True Cost-to-Own Calculator
By Mustafa Bilgic · Updated 21 August 2026
The true cost to own a car goes far beyond the sticker price or monthly payment. Enter your fuel, insurance, maintenance, and depreciation estimates above to see the full annual ownership figure. This page breaks down each cost category so nothing catches you off guard at year-end.
All figures are illustrative defaults. Replace them with your actual quotes, fuel prices, and mileage for an accurate ownership estimate.
What True Cost-to-Own Includes
Ownership cost falls into five buckets: depreciation, fuel, insurance, maintenance and repairs, and financing (interest). Depreciation is usually the largest, eating 15-25% of a new car's value in the first year alone. Fuel is the most visible daily expense, but insurance premiums and routine services like oil changes and tire rotations add up quietly. The calculator above totals all five categories into a single annual figure so you can compare vehicles on a fair basis. A sedan that costs $5,000 less to buy might actually cost more over five years if it burns premium fuel and carries higher insurance premiums. Seeing the full picture before purchase prevents that kind of surprise.
Estimating Depreciation Accurately
Depreciation is the gap between what you paid and what the car is worth when you sell it. New vehicles lose value fastest: roughly 20% in year one, then 10-15% per year after that. By year five, many cars retain only about 40% of their original MSRP. Trucks and certain SUVs tend to hold value better, while luxury sedans and EVs with rapidly evolving tech can depreciate faster. To estimate your own number, look up the current resale value of a similar vehicle that is one model year older. The difference approximates this year's depreciation. Enter that figure in the calculator. Used-car buyers benefit here because someone else already absorbed the steepest part of the curve.
Fuel and Insurance: The Recurring Pair
Fuel cost depends on three things: miles driven per year, the vehicle's real-world MPG, and the price per gallon in your area. Divide your annual miles by MPG, then multiply by local fuel price. A driver covering 12,000 miles in a 28 MPG car at $3.50 per gallon spends about $1,500 a year. Switch to a 22 MPG truck and that jumps to roughly $1,900. Insurance is harder to predict because it varies by driver age, location, coverage level, and vehicle model. Request quotes for the specific car you are considering rather than guessing. Enter those real quotes above for an accurate total. Together, fuel and insurance often account for 30-40% of annual ownership cost.
Maintenance, Repairs, and the Hidden Costs
Scheduled maintenance (oil, filters, brakes, tires) runs roughly $700-$900 per year on an average sedan, rising with vehicle age. After the factory warranty expires, repair costs climb because out-of-pocket brake jobs, suspension work, and electrical fixes land squarely on you. Extended warranties can offset some of that risk, but factor in the warranty's own cost. Registration fees, property tax on vehicles (in states that charge it), and parking or toll costs are often overlooked. None of them appear on the purchase contract, yet they recur every year. Add each line item you can estimate into the calculator. Even a rough number is better than zero, because ownership decisions made on incomplete data tend to favor flashier, more expensive vehicles.
Frequently asked questions
How is true cost to own different from a monthly payment?
A monthly payment covers only the loan principal and interest. True cost to own adds depreciation, fuel, insurance, maintenance, registration, and other recurring expenses. Two cars with identical payments can differ by thousands per year in total ownership cost.
Which cost category is usually the largest?
Depreciation. A new car can lose 20% of its value in the first year. Over five years, depreciation often exceeds all other ownership costs combined, which is why buying a two- or three-year-old vehicle saves significant money.
Should I include my down payment in the calculation?
The down payment reduces your loan balance and therefore your interest cost, but it does not change depreciation or operating expenses. Enter the amount you actually financed, and the calculator will handle the interest portion correctly.
Does an EV have a lower true cost to own?
It depends. EVs save on fuel and have fewer moving parts to maintain, but battery depreciation can be steep and insurance premiums are often higher. Enter your own electricity rate and local insurance quote to see how the numbers compare for your situation.