How to use the total cost of ownership calculator
- Choose miles or kilometres and your fuel-economy unit at the top.
- Enter how long you will keep the car and how far you drive each year.
- Enter the car price, fuel economy and fuel price, and set the depreciation rates.
- Add yearly insurance, maintenance, registration and fees, and parking or tolls if you pay them.
- Untick the loan if you pay cash; otherwise enter the down payment, APR and term.
How the total is worked out
Fuel = distance per year × fuel used per distance × price × years
Yearly costs × years for insurance, maintenance, fees and parking
Interest = loan payments made during those years − principal repaid
Per month = total ÷ (years × 12); per mile or km = total ÷ total distance
Depreciation is a real cost even though no bill arrives: it is the value you give up by owning the car. The breakdown table shows each cost per year and in total, so you can see where the money goes.
Worked example
A $35,000 car kept for 5 years and 12,000 miles a year at 28 MPG, fuel at $4.354, insurance $2,000, maintenance $900 and fees $300 a year, bought with $5,000 down on a 7% 60-month loan, losing 20% then 15% a year:
- Depreciation: $35,000 − $14,616.17 = $20,383.83; fuel: 12,000 ÷ 28 × $4.354 × 5 = $9,330.00.
- Insurance $10,000.00, maintenance $4,500.00, fees $1,500.00 and loan interest $5,642.16.
- Total: $51,355.98 over 5 years, or $10,271.20 a year.
- That is $855.93 a month and $0.86 per mi; the biggest cost is Depreciation (40%).
Tips for using the result
- Compare cars on cost per mile or km. It puts a cheap car with high running costs and a dearer car with low running costs on the same scale.
- Get real insurance quotes. Insurance varies hugely by driver, postcode or zip code and car, and it can change the answer.
- Plan for tyres and big services. Average them into the yearly maintenance figure rather than forgetting them.
- Keeping a car longer lowers the yearly cost. Depreciation slows as the car ages and the loan is paid off.
- Remember the down payment. Cash put into a car could have earned interest elsewhere; the calculator leaves that out, so treat its total as a floor rather than a ceiling.
US, UK and Canada differences
In the US, registration fees and personal property taxes vary by state, and insurance is often the second-largest cost. In the UK, add vehicle excise duty (road tax), an MOT test for cars over three years old, and any congestion or clean-air zone charges under fees or parking. In Canada, licence plate fees and insurance differ by province, and winter tyres are a common extra cost.
Metric units and other countries
In kilometre mode, fuel economy is in L/100 km or km/L and the result is given per kilometre. In Pakistan and other markets with yearly token tax and comprehensive insurance priced as a share of the car’s value, enter those as yearly fees and insurance. Every price starts empty outside the five preset regions. Where fuel prices change monthly, use an average of recent months rather than today’s price.