What is included in the total cost of ownership calculation?

Our TCO calculator includes the purchase price, financing costs, fuel/electricity costs, insurance, maintenance, depreciation, and any additional fees over a 5-year period.

How accurate are the depreciation estimates?

Depreciation estimates are based on industry averages. Luxury vehicles typically depreciate 50-60% over 5 years, while economy cars may retain 35-45% of their value.

Should I include insurance and maintenance in my car budget?

Absolutely! Insurance and maintenance typically add 15-25% to your total ownership costs. Our calculator helps you see the true monthly and annual costs beyond just the car payment.

5-Year Total Cost of Ownership Calculator - True Car Ownership Costs

Vehicle MSRP/Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (years)

Fuel Efficiency (MPG/MPGe)

Miles Driven Per Year

Fuel Type

Fuel Cost ($/gallon or $/kWh)

Annual Insurance ($)

Annual Maintenance ($)

5-Year Depreciation Rate (%)

Typical: Economy cars 35-45%, Luxury 50-70%

Annual Registration/Fees ($)

Embed This Calculator on Your Website

Add this calculator to your website with just a few lines of code.

                        <!-- CarCalcPro: Embed -->
<div
  data-carcalcpro-embed
  data-calculator="cost-of-ownership"
  data-theme="light"
  data-width="100%"
  data-height="640"
></div>

<p class="carcalcpro-credit" style="font:12px/1.4 system-ui,sans-serif;margin:6px 0 0;display:inline-block">
  Powered by
  <a href="https://www.carcalcpro.com/?utm_source=embed&utm_medium=referral&utm_campaign=widgets"
     target="_blank" rel="noopener">CarCalcPro</a>
</p>

<script async src="https://carcalcpro.com/js/embed-widget.js"></scr` + `ipt>

<noscript>
  <a href="https://www.carcalcpro.com/cost-of-ownership-calculator.html">Use the CarCalcPro 5-Year Total Cost of Ownership Calculator</a>
</noscript>
                    

View Embed Terms

Understanding Total Cost of Ownership

The true cost of car ownership goes far beyond the monthly payment. Our TCO calculator helps you see the complete financial picture.

Why TCO Matters More Than Monthly Payment

While a $400 monthly payment might seem affordable, the total cost of ownership could be $800+ per month when you factor in fuel, insurance, maintenance, and depreciation. Our calculator reveals the hidden costs that make or break your car budget.

Understanding TCO helps you compare different vehicles fairly. A more expensive car with better fuel economy and lower maintenance might actually cost less over 5 years than a cheaper car with poor efficiency.

Key Components of Car Ownership Costs

Financing Costs: Interest payments and loan fees over the term
Fuel/Electricity: Based on your driving habits and local fuel prices
Insurance: Varies by vehicle type, your driving record, and location
Maintenance: Regular service, repairs, and unexpected issues
Depreciation: The biggest hidden cost - how much value your car loses
Registration & Fees: Annual costs to keep your car legally on the road

How to Use TCO for Better Car Decisions

Compare multiple vehicles using the same assumptions (miles driven, fuel costs, etc.) to see which truly costs less to own. Consider the total monthly cost, not just the car payment.

Use TCO to negotiate better deals. If a dealer offers a lower interest rate, you can see exactly how much that saves over 5 years. The same goes for extended warranties, maintenance packages, and other add-ons.

Real-World TCO Examples

Economy Car: $25,000 purchase, 35 MPG, $1,200 insurance, $600 maintenance = ~$0.45 per mile over 5 years

Luxury SUV: $60,000 purchase, 20 MPG, $2,000 insurance, $1,500 maintenance = ~$0.85 per mile over 5 years

Electric Vehicle: $45,000 purchase, 120 MPGe, $1,500 insurance, $400 maintenance = ~$0.55 per mile over 5 years

Related Tools

Car Affordability Calculator — Set a realistic budget before calculating TCO
Buy vs Lease Calculator — Compare total costs of both options
Auto Loan Calculator — Calculate financing costs for your TCO analysis
Car Lease Calculator — Estimate lease costs for comparison
All Calculators — Complete collection of auto finance tools

Related Use Cases

First-Time Buyer Guide — Budget planning and total cost considerations
Lease vs Buy Comparison — Total cost analysis for both options
Buy vs Lease Break-Even — Find when buying becomes cheaper

More Resources

Home — Explore all our auto finance tools and resources
Use Cases — Step-by-step guides for common scenarios

5-Year Total Cost of Ownership Results