Cost Calculator AI
Cars & Vehicles5-Year TCO

Total Car Ownership Cost Calculator

Calculate the comprehensive 5-year total cost of owning any car, truck, or SUVโ€”combining depreciation, loan financing interest, fuel/charging, insurance, maintenance, and registration.

5-Year Ownership Parameters

5-Year Total Cost to Own
Total 5-Year Ownership Cost
$43,514.80

Monthly Average: $725.25 / month

Depreciation Loss (45%)$15,750.00
Loan Financing Interest$4,864.80
5-Year Fuel Expense$7,500.00
5-Year Auto Insurance$8,000.00
5-Year Maintenance & Repairs$4,000.00
5-Year Registration & Taxes$1,500.00
Cost Per Mile Driven$0.725 / mile

5-Year Total Cost of Ownership Formula

Total Ownership Cost = Depreciation Loss + Financing Interest + 5-Year Fuel + 5-Year Insurance + 5-Year Maintenance + 5-Year Taxes & Fees
  • Depreciation Loss: Vehicle Purchase Price minus projected resale value at the end of year 5.
  • Financing Interest: Total cumulative finance charges paid across the auto loan amortization term.
  • Fuel / Electricity: (Annual Miles / Fuel Economy) ร— Price per Unit ร— 5 Years.
  • Insurance & Upkeep: Summed comprehensive/collision insurance and scheduled maintenance over 60 months.

Step-by-Step Worked Example

Scenario: Owning a $36,000 crossover SUV driven 12,000 miles/year for 5 years

Calculation Steps:

  1. 5-Year Depreciation (45%) = $16,200 loss in vehicle value
  2. Total Auto Loan Interest = $5,188
  3. 5-Year Fuel Expense = (60,000 miles / 26 MPG) ร— $3.50 = $8,077
  4. 5-Year Insurance & Upkeep = ($1,600 + $850) ร— 5 = $12,250
  5. 5-Year Registration Fees = $300 ร— 5 = $1,500
  6. Total 5-Year Cost = $16,200 + $5,188 + $8,077 + $12,250 + $1,500 = $43,215
Result: The vehicle costs $43,215 to own over 5 years, which averages $720.25 per month or $0.72 per mile driven.

How to Use This Calculator

  1. 1Enter the negotiated vehicle purchase price and your planned down payment.
  2. 2Specify annual mileage driven and local fuel or electricity prices.
  3. 3Input anticipated annual insurance and maintenance allowances.
  4. 4Review the itemized percentage breakdown and cost per mile.

Assumptions & Limitations

  • Assumes standard 45% depreciation over 5 years based on historical automotive resale trends.
  • Assumes regular scheduled maintenance without catastrophic uninsured mechanical failure.

Frequently Asked Questions

Why is depreciation considered an out-of-pocket ownership cost?

While you do not write a monthly check for depreciation, it represents real lost wealth. When you sell or trade in the car, you receive substantially less cash than you paid, directly impacting your net worth.

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