True Cost of Car Ownership Calculator
Calculate the real monthly cost of owning a car including payment, insurance, gas, maintenance, and depreciation.
The true cost of car ownership is typically 50–100% higher than just the monthly payment. Most people only consider the loan payment, but fuel, insurance, maintenance, depreciation, and registration add up significantly.
Cost categories:
- Monthly payment — The loan or lease payment. Average new car payment in the US is $726/month (2024).
- Insurance — Average $1,500–2,500/year. Varies by age, location, driving record, and vehicle type.
- Fuel — Depends on miles driven, fuel economy, and gas prices. Average American drives 13,500 miles/year.
- Maintenance — Oil changes, tires, brakes, filters. Average $100–150/month for a car over 3 years old.
- Depreciation — The largest hidden cost. A new car loses 20% of its value in year 1 and about 15% each subsequent year. After 5 years, the average car is worth 40% of its original price.
- Registration and taxes — Annual registration, property tax in some states. Average $200–500/year.
- Parking — $0 in suburbs, $200–500/month in cities.
The real formula: True monthly cost = Payment + (Insurance / 12) + Fuel + Maintenance + (Depreciation / 12) + (Registration / 12) + Parking
Cost per mile: Divide total monthly cost by monthly miles to get cost per mile. The IRS standard mileage rate is $0.67/mile (2024), which is a reasonable benchmark.
Buying vs leasing vs used: A 3-year-old used car typically offers the best value. You avoid the steepest depreciation curve while still getting a relatively modern, reliable vehicle. Certified pre-owned programs offer warranty coverage.
Tip: Before buying, calculate the total 5-year cost, not just the monthly payment. A car with lower payments but poor fuel economy and expensive maintenance can cost more overall.