Money ManagementETF vs Mutual Fund: Which Is Better for Beginners?
ETF vs Mutual Fund: Which Is Better for Beginners? Explore costs, tax implications, and trading flexibility for informed investment decisions.
MAJun 11, 2026Read More →
Total Cost of Ownership Calculator
See what a car really costs once you add depreciation, financing, fuel, insurance and upkeep. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Where the money goes
Depreciation$20,000 (41%)
Fuel$7,500 (16%)
Insurance$8,000 (17%)
Maintenance$4,500 (9%)
Financing interest$5,219 (11%)
Other$3,000 (6%)
Advertisement
How total cost of ownership works
The price on the window is only the start. Over the years you own a car you also pay for the value it loses, the interest on any loan, the fuel it burns, insurance, routine maintenance and costs like registration. Adding these together gives the true cost of ownership, and the breakdown above shows which pieces dominate.
For most owners, depreciation is the single largest expense, followed by fuel and insurance. Seeing the split helps you focus on the costs that actually move the needle, such as choosing a model that holds its value or one that sips less fuel.
A quick example
Buy a $35,000 car, sell it for $15,000 after five years, and depreciation alone is $20,000. Add roughly $7,500 in fuel, $8,000 in insurance and $4,500 in maintenance, plus financing, and the real cost is well over $40,000, or more than $8,000 a year.
Things to keep in mind
Estimates depend on accurate resale and fuel assumptions, so revisit them as prices change. For fuel economy data you can trust, see the official figures at FuelEconomy.gov. You can also weigh leasing versus buying with our other free calculators.
Frequently asked questions
What is total cost of ownership for a car?
Total cost of ownership is the full amount you spend to own and run a vehicle over a set period, not just the sticker price. It includes depreciation, financing interest, fuel, insurance, maintenance and recurring costs like registration. It is the most honest way to compare two cars.
Why is depreciation usually the biggest cost?
Depreciation is the difference between what you paid and what the car is worth when you sell it. Most cars lose a large share of their value in the first few years, so for many owners depreciation outweighs fuel, insurance and maintenance combined.
How is cost per mile calculated?
Cost per mile divides the total cost of ownership by the total miles you drive over the ownership period. It is a useful single number for comparing vehicles or deciding whether a longer commute is worth it.
Does a cheaper car always cost less to own?
Not always. A cheaper car can have higher fuel use, pricier insurance or faster depreciation that erases the lower purchase price. Running the full ownership cost, as this calculator does, often changes which option is actually cheaper.
Related guides
View all →
Business FinanceHow Much Will $1,000 Invested Today Be Worth in 10 Years?
Invest $1,000 today and the answer to "what's it worth in 10 years?" ranges from about $1,040 in a basic savings account to roughly $2,594 at the stock market's long-run average. Here's the math behind every scenario — plus how inflation, fees and taxes change the real number.
MAJun 9, 2026Read More →
Business FinanceHow Much Do You Need to Retire Comfortably? (2026 Guide)
There's no single magic number for retirement — but there are proven formulas that get you close. Using the 4% rule, most people need roughly 25 times their annual spending invested. Here's how to find your personal target, factoring in Social Security, healthcare, inflation and lifestyle.
MAJun 9, 2026Read More →
Advertisement