What this calculator does
This calculator shows the full cost of car ownership over a number of years. It includes purchase price, depreciation, gas, insurance, and maintenance.
The math
Depreciation cost = purchase price × depreciation rate × years. Gas cost = miles ÷ MPG × gas price × years. Total cost = purchase price + gas + insurance + maintenance − remaining value.
Worked example
A $25,000 car driven 12,000 miles per year at 28 MPG, $3.50 gas, $120 insurance, and $75 maintenance over 7 years costs about $48,000 in total ownership.
Why this matters
Big purchases create years of follow-up costs. This calculator helps you weigh the true price before you sign.
Methodology and transparency
This page publishes the exact formula used to compute the result, so you can verify it in a spreadsheet or check the assumptions against your own situation. The worked example uses the tool default inputs; change any number and the result updates live in your browser. No data is sent or stored.
Common questions
Is depreciation really that important?
Yes. New cars can lose 15–25% of value per year, making it the biggest ownership cost.
Should I buy new or used?
Used cars usually have lower depreciation and insurance costs. Run the numbers for both.
How do I reduce ownership cost?
Buy a fuel-efficient, reliable used car, drive fewer miles, and maintain it regularly.