Car Ownership Cost Calculator (TCO)
How much does it really cost to own a car? Enter the purchase price, how fast it loses value and your yearly running costs to see the full cost over the years you keep it, per year, per month and per kilometre or mile. Loan interest is not included. For the loss in value alone, use the car depreciation calculator, and for loan costs use the car payment calculator.
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Formula
- Resale value =
price × (1 − depreciation%)^years - Depreciation =
price − resale value - Running costs =
(fuel + insurance + maintenance + tax and fees) × years - Total cost = depreciation + running costs; per distance = total ÷ (distance per year × years)
Financing interest is not included.
Worked example
Price 30,000, 15% a year for 5 years: resale 13,311.16, depreciation 16,688.84. Running costs (1,800 + 900 + 600 + 300) × 5 = 18,000. Total 34,688.84, which is 6,937.77 a year, 578.15 a month, and 0.578 per km over 60,000 km.
Shorter horizon: the same car kept 3 years costs 22,376.25 in total, or 621.56 a month, because the early years lose the most value.
Use this when
You are comparing two cars whose sticker prices are close but whose fuel and insurance costs differ, or deciding whether to replace a car. Depreciation is often the largest single cost, so look at it beside the running costs.
Typical values
As typical figures, many cars lose roughly 10 to 20 percent of their value a year. Yearly running costs vary a lot with the car, the distance and the country, so enter your own bills.
How it differs from nearby pages
The car depreciation calculator models the drop in value alone, with a larger first-year loss. The car payment calculator and car loan early payoff calculator deal with financing, which this page leaves out. The fuel cost calculator prices a single trip or period of fuel.
Common mistakes
- Leaving out depreciation, which is a cost even though no cash leaves your account.
- Forgetting tax, parking, tolls and tires.
- Using the same depreciation rate for a new car and a ten-year-old one.
- Adding loan interest on top of a purchase price you paid in cash, or twice.
Frequently asked questions
What is total cost of ownership?
It is everything a car costs you over the years you keep it: the value it loses plus fuel, insurance, maintenance, tax and fees. A 30,000 car at 15% a year for 5 years loses 16,689 and has 18,000 of running costs, so 34,689 in total.
How is depreciation calculated here?
A constant percentage of the remaining value each year: value after N years = price × (1 − rate)^N. At 15% for 5 years, 30,000 falls to about 13,311. Real cars often lose more in the first year.
Is loan interest included?
No. Interest depends on how you finance the car. Add it to the yearly figures, or compare financing with a loan calculator.
How do I read the cost per kilometre or mile?
It is the total cost divided by all the distance driven. 34,689 over 60,000 km is about 0.578 per km. It falls the more you drive, because depreciation and insurance are spread over more distance.
How much does it cost per month to own a car?
With the default inputs, a 30,000 car kept 5 years costs 34,688.84 in total, which is 6,937.77 a year or 578.15 a month. That is 16,688.84 of depreciation plus 18,000 of fuel, insurance, maintenance and tax.
What is the cost per mile of owning a car?
Set the distance unit to miles. The same 30,000 car driven 10,000 miles a year for 5 years costs 34,688.84 over 50,000 miles, or 0.694 per mile. Driving more lowers the figure because fixed costs are spread out.
How much does a 20,000 car cost to own for 4 years?
At 12 percent depreciation and yearly costs of 1,200 fuel, 800 insurance, 500 maintenance and 200 tax, with 10,000 km a year, the total is 18,806.09. That is 4,701.52 a year, or 391.79 a month.