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Car Cost of Ownership Calculator

A car costs far more than its sticker price. Add up depreciation, fuel, insurance and upkeep to see the true cost per year and per mile.

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Total cost of ownership
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Compare cars by total cost to own

Learn more

Depreciation is the hidden cost

The biggest cost of owning a car usually isn’t gas — it’s depreciation, the value it loses while you own it. Add fuel, insurance, maintenance and fees and the true cost per mile is eye-opening, and a great way to compare two vehicles fairly.

How it’s calculated & sources

Depreciation = purchase price − resale value. Running costs = (fuel + insurance + maintenance + fees) × years. Total = depreciation + running costs; per-mile divides by total miles.

Benchmark: AAA pegs average new-car ownership near $12,000/year, or about $0.80/mile (AAA Your Driving Costs, 2024).

Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.

Worked example

A $35,000 car worth $15,000 after 5 years loses $20,000 to depreciation; with $4,700/year of running costs, total ownership is about $43,500 — roughly $0.73/mile over 60,000 miles.

Frequently asked questions

Why include resale value?

Because you get it back when you sell — only the drop from purchase to resale is a real cost. A car that holds value can be cheaper to own despite a higher price.

Does buying used lower the cost per mile?

Often yes — letting someone else absorb the steep first-year depreciation usually lowers your cost per mile, provided reliability is good.