5-Year Cost of Ownership Calculator
Add up depreciation, fuel, insurance, maintenance, fees and loan interest to see the true 5-year cost of owning a car.
How it works
Depreciation = price − resale · Running costs = (insurance + fuel + maintenance + fees) × 5 · Total = depreciation + running costs + loan interest
The sticker price is only part of what a car costs. True cost of ownership adds depreciation (the value you lose), the recurring costs of insurance, fuel, maintenance and registration, and the interest you pay to finance it. Depreciation is usually the largest and most invisible line because it is not a monthly bill — spreading everything across five years exposes the real cost of driving.
Worked example
A $35,000 car worth $15,000 after five years loses $20,000 to depreciation. Add $1,500 insurance, $1,800 fuel, $800 maintenance and $300 fees each year — $22,000 over five years — plus $4,000 of loan interest. Total is $46,000, about $9,200 a year or $767 a month.
Frequently asked questions
What is the biggest cost of owning a car?
For most newer cars it is depreciation — the value lost over time — which often exceeds fuel and insurance combined. Because it is not billed monthly, owners routinely underestimate it until they sell or trade in.
How do I lower total cost of ownership?
Buy a model that holds value well (limiting depreciation), keep the car longer to spread that loss over more years, shop insurance annually, and stay on top of maintenance to avoid large repairs. Paying cash or a low APR cuts the interest line.
Should I include the purchase price itself?
No — using the full price would double-count. Depreciation (price minus resale value) already captures the portion of the purchase you do not get back, which is the true cost of the vehicle over your ownership period.
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Educational estimate only — real costs vary by lender, insurer, location and driving habits. Not financial advice.