True Auto Ownership Cost Calculator
The sticker price is just the beginning. The true cost of auto ownership includes depreciation (typically the largest component), insurance, fuel, maintenance and repairs, registration and taxes, and financing charges. This calculator assembles all six cost categories into a single total, annual, monthly, and per-mile cost figure — so you can compare vehicles on a true apples-to-apples basis, not just monthly payment.
| Category | Cost | Share |
|---|---|---|
| Depreciation | $20,000 | 46.0% |
| Insurance | $7,500 | 17.2% |
| Fuel | $7,000 | 16.1% |
| Maintenance | $4,000 | 9.2% |
| Financing | $4,000 | 9.2% |
| Registration & taxes | $1,000 | 2.3% |
| Total | $43,500 | 100% |
View the TypeScript implementation on GitHub: packages/calc/src/auto-ownership-cost.ts · view tests
What this means
Every car has two prices: the one on the window sticker and the one you actually pay over the years you own it. The second number is almost always two to three times the first, and it is the only one that matters when you are choosing between vehicles. A $32,000 car that holds its value and sips fuel can cost less to own than a $26,000 car that depreciates hard and guzzles — the cheaper sticker hides the more expensive car.
In my experience the single most underweighted line is depreciation. It never shows up on a monthly statement, so buyers fixate on the payment and ignore the value quietly draining out of the asset the moment it leaves the lot. On a typical $35,000 new car held five years, depreciation alone runs $17,000–$20,000 — bigger than insurance, fuel, and maintenance combined for most drivers. The chart above sorts the categories largest-first for exactly this reason: the biggest bar is usually depreciation, and that is the lever with the most leverage. Buy a model with strong residuals, or buy two-to-three years used and let the first owner eat the steepest part of the curve.
I’ve found the next two lines people underestimate are fuel and insurance. A 25 MPG commuter at 15,000 miles a year and $3.75/gallon burns about $2,250 in fuel annually — more than $11,000 over five years — and a younger driver or a higher-trim car can push insurance past $2,000 a year without anyone noticing until renewal. The per-mile number at the top is the honest summary: it folds all six categories into one figure you can sanity- check against the IRS standard mileage rate. If your true cost per mile sits well above the IRS blend, you are operating an expensive car — useful to know before you sign.
Worked example
Take a $35,000 sedan bought new, financed with $4,000 of total loan interest, and held 5 years to an estimated $15,000 resale value. It is driven 12,000 miles a year, rated at 30 MPG, with fuel at $3.50/gallon. Insurance runs $1,500/year, maintenance and tires $800/year, and registration and taxes $200/year.
Depreciation is $35,000 − $15,000 = $20,000. Insurance is $1,500 × 5 = $7,500. Maintenance is $800 × 5 = $4,000. Registration & taxes is $200 × 5 = $1,000. Fuel is (12,000 ÷ 30 × $3.50) × 5 = $1,400 × 5 = $7,000. Add the $4,000 of financing and the total five-year cost is $43,500.
Divide it down: $8,700 per year, $725 per month, and $0.725 per mile. Notice the shape: depreciation ($20,000) is 46% of the whole thing — nearly half — while the registration line most people fret over is barely 2%. The headline payment on this car might be $550/month, but the true monthly cost of owning it is $725. That $175 gap, every month, is the value the sticker price never shows you.
Frequently asked questions
The information and tools on this website are for general educational purposes only and do not constitute financial, investment, legal, or tax advice. Consult a licensed professional for decisions specific to your situation.