Total Car Ownership Cost Calculator
Calculate the true total cost of owning a car including purchase price, fuel, insurance, maintenance, and depreciation over time.
The sticker price of a car is only the beginning. Total Cost of Ownership (TCO) adds every dollar you’ll spend over your ownership period — and the results are often eye-opening. A cheaper car can easily cost more to own than a more expensive one.
Formula: TCO = Purchase Price + Financing Cost + Insurance + Fuel + Maintenance + Registration + Depreciation Loss
Annual TCO: Annual TCO = TCO ÷ Years of Ownership
Cost per mile: Cost per Mile = Annual TCO ÷ Annual Miles Driven
What each variable means:
- Financing Cost — total interest paid over the loan term (use the amortization formula or loan calculator).
- Depreciation Loss — Purchase Price − Estimated Resale Value. New cars lose 15–25% of value in year one alone.
- Fuel Cost — (Annual Miles ÷ MPG) × Price per Gallon.
- Maintenance — oil changes, tires, brakes, scheduled services. Budget $1,000–$2,500/year for most vehicles.
- Insurance — varies hugely by driver age, location, and vehicle type.
Worked example: $35,000 car, financed over 5 years at 6% APR, driven 12,000 miles/year.
- Financing cost: ~$5,600 total interest
- Depreciation: $35,000 − $18,000 resale = $17,000 over 5 years
- Fuel (28 MPG, $3.50/gal): $1,500/year × 5 = $7,500
- Insurance: $1,800/year × 5 = $9,000
- Maintenance: $1,200/year × 5 = $6,000
5-Year TCO = $35,000 + $5,600 + $17,000 + $7,500 + $9,000 + $6,000 = $80,100 Cost per mile = $80,100 ÷ 60,000 = $1.34/mile
Typical range: $0.60–$1.50 per mile depending on vehicle class.