True Cost of Car Ownership Calculator

Understanding the True Cost to Own a Car

The sticker price of a car is just the beginning of its total cost. This calculator is designed to reveal the "true cost of ownership" by estimating all major expenses you'll likely incur over a five-year period. This provides a much more realistic picture of what a car will actually cost you, helping you make a smarter purchasing decision.

How It Works

The calculator sums up several key cost categories, many of which are often overlooked by buyers:

• Depreciation: This is typically the largest expense. It's the amount of value the car loses over time. This calculator uses a simplified estimate (e.g., 50% over 5 years), but real-world depreciation varies by make and model.
• Interest: The total interest paid on your auto loan.
• Insurance: The total cost of insurance premiums over the ownership period.
• Fuel: Calculated based on your annual mileage, the car's MPG, and the price of gas.
• Maintenance: An estimate for routine maintenance like oil changes, tires, and other common repairs over five years.

The Total Cost

By adding these costs together, the calculator provides a comprehensive 5-year total cost, which is then broken down into an average monthly cost. This monthly figure is often significantly higher than the car payment alone, providing a much more accurate number to use for your budgeting and affordability analysis.

Frequently Asked Questions