Car Total Cost of Ownership Calculator
Find out what a car really costs to own, not just its sticker price. Add financing, your mileage and fuel or electricity price, and your own insurance, maintenance and registration costs to see the total, the cost per mile and per month, and a year-by-year breakdown.
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What you expect to sell or trade it for.
Repairs usually rise as a car ages.
How to use the Car Total Cost of Ownership Calculator
- Enter the price, sales tax and fees, and the share of the price you expect to get back when you sell.
- Tick Financed if you use a loan and enter the down payment, APR and term.
- Enter how long you will keep the car and how many miles you drive each year.
- Pick gasoline or electric and enter efficiency and energy price.
- Fill in your insurance, maintenance and registration costs, then press Calculate cost.
How total cost of ownership is calculated
TCO = depreciation + sales tax & fees + loan interest + fuel + insurance + maintenance + registration
- Depreciation = purchase price − resale value. The yearly table spreads it with a constant yearly percentage decline, so the first years lose the most value.
- Fuel per year = annual miles ÷ mpg × price per gallon (or miles ÷ mi/kWh × price per kWh for an EV).
- Loan interest uses the standard amortized payment: P × r ÷ (1 − (1 + r)−n), with r = APR ÷ 12.
- Cost per mile = TCO ÷ (annual miles × years). Cost per month = TCO ÷ (years × 12).
Example: a $32,000 car kept 5 years and sold for 50% loses $16,000 in value. At 12,000 miles a year, 30 mpg and $3.50 a gallon, fuel is $1,400 a year, or $7,000 in total.
Fuel cost per year at 12,000 miles
| Fuel economy | $3.00 / gal | $3.50 / gal | $4.00 / gal |
|---|---|---|---|
| 20 mpg | $1,800 | $2,100 | $2,400 |
| 25 mpg | $1,440 | $1,680 | $1,920 |
| 30 mpg | $1,200 | $1,400 | $1,600 |
| 40 mpg | $900 | $1,050 | $1,200 |
| 50 mpg | $720 | $840 | $960 |
For an electric car at 3.5 miles per kWh, 12,000 miles uses about 3,429 kWh: roughly $549 a year at $0.16 per kWh.
Frequently asked questions
What is included in the total cost of ownership of a car?
Depreciation (the value the car loses), loan interest, sales tax and purchase fees, fuel or electricity, insurance, maintenance and repairs, and registration. Parking, tolls and cleaning can be added to the maintenance field if they matter to you.
Why is depreciation counted instead of the purchase price?
When you sell or trade in the car you get part of the price back. The money you really lose is the price minus the resale value, so that difference is the ownership cost. The total cash you spend before selling is shown separately.
How is the cost per mile calculated?
Total cost of ownership ÷ total miles driven. For example $30,000 over 5 years and 60,000 miles is $0.50 per mile.
What resale percentage should I use?
It varies by make, model, mileage and market. Many new cars keep roughly 40% to 60% of their value after five years, but check current listings for the same model and age to pick a realistic number.
How is loan interest handled if I sell before the loan ends?
Only the interest charged during the years you own the car is counted. Any remaining balance is principal that you repay from the sale proceeds, so it is not an extra cost.
Can I compare an electric car with a gas car?
Yes. Run the calculator once with Electric and once with Gasoline using each car's price, efficiency, insurance and expected resale value, then compare the cost per mile.
Is this financial advice?
No. It is an estimate based on the numbers you enter. Insurance quotes, fuel prices and repair costs vary a lot, so use your own figures where you can.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.