Start with credible inputs
Use local prices, realistic annual distance, expected resale value, financing terms and an ownership period long enough to compare alternatives fairly.
SPEND LESS / FIRE LEVEL 1-3
Car total cost of ownership calculator.
Estimate the true cost of owning a car beyond the purchase price: depreciation, financing, parking, fuel or electricity, tax, insurance and maintenance.
ESTIMATED TOTAL COST OF OWNERSHIP
$49,229Over 5 years, excluding the recoverable resale value from cash paid.Average ownership cost$820 / monthEconomic ownership cost: depreciation, financing interest and recurring running costs. Loan principal is shown in the table, not counted twice as a cost.
Cash paid during ownership$67,699Includes the down payment, loan payments and running costs
Estimated resale value$18,471After modelled depreciation
Financing interest paid$3,199Loan remaining at sale: $0
YEAR BY YEAR
Where the car costs you money.
Economic ownership cost: depreciation, financing interest and recurring running costs. Loan principal is shown in the table, not counted twice as a cost.
DepreciationLoan interestFuel / electricityParkingTaxInsurance + maintenance
Annual ownership breakdown
| Year | Depreciation | Loan interest | Fuel / electricity | Parking | Tax | Insurance + maintenance | Ownership cost | Loan payment | Cash paid |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $4,200 | $1,104 | $1,800 | $1,200 | $600 | $2,300 | $11,204 | $4,640 | $25,540 |
| 2 | $3,696 | $886 | $1,800 | $1,200 | $600 | $2,300 | $10,482 | $4,640 | $10,540 |
| 3 | $3,252 | $654 | $1,800 | $1,200 | $600 | $2,300 | $9,807 | $4,640 | $10,540 |
| 4 | $2,862 | $408 | $1,800 | $1,200 | $600 | $2,300 | $9,171 | $4,640 | $10,540 |
| 5 | $2,519 | $147 | $1,800 | $1,200 | $600 | $2,300 | $8,566 | $4,640 | $10,540 |
| Total | $16,529 | $3,199 | $9,000 | $6,000 | $3,000 | $11,500 | $49,229 | $23,199 | $67,699 |
This is a planning illustration, not a quote. It excludes purchase transaction fees and opportunity cost, assumes flat running costs, and applies one declining-balance depreciation rate. Real resale value, repairs, insurance, energy prices and taxes can differ materially.
HOW TO READ THIS
Price is one payment.
Ownership is a system.
The chart treats depreciation as an economic cost and loan principal as a cash movement, so the same purchase is not counted twice. Use the result to compare vehicles or transport choices with consistent assumptions, not as a resale, insurance or repair quote.
CAR OWNERSHIP GUIDE
Understand your true vehicle cost.
What is total cost of ownership?
Total cost of ownership is the full cost of using a vehicle over time, not just its purchase price. It can include depreciation, financing, fuel or electricity, tax, insurance, parking and maintenance.
Why is depreciation included?
Depreciation is the value a vehicle loses while you own it. Treating that loss as a cost gives a more realistic comparison between buying, keeping and replacing a car.
Can I compare two cars with this calculator?
Yes. Use consistent assumptions for ownership period, annual distance and cost categories, then compare the annual and total results for each vehicle.
Does this include every real-world cost?
No calculator can predict every repair or resale outcome. Use the result as a structured estimate and update the assumptions with local prices and your own driving pattern.
CAR TOTAL COST OF OWNERSHIP CALCULATOR EXPLAINED
What is the true annual cost of owning a car?
The real cost of a car includes depreciation, financing, insurance, tax, parking, energy and maintenance—not only the purchase payment.
How to interpret the calculator result
Read the result in context
Separate cash paid from economic cost. Loan principal changes where your money is held, while depreciation measures value lost over time.
Turn it into a decision
Compare annualized totals for keeping, replacing and avoiding a car, then consider time and convenience that the calculator cannot price.
COMMON QUESTIONS
Questions about this car total cost of ownership calculator.
What costs are usually forgotten when buying a car?
Depreciation, financing interest, parking, tax, insurance and irregular maintenance are often underestimated compared with fuel and the monthly payment.
Is buying a cheaper car always cheaper overall?
Not always. Reliability, financing, energy use, insurance and resale value can change the total, so compare all categories over the same ownership period.
EVIDENCE SNAPSHOT
What this tool is built on.
Car Total Cost of Ownership. Estimates vehicle ownership cost across depreciation, financing, energy, tax, insurance, parking and maintenance.
This is implementation evidence, not professional certification. Assumptions and limits matter more than a badge. Correction policy.
- Model version
- 1.0
- Last reviewed
- Evidence basis
- Published formulas using your inputs
- Data status
- No live feed; results change only with your inputs
- Decision sensitivity
- Planning aid
CITE THIS TOOL
Let readers return to the same version.
This citation includes the tool name, model version, review date and stable URL. Citation does not imply Rich2Fire endorses third-party content.
Rich2Fire. (2026). Car Total Cost of Ownership (model version 1.0, reviewed 2026-10-10). https://rich2fire.com/tools/car-total-cost-of-ownership