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.
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
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.
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.
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.
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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.