Total Cost of Ownership Calculator

Enter Calculation

Purchase Price ($)

Estimated Resale Value After Ownership ($)

Years of Ownership

Annual Fuel/Energy ($)

Annual Insurance ($)

Annual Maintenance/Repairs ($)

Annual Taxes & Fees ($)

Results

Annual Cost to Own

$7,500

per year

Monthly cost	$625
Total cost over ownership	$37,500
Depreciation / year	$3,000
Fuel / year	$1,800
Insurance / year	$1,400
Maintenance / year	$800
Taxes & fees / year	$500

What Is the True Cost to Own?

The sticker price of a car is only the beginning. The true cost of ownership (TCO) captures everything you actually spend to keep a vehicle on the road over the time you own it: depreciation, fuel or charging, insurance, maintenance and repairs, plus registration taxes and fees. This calculator turns those scattered numbers into a single, comparable annual and total figure so you can budget honestly and compare vehicles fairly.

Total cost to own combines depreciation, fuel, insurance, maintenance and taxes/fees.

How to Use the Calculator

Enter the purchase price, your best estimate of the resale (trade-in) value at the end of your ownership period, and how many years you plan to keep the car. Then add your typical annual fuel, insurance, maintenance and taxes/fees. The tool spreads depreciation evenly across the years and adds the recurring costs to produce yearly, monthly and lifetime totals.

The Formula Explained

Depreciation per year is simply the value lost (price minus resale value) divided by the number of years. Adding the four recurring annual costs gives the annual cost to own. Multiply by the years owned for the total, or divide by 12 for a monthly figure:

$$\text{Annual Cost} = \frac{\text{Price} - \text{Resale}}{\text{Years}} + \text{Fuel} + \text{Insurance} + \text{Maintenance} + \text{Taxes/Fees}$$

Annualized depreciation plus yearly running costs equals the annual cost to own.

Worked Example

A car bought for $30,000 with a $15,000 resale value after 5 years loses $15,000, or $3,000/year in depreciation. With $1,800 fuel, $1,400 insurance, $800 maintenance and $500 taxes/fees, the annual cost is \($3{,}000 + $1{,}800 + $1{,}400 + $800 + $500 = $7{,}500\) per year. That is $625 per month and $37,500 over 5 years.

FAQ

Does this include my loan interest? Not directly. If you finance, add your average annual interest to the taxes & fees field for a fuller picture.

How do I estimate resale value? Check valuation guides for a similar make, model and mileage at your planned sell date; many cars retain 40–60% after 5 years.

Is depreciation really the biggest cost? For most newer cars, yes — it often exceeds fuel and insurance combined, which is why it dominates the true cost to own.