Cost of Car Ownership CalculatorTrue Cost to Own a Car — Per Year, Month & Mile
Total cost of ownership = depreciation + loan interest + fuel + insurance + maintenance + repairs + registration.
Add up everything a car really costs — depreciation, loan interest, fuel, insurance, maintenance, registration and repairs — to see the true cost of ownership per year, per month and per mile, and how it compares with the IRS mileage rate.
Car, loan & running costs
About 40–45% after 5 years is typical.
Over 5 years and 60,000 miles. Loan balance left at sale: $0 vs. resale value $15,960.
Above the 76¢ IRS rateWhere the money goes
Ownership cost breakdown
| Cost | Total | Per year | Share |
|---|---|---|---|
| Depreciation | $22,040 | $4,408 | 42.9% |
| Fuel | $6,857 | $1,371 | 13.4% |
| Insurance | $9,000 | $1,800 | 17.5% |
| Loan interest | $6,206 | $1,241 | 12.1% |
| Maintenance | $4,500 | $900 | 8.8% |
| Repairs | $1,500 | $300 | 2.9% |
| Registration | $1,250 | $250 | 2.4% |
| Total | $51,354 | $10,271 | 100% |
What is the true cost of owning a car?
Total cost of ownership = depreciation + loan interest + fuel + insurance + maintenance + repairs + registration. For a $38,000 car kept 5 years and driven 12,000 miles a year, that adds up to about $51,354 — roughly $856 a month, or $0.86 per mile. Depreciation is the biggest piece.
This is the main calculator in our Car Buying & Ownership calculators. Go deeper with the Car Depreciation Calculator and the Car Affordability Calculator.
How to calculate the cost of owning a car
Enter price and loan
Purchase price, down payment, APR and term.
Estimate resale value
What percentage of the price the car will be worth when you sell.
Add driving and fuel
Miles per year, MPG and gas price.
Add yearly costs
Insurance, maintenance, registration and a repair allowance.
Total cost of ownership formula
Loan interest = interest paid during the years you own the car
Fuel = miles per year ÷ MPG × gas price × years
Fixed yearly costs = (insurance + maintenance + registration + repairs) × years
Total = depreciation + interest + fuel + fixed costs
Cost per mile = total ÷ total miles driven
For a sharper resale estimate use the Car Depreciation Calculator, and measure your real MPG with the Gas Mileage Calculator.
Example: a $38,000 car over five years
| Cost | Calculation | 5-year total |
|---|---|---|
| Depreciation | $38,000 × 58% | $22,040 |
| Loan interest | $33,000 at 7% for 60 months | $6,206 |
| Fuel | 12,000 ÷ 28 × $3.20 × 5 | $6,857 |
| Insurance | $1,800 × 5 | $9,000 |
| Maintenance | $900 × 5 | $4,500 |
| Repairs | $300 × 5 | $1,500 |
| Registration | $250 × 5 | $1,250 |
| Total | $51,354 |
That’s $10,271 a year, $856 a month and $0.86 per mile — matching the calculator’s defaults.
How your cost compares with the IRS mileage rate
The 2026 IRS business standard mileage rate — 72.5 cents per mile for January to June and 76 cents from July 1 — is based on an annual study of the fixed and variable costs of operating a vehicle. If your cost per mile is well below that, you’re driving a relatively economical car or keeping it a long time; if it’s above, depreciation, financing or insurance are probably the reason.
Driving for work? The Mileage Reimbursement Calculator shows what the IRS rate would pay back for the same miles.
How to lower the cost of owning a car
- Buy slightly used to skip the steepest first-year depreciation.
- Keep it longer — depreciation slows as the car ages.
- Shop your insurance every year or two and raise deductibles if you have savings.
- Get a lower APR through a credit union pre-approval.
- Choose an efficient model; fuel is often the second-largest running cost.
Related calculators
Cost of Car Ownership Calculator FAQs
It depends on the car, but adding depreciation, fuel, insurance, maintenance, interest and registration often comes to many thousands of dollars a year for a new car. The default example here comes to about $10,300 a year.
For newer cars, depreciation is usually the largest cost, followed by fuel and insurance.
Divide your total cost of ownership by the total miles you’ll drive while you own it.
It’s a reasonable national benchmark for business driving, based on fixed and variable operating costs. Your own cost may be higher or lower.
Only the interest. The principal repays the car’s price, which is already captured by depreciation and resale value.
Buy used, keep the car longer, choose a fuel-efficient model, shop insurance and secure a low loan rate.
Owing more on the loan than the car is worth. The calculator warns you if the remaining balance at sale would exceed the resale value.
Refinancing to a lower APR, shopping your insurance and raising deductibles are often the fastest wins. Over the long term, keeping the car longer spreads depreciation over more miles.
About the developer
Manzoor Ahmad
Web Designer & Calculator Developer · 13+ years of web development and SEO experienceI’m a professional pharmacist turned tech geek, and I designed and coded this cost of car ownership calculator myself. I made sure it doesn’t double-count loan payments and depreciation — a common mistake in ownership calculators — and the worked example shows every line.
Found a number that looks wrong, or want a feature added? Tell me through my author page — corrections are fixed and re-dated.
Sources
- Consumer Financial Protection Bureau — Auto loans: key terms and shopping tips
- Internal Revenue Service — Standard mileage rates
- U.S. DOE & EPA — FuelEconomy.gov
- Federal Trade Commission — Buying a new car
Disclaimer: This is an estimate based on your inputs. Actual depreciation, insurance, repairs and fuel costs vary by vehicle, location and driving habits. Not financial advice.
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