The price on the window sticker is only part of what a car costs. This total cost of ownership (TCO) calculator adds up depreciation, loan interest, fuel, insurance, maintenance, taxes and fees to show what your car really costs per year, per month and per mile.
- Total over ownership $0
- Per month $0
- Per mile $0
Estimate. Depreciation = price minus resale value. Interest counts only what you pay while you own the car.
What Goes Into the Total Cost of Owning a Car?
| Cost | What it is | Tip |
|---|---|---|
| Depreciation | The value the car loses while you own it; usually the largest cost | Buying lightly used and keeping cars longer reduces it |
| Loan interest | Finance charges you pay while you own the car | A bigger down payment and a shorter loan cut interest |
| Fuel or charging | Miles driven ÷ fuel economy × fuel price | Efficient cars and EVs cost less to fuel |
| Insurance | Annual premiums | Get quotes before you buy |
| Maintenance and repairs | Oil changes, tires, brakes and repairs | Follow the maintenance schedule |
| Taxes and fees | Sales tax at purchase plus yearly registration | Varies widely by state |
How Much Does It Cost to Own a Car on Average?
AAA’s 2026 Your Driving Costs study estimated the average cost of owning a new vehicle at $12,863 a year, or about $1,072 a month, assuming 15,000 miles a year over five years, for vehicles with an average price of about $39,400. AAA also found that for medium sedans, electric models cost more per year to own than gas equivalents, mainly because of higher depreciation, fees and finance charges, even though charging cost much less than fuel.
How to Use This Calculator
- Enter the price, how long you plan to keep the car, and its expected resale value.
- Add your down payment, loan APR and term (use 0 months if you pay cash).
- Enter miles per year, fuel economy and your local fuel price.
- Add insurance, maintenance and yearly registration costs.
- Compare different cars by changing the numbers; the breakdown shows where the money goes.
Ways to Lower Your Cost of Ownership
- Keep your car longer; depreciation slows as cars age.
- Choose models with strong reliability and resale value.
- Shop insurance every year or two.
- Keep tires properly inflated and follow maintenance intervals.
- Pay cash or put more down to avoid interest.
Related guides: compare the most reliable car brands, weigh leasing vs buying, and see a maintenance schedule by mileage.
Cost of Ownership FAQ
What Is Total Cost of Ownership for a Car?
It is everything a car costs while you own it: depreciation, loan interest, fuel, insurance, maintenance, repairs, taxes and fees, not just the purchase price.
How Much Does It Cost to Own a Car per Year?
AAA’s 2026 study put the average for a new vehicle at $12,863 a year, based on 15,000 miles a year over five years. Your costs depend on the car, where you live and how you drive.
What Is the Biggest Cost of Owning a Car?
For new cars, depreciation is usually the largest single cost.
Are Electric Cars Cheaper to Own?
They usually cost much less to fuel, but AAA found higher depreciation, fees and finance charges can make some EVs more expensive overall. Compare specific models.
How Do I Calculate Cost per Mile?
Divide the total cost of ownership by the total miles driven while you own the car.
Does Paying Cash Lower the Cost of Ownership?
Yes, it removes loan interest, although you give up the use of that cash for other purposes.