True Cost to Own Calculator
Add up what a car actually costs to own — not the sticker price, but the five-year total once you count depreciation, financing, fuel, insurance, maintenance and fees. Enter the price and a few details and this calculator returns the real number, broken down per year, per month and per mile.
Depreciation is almost always the biggest line and the one buyers forget, because no one sends you a bill for it. This tool makes it visible alongside every other cost, so two cars with the same payment can be compared on what they truly cost to keep.
Calculator
5-year true cost to own
$65,192
$13,038 per year · $0.97 per mile
Per month
$1,087
Loan payment
$961
Resale value
$26,950
Depreciation
$22,050
Amount financed
$47,940
Total miles
67,500
Where your money goes over the years
- Depreciation$22,050 · 34%
- Fuel / energy$10,004 · 15%
- Insurance$10,490 · 16%
- Maintenance & repairs$6,000 · 9%
- Loan interest$9,697 · 15%
- Taxes & fees$6,950 · 11%
Defaults use national averages (AAA, EIA, FHWA); change any field to match your situation. Depreciation is an estimate — a specific model can hold value better or worse.
Calculation Formulas
The six ownership buckets summed over the years you keep the car. Depreciation is the purchase price minus the estimated resale value at the end of the period.
Resale value is modeled with an elevated first-year drop (default 20%) and a steady decline after, calibrated to a 5-year loss (default 45%).
Example:
A $40,000 car retaining 55% after 5 years is worth about $22,000, so depreciation ≈ $18,000 — usually the single largest cost.
P is the amount financed, r is the monthly rate (APR ÷ 12), and n is the term in months. This is the standard fixed-rate loan formula U.S. lenders use.
Energy cost scales with how much you drive, your efficiency, and local fuel price.
Key Figures
| Figure | Value | Description |
|---|---|---|
| Avg. annual cost (new) | ~$12,000/yr | AAA Your Driving Costs, 15,000 mi/yr average across vehicle types. |
| Default mileage | 13,500 mi/yr | Approx. U.S. average per driver (FHWA). |
| First-year depreciation | ~20% | Typical new-vehicle first-year value loss. |
Note: Results are estimates for planning purposes. Rates, fees, taxes, and insurance vary by lender and location — confirm exact figures with a licensed professional before making financial decisions.
Standards & Sources
Last verified: November 2026
- AAA — Your Driving Costs
The framework and category breakdown for vehicle ownership cost; AAA reported an average above $12,000/yr for a new vehicle in 2025.
- Truth in Lending Act (TILA)
Lenders must disclose APR, the figure used here for the financing cost; compare offers on APR, not the advertised rate.
How to use this calculator
- Enter the vehicle price, your down payment or trade-in, and the loan APR and term.
- Set how many years you plan to keep it and how many miles you drive each year.
- Adjust fuel (MPG and gas price), insurance, maintenance and annual fees — or keep the national-average defaults.
- Read the five-year total cost with its per-year, per-month and per-mile breakdown and the category split.
Frequently Asked Questions
What is included in the true cost to own a car?
Six buckets: depreciation (the value the car loses), loan interest, fuel or electricity, insurance, maintenance and repairs, and taxes and fees. Depreciation is usually the largest and the one buyers overlook.
Why is depreciation the biggest cost?
A new car typically loses around 20% of its value in the first year and close to half within five years. You never get a bill for it, but it is real money — the gap between what you paid and what the car is worth when you sell.
How much does the average car cost per year to own?
AAA has reported an average above $12,000 a year to own and operate a new vehicle driven 15,000 miles. Your number depends heavily on the car, your mileage, and your insurance and fuel costs.
Does a cheaper car always cost less to own?
No. A low sticker price can hide fast depreciation, poor fuel economy, or high insurance and repair costs. Comparing the five-year total cost — and the cost per mile — is the only way to know.
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