The purchase price is only the beginning of what a car costs. Fuel, insurance, maintenance, repairs, registration, and — the biggest one — depreciation all add up over the years you own it. This calculator estimates the true total cost of ownership so you can compare vehicles on what they really cost, not just the price tag.
What total cost of ownership includes
The calculator combines your financing costs, estimated insurance premiums, fuel based on your driving and the car's efficiency, routine maintenance and repairs, registration and fees, and depreciation — the value the car loses over time. Together these reveal the annual and lifetime cost of keeping the vehicle on the road.
Why depreciation dominates
For most new cars, depreciation is the single largest cost — a new vehicle can lose 20–30% of its value in the first year and about half within three years. That is why buying a lightly used car and keeping it a long time is one of the most effective ways to cut your cost of driving.
A worked example
A $35,000 SUV might cost around $9,000–$11,000 per year to own in the early years once you add depreciation (perhaps $4,000–$5,000 annually at first), insurance ($1,500), fuel ($2,000), maintenance ($1,000), and financing interest. Knowing this helps you see that a cheaper-to-run car can save thousands a year.
How to lower your cost of ownership
- Buy a reliable car two to three years old to let someone else absorb the steepest depreciation.
- Choose a fuel-efficient model if you drive a lot of miles.
- Keep up with maintenance to avoid expensive repairs and preserve resale value.
- Shop insurance annually — premiums for the same coverage vary widely between insurers.