicle?
Yes — treat the two fuel fields as electricity fields. Set the fuel efficiency to how far your EV travels per unit of energy, and the fuel price to what you pay for that same unit of charge; the math works identically. Also revisit the maintenance defaults so they match your vehicle rather than the combustion-car estimates.

Related calculators