Loans
True Cost of Car Ownership Calculator
Buyers compare monthly payments; owners pay for depreciation, fuel, insurance, maintenance and interest. Over five years the payment is rarely half the total, and the largest single cost — depreciation — never appears on a statement.
Tested against worked examplesHow we verify
Typically 15–20% a year after a steep first-year drop.
Miles per gallon. For an EV, use the MPGe and an equivalent energy price.
Total cost over 5 years: $47,398
Total cost over 5 years
$47,398
Everything you spend, less what you get back when you sell.
Depreciation is 41% of what this car costs you. Keeping a car longer, or buying one two or three years old, attacks the biggest line here far more effectively than shopping for a lower rate.
- Cost per month
- $790
- Cost per mile
- $0.79
- Depreciation
- $19,470
- Loan interest
- $5,642
- Fuel
- $7,286
- Insurance
- $9,000
- Maintenance
- $4,500
- Estimated resale value
- $15,530
The figure to compare against a lease or a transit pass.
The largest cost, and the one nobody sends you a bill for.
Compare scenariosTry three values of one input
| Purchase price | |||
|---|---|---|---|
| Total cost over 5 years | $45,165 | $47,398+$2,233 | $50,376+$5,211 |
| Cost per month | $753 | $790+$37 | $840+$87 |
| Cost per mile | $0.75 | $0.79+$0.04 | $0.84+$0.09 |
| Depreciation | $17,801 | $19,470+$1,669 | $21,695+$3,894 |
| Loan interest | $5,078 | $5,642+$564 | $6,394+$1,317 |
| Estimated resale value | $14,199 | $15,530+$1,331 | $17,305+$3,106 |
Every other input stays at the value you set above — currently $35,000 for purchase price. Differences are measured against the first column.
Saved scenariosSave this calculation
Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.
How this calculator works
Resale value is the purchase price declining at the annual rate you set, compounded over the years held; depreciation is the difference. Loan interest is accrued month by month on the declining balance for the months you actually hold the car, capped at the loan term. Fuel is miles ÷ mpg × price per gallon; insurance, maintenance and fees are annual figures multiplied by the years.
A constant depreciation rate is a simplification — real curves are steepest in year one and flatten later, and they vary widely by model. Maintenance is treated as level when it rises with age. Sales tax on purchase, parking, tolls and financing gaps are not included, so treat the total as a floor.
What this assumes
- Estimates for insurance, fuel, maintenance and registration, entered by you. All four vary by vehicle, driver and location.
- Depreciation is included where entered and is usually the largest single cost — and the one nobody budgets.
- Repairs are modelled as an average. Real repair costs arrive in lumps, not monthly instalments.
What changes this number
- Depreciation
- Larger than fuel and maintenance combined for most newer cars, and invisible until you sell.
- Insurance
- Varies by a factor of several between drivers and postcodes for an identical car.
- Fuel efficiency
- Compounds with your annual mileage, so it matters far more to a long commuter than to an occasional driver.
A worked example
Take the $35k new car over 5 years scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Purchase price
- $35,000
- Down payment
- $5,000
- Loan APR
- 7%
- Years you will keep it
- 5 years
- Annual depreciation
- 15%
What it returns
- Total cost over 5 years
- $47,398
- Cost per month
- $790
- Cost per mile
- $0.79
- Depreciation
- $19,470
- Loan interest
- $5,642
Depreciation is 41% of what this car costs you. Keeping a car longer, or buying one two or three years old, attacks the biggest line here far more effectively than shopping for a lower rate.
Try an example
Frequently asked questions
What does it really cost to own a car?
Far more than the payment. On a $35,000 car kept five years, depreciation alone commonly runs $19,000 — more than fuel, insurance and maintenance combined. Add interest and the total is usually well above what the monthly payment implies.
Why is depreciation the biggest cost?
Because it is a real transfer of wealth that no one invoices. A new car loses roughly 20% in the first year and 15% a year after that. You feel it only at trade-in, by which point it is spent. This is the whole argument for buying a two- or three-year-old car.
How much should I budget for maintenance?
Around $0.06–$0.10 a mile for a modern car, so $700–$1,200 a year at 12,000 miles, rising sharply past 100,000 miles. Tyres, brakes and a timing belt are not emergencies — they are scheduled costs that arrive whether or not you saved for them.
Is it cheaper to keep a car longer?
Usually, yes. Depreciation slows in absolute terms while the purchase cost spreads over more years, and once the loan ends the interest stops. Repairs rise, but rarely fast enough to overtake a new car's depreciation. The cheapest car is often the one you already own.
How does this compare to a lease?
A lease charges you depreciation plus a finance charge, with no resale value at the end. Compare the monthly figure here against a lease payment for the same car — ownership usually wins over a long hold, and leasing can win over a short one.
This calculator helps answer
Related calculators
Car Depreciation Calculator
See what a car will be worth in a few years. Project its value as it depreciates and how much of your money the drop in value quietly costs.
Auto Loan Calculator
Car payment with the real numbers: sales tax, fees, trade-in credit — even negative equity. See the monthly payment and the true total cost.
Lease vs. Buy Car Calculator
Compare leasing a car against buying one over the same period — total out-of-pocket cost, the resale value you keep when buying, and which is cheaper.
EV vs Gas Car Cost Calculator
Compare what electricity costs against gasoline for the same miles, and find out how long a higher EV sticker price takes to pay back in fuel savings.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.