What is the estimated cost of owning a car?

This calculator combines depreciation, loan interest, fuel or charging, insurance, maintenance and repairs, registration, and sales tax and fees. The result depends on the assumptions you enter.

Why isn't my monthly payment the true cost?

A loan payment covers the purchase price and interest, but excludes running costs like fuel, insurance and maintenance, and it hides depreciation — the value you lose when you sell. True cost adds these together and spreads them across the time you own the car.

How is depreciation estimated?

You enter the share of the purchase price you expect the car to be worth when you sell it. Depreciation is the purchase price minus that resale value. Many new cars retain roughly 40–60% of their value after five years, but it varies widely by model and mileage.

Is an EV cheaper to own than a gas car?

Often energy and maintenance costs are lower for EVs, but purchase price, insurance and depreciation can be higher. Switch the powertrain toggle and compare both scenarios with realistic local prices.

Does this include the down payment?

The down payment is not a separate cost — it is part of the purchase price, which is captured through depreciation. Spending less on interest by putting more down is reflected in the loan interest line.

True Cost of Car Ownership Calculator

Assumptions used

Depreciation = price − estimated resale value. The down payment is part of the purchase price, not an added ownership cost.

Loan interest counts only the first 60 payments in this ownership period. No loan balance remains at the end.

Energy cost: price per gallon ÷ MPG × miles driven ($0.12/mi).

Sales tax applies to the full vehicle price; tax and fees are rolled into the loan.

Annual costs are held flat (no inflation). Excludes parking, tolls, tires beyond maintenance, and opportunity cost.

How true cost of ownership is calculated

MyAutoCost combines the major costs entered for the time you plan to own the car, then divides that estimate by the number of months and miles:

Total = Depreciation + Interest + Energy + Insurance + Maintenance + Registration + Tax & fees

Monthly = Total ÷ (years × 12) and Cost per mile = Total ÷ total miles

How depreciation fits

Depreciation is the difference between purchase price and estimated resale value. On a $35,000 car that resells for 50% after five years, that estimate is $17,500 — roughly $292 a month.

Example

Using the defaults above (a $35,000 gas car, 7% APR, 12,000 miles a year, 5 years), the estimated average ownership cost is $806/month, versus a loan payment of about $651 during the loan term.

Limitations

Resale values are an assumption — check current market prices for your model.
Insurance and maintenance vary greatly by driver, location and vehicle age.
Incentives, rebates and EV tax credits are not included; subtract them from the price if they apply.

To compare vehicles by usage, see the same estimate expressed per mile in the car cost per mile calculator.

Educational estimates only — not financial, tax or legal advice. Results depend on the inputs you provide and simplified assumptions. Confirm rates, taxes and fees with lenders, dealers and insurers before making decisions.

True cost of car ownership calculator

True cost of car ownership calculator

What this means

Where the money goes · per month

Assumptions used

How true cost of ownership is calculated

How depreciation fits

Example

Limitations

Frequently asked questions

True cost of car ownership calculator

What this means

Where the money goes · per month

Assumptions used

How true cost of ownership is calculated

How depreciation fits

Example

Limitations

Frequently asked questions

What is the estimated cost of owning a car?

Why isn't my monthly payment the true cost?

How is depreciation estimated?

Is an EV cheaper to own than a gas car?

Does this include the down payment?

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