Car Ownership Cost Calculator
Calculate the true total cost of owning a vehicle—beyond the sticker price.
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Vehicle & Purchase Details
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Operating Costs
🔧 Calculate Your Actual MPG
5-Year Total Cost of Ownership
ℹ️ CAR DEPRECIATION REALITY CHECK
New cars lose 15-20% in year 1, ~50% by year 5
✅ Good Equity Position
Your 17% down payment keeps you in positive equity throughout the loan. You're protected if the car is totaled!
▼🛡️ GAP Insurance Recommendation:NOT NEEDED
✅ Your 17% down payment keeps you safe. You don't need GAP insurance - save the $500+!
▼📊 View Month-by-Month Depreciation Schedule
| Month | Loan Balance | Vehicle Value | Equity | Status |
|---|---|---|---|---|
| Purchase | $25,000 | $30,000 | +$5,000 | ✅ Safe |
| Month 6 | $22,581 | $27,000 | +$4,419 | ✅ Safe |
| Month 12 | $20,082 | $24,000 | +$3,918 | ✅ Safe |
| Month 18 | $17,501 | $22,127 | +$4,626 | ✅ Safe |
| Month 24 | $14,835 | $20,400 | +$5,565 | ✅ Safe |
| Month 30 | $12,081 | $18,808 | +$6,727 | ✅ Safe |
| Month 36 | $9,236 | $17,340 | +$8,104 | ✅ Safe |
| Month 42 | $6,298 | $15,987 | +$9,689 | ✅ Safe |
| Month 48 | $3,262 | $14,739 | +$11,477 | ✅ Safe |
| Month 54 | $127 | $13,589 | +$13,462 | ✅ Safe |
| Month 60 | $0 | $12,528 | +$12,528 | ✅ Safe |
Cost Breakdown
Cumulative Cost Over Time
Year-by-Year Breakdown
| Year | Depreciation | Financing | Fuel | Insurance | Maintenance | Total |
|---|---|---|---|---|---|---|
| Year 1 | $6,000 | $1,630.888 | $1,875 | $1,800 | $600 | $17,473.13 |
| Year 2 | $4,500 | $1,311.617 | $1,875 | $1,800 | $1,400 | $16,773.13 |
| Year 3 | $3,600 | $970.964 | $1,875 | $1,800 | $600 | $15,073.13 |
| Year 4 | $3,000 | $607.496 | $1,875 | $1,800 | $1,400 | $15,273.13 |
| Year 5 | $2,400 | $219.687 | $1,875 | $1,800 | $600 | $13,873.13 |
New vs. Used Comparison
🚗 Auto Loan Refinance Calculator
Calculate potential savings from refinancing your auto loan. Compare current vs. new terms to see if refinancing makes sense.
Calculate Refinance Savings →The True Cost of Car Ownership
Most people only think about the purchase price or monthly payment when buying a car. But the true cost of owning a vehicle is much higher once you factor in depreciation, insurance, fuel, maintenance, and repairs.
Why the Sticker Price Is Misleading
According to AAA, the average annual cost of owning a new vehicle is $12,182 (or $1,015/month)—far more than just the car payment. Over 5 years, a $30,000 car often costs $60,000-70,000 in total.
Hidden Costs Most People Forget:
- Depreciation: A new car loses 20-30% of its value in the first year, 55% over 5 years
- Financing: A 6% interest rate on a $25k loan adds $4,000+ over 5 years
- Insurance: $1,500-2,500/year depending on age, location, and vehicle
- Fuel: 15,000 miles/year at 25 MPG and $3.50/gal = $2,100/year
- Maintenance & Repairs: $1,000-2,000/year (increases with age)
- Registration & Taxes: $200-800/year depending on state
Depreciation: The Biggest Hidden Cost
Depreciation is the single largest expense of car ownership, accounting for 40-50% of total costs. It is the difference between what you pay for a car and what it is worth when you sell it.
New Car Depreciation Curve:
- Year 1: Loses 20-30% of value ($6,000-9,000 on a $30k car)
- Year 2: Loses another 15% ($3,150)
- Year 3: Loses 12% ($2,268)
- Years 4-5: Loses 10% annually (~$1,800-2,000/year)
- Total 5-year loss: ~55% ($16,500 on a $30k car)
The moment you drive a new car off the lot, it loses $5,000-8,000 in value. This is why buying used (2-4 years old) can save you tens of thousands over time.
New vs. Used: Which Costs Less?
New Car Pros:
- Lower maintenance initially (warranty coverage)
- Latest safety features and technology
- Full manufacturer warranty
- No previous owner wear and tear
- Better fuel efficiency (newer models)
Used Car Pros:
- Significantly lower purchase price
- Much less depreciation (someone else took the hit)
- Lower insurance costs
- Proven reliability (if well-maintained)
- Better value for money
The Smart Buyer's Strategy:
- Buy used (2-4 years old): Let someone else take the depreciation hit
- Pay cash if possible: Avoid financing costs and interest
- Choose reliable brands: Toyota, Honda, Mazda have lower maintenance costs
- Get a pre-purchase inspection: $100-200 can save thousands
- Factor in total cost: Use this calculator to compare true ownership costs
- Consider certified pre-owned: Best of both worlds - used price with warranty
💡 Pro Tip
The sweet spot for used car buying is typically 2-3 years old with 30,000-50,000 miles. You avoid the steepest depreciation while still getting a relatively new, reliable vehicle.
Key Financial Terms
Understand the essential concepts behind this calculator
Total Cost of Ownership (TCO)
The complete cost of owning something over its lifetime, including purchase price, maintenance, insurance, fuel, repairs, and eventual resale value.
Total Cost of Ownership (TCO)
The complete cost of owning something over its entire lifetime, including all purchase, maintenance, and operational expenses.
Frequently Asked Questions
Common questions about the Car Ownership Cost Calculator
🚗 Transportation & Vehicle Data Sources
• Average annual cost: $12,297 ($1,025/month) for 15,000 miles/year
• Small sedan: ~$8,500/year
• Medium SUV: ~$12,000/year
• Pickup truck: ~$13,500/year
• Includes depreciation, fuel, insurance, maintenance, registration, financing
→ Source: AAA - Your Driving Costs
• New vehicles typically lose 20-30% of value in the first year
• Average 5-year depreciation across all vehicles: ~45-50%
• Trucks and SUVs with high demand retain closer to 55-60%
→ Source: Car and Driver - Depreciation Analysis
• Hybrids average 40.7% depreciation after 5 years (best retention)
• Gasoline & mixed powertrains average 45.6% depreciation after 5 years
• Battery electric vehicles average 58.8% depreciation after 5 years (worst retention)
→ Source: iSeeCars 5-Year Depreciation Study (2025)
• Historical trend: Plug-in vehicles depreciate faster than conventional vehicles
• Improvements in battery tech are narrowing the depreciation gap
• Used EV pricing is heavily influenced by federal tax credits and rapid tech cycles
→ Source: Argonne National Lab - Residual Value Trends
→ Source: Recurrent Auto - Used EV Buying Report
• Up to $7,500 tax credit for new EVs
• Up to $4,000 for used EVs (price cap $25,000)
• Income limits apply: $300k joint, $225k head of household, $150k single
• Vehicle must meet domestic assembly and battery component requirements
→ Source: IRS - Clean Vehicle Credits
• Regular gasoline: $3.10-3.60/gallon (national average)
• Diesel: $3.50-4.20/gallon
• Electricity for EVs: $0.11-0.16/kWh (home charging), equivalent to $0.80-1.20/gallon
• At 12,000 miles/year: Gas car (25 mpg) = $1,680/yr | EV (3.5 mi/kWh) = $620/yr
→ Source: U.S. Energy Information Administration
• Full coverage: $2,008/year ($167/month) national average
• Minimum liability: $622/year ($52/month)
• Varies significantly by state, age, driving record, and vehicle
→ Source: National Association of Insurance Commissioners (NAIC)
• Average annual maintenance/repairs: $1,186 per vehicle
• EVs: ~40% lower maintenance costs (no oil changes, fewer brake repairs)
• Luxury vehicles: 1.5-2x higher maintenance than economy cars
→ Source: AAA - Vehicle Maintenance Costs
• ~30% of new vehicles are leased (down from 35% pre-pandemic)
• Average lease: $578/month for 36 months
• Typical lease mileage allowance: 12,000-15,000 miles/year
• Excess mileage fees: $0.15-0.30 per mile over limit
→ Source: Edmunds - Leasing Statistics
Note: Transportation costs vary widely by location, vehicle type, and usage. Urban dwellers may save significantly by using public transit or rideshare instead of owning.
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⚠️ Important Disclaimer
This Car Ownership Cost Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.