Total Cost of Car Ownership Calculator

Enter Calculation

Purchase Price ($)

Estimated Resale Value after 5 years ($)

Annual Fuel Cost ($)

Annual Insurance ($)

Annual Maintenance ($)

Annual Taxes & Fees ($)

Total Financing Interest over 5 years ($)

Results

5-Year Total Cost of Ownership

$39,000

$7,800 / year · $650 / month

Cost Component (5 yr)	Amount
Depreciation	$15,000
Fuel	$9,000
Insurance	$7,000
Maintenance & Repairs	$4,000
Financing Interest	$2,500
Taxes & Fees	$1,500

What Is Total Cost of Ownership?

The sticker price is only part of what a car really costs. The Total Cost of Ownership (TCO) captures every dollar you spend over the time you keep the vehicle — most notably depreciation, which is usually the single largest expense and is invisible until you sell. This calculator estimates your TCO over a typical 5-year ownership period so you can compare vehicles on a like-for-like basis instead of just comparing purchase prices.

The six cost categories that combine into total cost of ownership.

How to Use It

Enter the purchase price and the value you expect the car to be worth in five years (the resale value). Then add your typical annual costs for fuel, insurance, maintenance, and taxes & registration fees. Finally, enter the total interest you will pay on any car loan over the five years (enter 0 if you pay cash). The calculator multiplies the annual costs by five, adds depreciation and financing, and shows the grand total along with per-year and per-month averages.

The Formula Explained

$$\text{TCO} = (\text{Purchase Price} - \text{Resale Value}) + 5 \times (\text{Fuel} + \text{Insurance} + \text{Maintenance} + \text{Taxes}) + \text{Financing Interest}$$ Depreciation is simply how much value the car loses while you own it. The recurring costs are annual figures scaled across the 5-year horizon, and financing interest is entered as a lifetime total because loan structures vary.

Worked Example

Buy a car for $30,000 with a $15,000 resale value (depreciation \(= \$15{,}000\)). Fuel $1,800/yr, insurance $1,400/yr, maintenance $800/yr and taxes $300/yr total \(\$4{,}300/\text{yr} \times 5 = \$21{,}500\). Add $2,500 in financing interest. $$\text{TCO} = 15{,}000 + 21{,}500 + 2{,}500 = \$39{,}000$$ or $7,800 per year and $650 per month.

A typical car loses the most value in its first years — the largest ownership cost.

FAQ

Why is depreciation so large? Most cars lose 40–60% of their value in five years, so it often dwarfs fuel and maintenance combined.

Do I include the loan principal? No — the principal is already captured by the purchase price. Only the interest is an extra ownership cost.

Can I use this for any country? Yes. The math is universal; just enter all costs in your own currency and local figures.