The complete estimate
What total cost of car ownership includes
This calculator adds depreciation, financing interest paid while you own the vehicle, energy, insurance, maintenance and repairs, registration and recurring taxes, one-time costs and any other annual costs you enter.
The Consumer Financial Protection Bureau advises buyers to account for longer-term costs such as maintenance, gas and insurance—not only the advertised vehicle price or monthly loan payment.
Planning reference: CFPB guidance on how much car you can afford.
Avoid double counting
Why loan principal is not added to ownership cost
Loan principal pays for the vehicle itself. The calculator represents the portion of that vehicle value used while you own it as purchase price minus expected resale value. It therefore adds financing interest, but not principal payments, to the economic ownership-cost total.
The separate monthly loan payment is a cash-flow figure. It may be higher or lower than average monthly ownership cost, and a remaining balance may still need to be paid when the vehicle is sold.
Worked example
A $35,000 vehicle kept for five years
Suppose the vehicle is worth $18,000 after five years. It is driven 12,000 miles per year, averages 30 mpg and uses $3.50-per-gallon fuel. The owner finances $31,500 for 60 months at 6.5% APR and enters annual insurance, maintenance and registration estimates.
The live example includes $1,800 annual insurance, $900 annual maintenance, $450 annual registration and $2,500 in one-time costs. Replace every estimate with quotes or records for the vehicle and location you are evaluating.
The largest assumptions
Use realistic resale and recurring costs
Ownership estimates are most sensitive to the numbers you enter. Research an expected resale value for the exact vehicle, use an insurance quote, and review service history or maintenance schedules instead of relying on a generic average.
- Depreciation: purchase price minus expected resale value.
- Energy: annual miles divided by mpg and multiplied by fuel price, or annual miles multiplied by kWh per 100 miles and electricity price.
- Financing: interest from the estimated amortization schedule during the ownership period.
- Recurring costs: insurance, repairs, maintenance, registration, taxes, parking and other entered expenses.
Compare the same scenario
How to compare two vehicles fairly
Use the same ownership period and annual mileage for both vehicles, but vehicle-specific resale, insurance, maintenance and efficiency estimates. The U.S. Department of Energy’s vehicle cost tool and AAA’s methodology likewise compare ownership categories rather than focusing only on price.
Method references: U.S. Department of Energy Vehicle Cost Calculator and AAA Your Driving Costs methodology.
Scope and limitations
What this estimate does not predict
The calculator does not predict market value, repairs, insurance premiums, taxes, fuel prices or electricity rates. It uses the values you provide and assumes recurring annual costs stay constant. Actual loan timing and lender rounding may also differ.
This is an educational planning estimate, not a vehicle valuation, loan offer, tax calculation or individualized financial advice.