Cost of Ownership Calculator
The price on the window is where owning a car begins, not where it ends. Add up fuel, insurance, and upkeep across the years, subtract what you'll get back, and see what the car truly costs.
The true cost of owning the car
The payment is only half the story. Fold in depreciation, fuel, insurance, and upkeep, subtract what you'll get back at resale, and you've got the real total — and what it works out to each year.
Total cost of ownership
$39,500
Depreciation plus running costs
Cost per year
$7,900
Total spread across the years you own it
Depreciation
$16,000
Purchase price minus resale value
Running costs
$23,500
Fuel, insurance, and maintenance combined
Adding up the whole bill
True cost of ownership has two moving parts. The first is depreciation — what the car loses in value, found by subtracting its resale price from what you paid. The second is running costs: fuel, insurance, and maintenance, stacked up over every year you keep it.
Take a $30,000 car you drive for five years and sell for $14,000. That's $16,000 gone to depreciation. Add $2,200 a year in fuel, $1,600 in insurance, and $900 in maintenance — about $23,500 over five years — and the real total lands near $39,500, or roughly $7,900 a year.
That annual figure is the honest one. It's what the car costs you every year to keep on the road, and it's usually a long way from the monthly payment people fixate on.
Frequently asked questions
What's the biggest cost most people forget?
Depreciation, by a mile. A $30,000 car that resells for $14,000 quietly cost you $16,000 just to own, and you never wrote a check for it. It usually dwarfs fuel and maintenance combined, which is why the resale field matters so much here.
How is total cost of ownership calculated?
Depreciation (purchase price minus resale value) plus your running costs (fuel, insurance, and maintenance multiplied by the years you own it). The annual figure is just that total divided by the number of years.
Should I include my loan interest?
For a fuller picture, fold your total loan interest into the maintenance or a running-cost field. The tool centers on price, depreciation, and running costs, but interest is real money and worth adding if you financed the car.
Why does resale value swing the total so much?
Because it comes straight off the top. A car that holds 55% of its value costs far less to own than one that keeps 30%, even at the same sticker price. Picking a model with strong resale can save more than years of careful fuel savings.
Can I compare two cars with this?
That's exactly what it's built for. Run one car, note the annual cost, then run the other. The cheaper sticker often loses once heavy depreciation and higher upkeep are counted, and this is where that shows up.
How accurate is the resale estimate I enter?
Only as good as your guess, so it's worth researching. Check listings for the same model at the age you plan to sell, or use a valuation site. A realistic resale number is what makes the whole total trustworthy.