Vehicle Total Cost of Ownership Calculator

1. Enter the purchase price, years you'll keep it, expected resale value at the end, miles driven per year and fuel economy and the remaining inputs.
2. Optionally add sales tax rate, down payment / trade-in, loan apr and loan term — leave blank to skip.
3. Read the highlighted result first, then the breakdown below it. Load the worked example to check the math by hand.

Total cost of ownership counts only money that is gone at the end: the value the car lost, the tax and interest paid, and every running cost. Loan principal is not counted separately because it buys the car's value, which is already captured by depreciation.

• Depreciation = purchase price − resale value
• Interest = interest paid on (price + tax − down) during the months you own the car
• Fuel = miles per year × years ÷ mpg × fuel price
• Total = depreciation + sales tax + interest + fuel + (insurance + maintenance + registration) × years + parking × months
• Per month = total ÷ months; per mile = total ÷ total miles

Total cost of ownership is the money that is gone when you sell: lost value, tax, interest and running costs. Cost per mile lets you compare vehicles, or check a mileage reimbursement rate against what driving really costs you.

Common mistakes and assumptions

• Adding loan payments on top of depreciation, which double-counts the car's value.
• Using an optimistic resale value. Check listings for the same age and mileage.
• Forgetting insurance differences between models — get quotes.
• Comparing a 3-year and 8-year ownership on total cost instead of cost per year.

A $32,000 car with 6% tax and $5,000 down, financed at 7% for 60 months, kept 5 years and sold for $15,000, driven 12,000 miles a year at 28 mpg and $3.50/gal.

1. 1Depreciation = $32,000 − $15,000 = $17,000; sales tax = $1,920.
2. 2Financed = $32,000 + $1,920 − $5,000 = $28,920; interest over 60 months ≈ $5,440.
3. 3Fuel = 60,000 mi ÷ 28 × $3.50 = $7,500. Insurance, maintenance and registration = $2,750 × 5 = $13,750.
4. 4Total ≈ $45,600, or about $760 a month and $0.76 a mile — well above the $573 loan payment.

What is included in a car's total cost of ownership?

Depreciation, sales tax, financing interest, fuel or charging, insurance, maintenance and repairs, registration and any parking or tolls over the years you keep the vehicle.

Why isn't the loan payment added to the total?

Most of each payment repays principal, which buys the car's value. That value is either still in the car at resale or already counted as depreciation, so adding payments would double-count it. Only the interest portion is a cost.

How do I estimate resale value?

Look up current listings or valuation guides for the same model at the age and mileage you expect to sell. As a rough rule, many vehicles lose 40–60% of their value over five years.

Can I use this for an electric vehicle?

Yes. Enter miles per kWh in the fuel economy field and your electricity price per kWh as the fuel price; the math is the same.

Is keeping a car longer cheaper?

Usually per year, because depreciation slows after the first years. Compare a 5-year and 8-year scenario with higher maintenance to see the trade-off.