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Total Cost of Car Ownership Calculator

Enter purchase price, loan details, fuel, insurance, maintenance, and depreciation rate to see your true total ownership cost over any number of years. Results include total cost, monthly cost, and cost per mile.

Vehicle & Loan

Annual Operating Costs

Oil changes, tires, brakes, etc.

Depreciation & Ownership

Typical range: 10-20%. New cars often lose 15-25% in year 1.

Results

Total loan interest paid--
Total fuel cost--
Total insurance--
Total maintenance--
Total depreciation--
Total cost of ownership--
Cost per month--
Cost per mile--

Estimates only. Actual costs vary by vehicle, driver, location, and market conditions. Not financial advice.

Jessica MartinezBy Jessica Martinez, Contributing Writer, Business & Finance · Updated 2026-07-02

The sticker price is only the starting point. A vehicle that costs $35,000 to buy can cost $60,000 or more to own over five years once you count interest, fuel, insurance, upkeep, and the value the car loses every year. This calculator adds it all up.

Quick answer: A $35,000 car bought with $5,000 down at 6.5% APR over 60 months, driven 14,000 miles per year at 28 MPG on $3.50 gas, insured for $1,800/year, maintained for $900/year, and depreciating at 15% per year costs roughly $57,000 to $62,000 over 5 years, or about $950 to $1,030 per month. The per-mile cost lands near $0.82 to $0.88.

What goes into total cost of ownership

There are five main cost buckets. Loan interest is the extra you pay the lender above the vehicle price. Fuel depends on how many miles you drive, your car's MPG, and the price of gas. Insurance is a fixed annual expense that can vary by hundreds of dollars depending on your driver profile and location. Maintenance covers scheduled service (oil changes, filters, tires, brakes) plus minor repairs that come up every few years. Depreciation is the value your car loses over time, which is a real cost because you will get less when you sell or trade it.

How the loan interest is calculated

The calculator uses the standard amortization formula. Your loan amount is the purchase price minus the down payment. Monthly payments are computed from the APR and term. Total interest is total payments minus the loan amount. Only the portion of the loan term that falls within your ownership years is used if you sell the car before the loan ends.

How depreciation is estimated

This calculator uses the declining-balance method. Each year, the car loses the same percentage of its current value. After year 1, a $35,000 car depreciating at 15% is worth $29,750. After year 2, it is worth $25,288. After five years, it is worth about $15,500. The total depreciation is the difference between the purchase price and the estimated residual value at the end of your ownership period.

Worked example

Purchase: $35,000. Down: $5,000. Loan: $30,000 at 6.5% APR for 60 months. Annual miles: 14,000. MPG: 28. Gas: $3.50/gal. Insurance: $1,800/year. Maintenance: $900/year. Depreciation: 15%/year. Ownership: 5 years.

Loan interest: approximately $5,220. Fuel: 14,000 / 28 x $3.50 x 5 = $8,750. Insurance: $1,800 x 5 = $9,000. Maintenance: $900 x 5 = $4,500. Depreciation: $35,000 x (1 - 0.85^5) = $35,000 - $15,529 = $19,471.

Total: $5,000 (down) + $5,220 (interest) + $8,750 (fuel) + $9,000 (insurance) + $4,500 (maintenance) + $19,471 (depreciation) = approximately $51,941 over 5 years, or about $866 per month.

Why depreciation dominates the total

For most drivers, depreciation is the single largest cost item, yet it is the one most people ignore because there is no bill for it. When you trade in or sell the car, you see the number clearly. Planning for it in advance helps you choose vehicles with better resale value and understand why buying a lightly used car can save thousands on the depreciation curve.

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FAQs

What is included in the total cost of car ownership?

A complete total cost of ownership includes the purchase price (or down payment and loan payments), fuel, insurance, routine maintenance, tires, registration and taxes, depreciation (the value lost over time), and occasional repairs. This calculator covers the major categories so you get a realistic picture of what a vehicle actually costs over your ownership period.

How many miles per year does the average American drive?

The Federal Highway Administration reports an average of around 14,300 miles per year for licensed drivers in the United States. Individual figures vary widely. Urban commuters may drive 8,000 to 10,000 miles per year while rural drivers or long-distance commuters often exceed 20,000.

How does depreciation fit into car ownership costs?

Depreciation is often the single largest cost of owning a car, yet it is invisible because you do not write a check for it. A new car typically loses 15 to 25 percent of its value in the first year and 10 to 15 percent annually after that. Over five years, a $35,000 vehicle can lose $15,000 to $20,000 in value. This calculator estimates total depreciation over your ownership period and includes it in the per-mile cost.

Is it cheaper to own a new or used car?

Used cars usually have a lower purchase price and slower depreciation, but may have higher repair costs, shorter remaining life, and higher financing rates. New cars carry steep depreciation in years one and two but often come with warranty coverage that limits repair costs. The best choice depends on which used vehicle you are comparing, your financing options, and how many miles you plan to drive.