Five years in a paid-off commuter
Purchase $12,000 cash, insurance $1,100/yr, fuel $1,400/yr at 12,000 mi, maintenance $600/yr, resale $4,500 after 5 years → total cost and cost-per-mile show whether keeping it beats a new payment.
Financial
Car Ownership Cost Calculator
Add up purchase or loan cost plus annual insurance, fuel, and maintenance you provide, minus your resale estimate over the years you will keep the vehicle. No built-in depreciation guesses.
What this calculator is for
Sticker price is a fraction of ownership. A cost of car ownership calculator adds purchase or finance cost plus insurance, fuel, and maintenance you supply, over the years you will keep the car, minus resale value you expect at the end.
No built-in depreciation curve — you enter resale so the result stays honest for your market (trucks hold value; luxury sedans may not).
A good outcome: cost per mile and total five-year (or custom) cost to compare a paid-off Camry vs a new financed SUV.
Calculator
How to use this calculator
- Choose financed or cash purchase and enter your numbers.
- Enter annual insurance, fuel, and maintenance — use your actual bills, not guesses from the tool.
- Enter how many years you will keep the car and your resale estimate at the end.
Use the same miles per year you actually drive — 8,000 vs 18,000 changes fuel and per-mile cost dramatically.
Resale should reflect private party or trade-in you realistically expect, not peak COVID pricing on used trucks.
Finance path includes total of payments; cash path uses purchase price only — do not double-count down payment in both columns.
The math: do it without a calculator
Total = Finance or cash cost + (Insurance + Fuel + Maintenance) × Years − Resale
Cost per mile = Total ÷ (Miles per year × Years)
We do not estimate depreciation or resale — you supply resale so the result stays factual for your situation.
Total = finance or cash + (annual operating × years) − resale. Cost per mile = total ÷ (miles/year × years).
Does not include parking, tolls, tickets, or opportunity cost of capital.
Real-world examples
Troubleshooting & fine-tuning your setup
True Cost of Ownership Higher Than the Spreadsheet
This tool only counts what you enter — repairs, tires, and registration spikes on older cars are easy to under-budget. Resale guesses that are too high make ownership look cheaper than reality.
Finance cost should include total interest, not just payment × months if you paid off early.
Frequently asked questions
Car Ownership Cost FAQs
What is a good cost per mile for a used car?
Varies widely; $0.35–$0.55/mile all-in is common on mainstream used cars over 5 years — luxury and trucks run higher.
Should I include depreciation if I entered resale?
Resale at the end already captures depreciation as a subtraction — do not also subtract market value separately.
Is insurance higher on financed cars?
Lenders require full coverage, which costs more than liability-only on paid-off older cars.
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Pair this calculator with these related tools in the garage — same session, no signup.