Example 1
- Purchase 22,000, down 4,000
- 5 years, fuel 1,800 a year
- Resale 9,000
≈ payment below all-in cost
A lower payment is misleading: depreciation and yearly costs give a higher monthly all-in.
TCO · more than the monthly payment
True cost of car ownership calculator
Type purchase, resale, ownership years, and yearly lines. A 22,000 purchase and 9,000 resale is 13,000 of value loss over 5 years, or 2,600 a year from the drop alone. The loan payment is not the whole bill. This is an estimate from your amounts, not multi-path TCO.
Depreciation = purchase minus resale, counted once. Interest only for months you own the car. Fuel is a yearly amount. The wider model lives on full car TCO.
Result
Enter purchase price and ownership years, then estimate. Presets fill in a few typical examples.
What counts as the true cost of a car?
We add depreciation, loan interest for the months you own the car, and running costs times years. At a 22,000 purchase and 9,000 resale the drop is 13,000 for the whole hold. Loan principal is not added again beside that drop. Fuel, insurance, service, taxes, and parking are multiplied by ownership years.
Example 1: purchase 22,000, down 4,000, 5 years, fuel 1,800 a year, resale 9,000. The payment looks low against all-in, because 13,000 of loss and 1,800 × 5 = 9,000 of fuel sit beside interest. Example 3: purchase 9,000, down 9,000, service 1,400, resale 3,500. A cheap buy is eaten by service and a low end value.
Example 5: purchase 65,000, 3 years, resale 42,000. A 23,000 drop over 36 months is a steep per-month line. Example 6: purchase 15,000 with no loan, 7 years, service 1,800, fuel 2,400. With no interest, yearly costs (4,200 × 7) can outrun the drop alone if resale is not typed very low.
Fields are purchase price, down payment, APR, loan years, ownership years, annual mileage, annual fuel or charging cost, insurance, service, taxes, parking, and resale. Mileage is only for cost per kilometer or mile. It does not scale fuel: 1,800 stays 1,800 even if you type a different odometer.
Flagship TCO has economy times price and more finance paths. Here fuel is an amount you type. Percent-rate depreciation lives on its own card. Leasing vs loan compares payments, not this all-in. Crashes and insurance discounts sit outside the model.
Type 22,000 and 9,000 at 5 years, click Calculate, and read 13,000 of loss in the breakdown. Zero parking or tax is fine when you do not pay them. When you quote monthly all-in, call it an estimate from your inputs, not an appraiser value.
How to use
- Type purchase price, for example 22,000, and optionally down payment, APR, and loan years.
- Set ownership years, for example 5, and annual mileage, which only feeds cost per km or mile.
- Type yearly costs: fuel or charging (for example 1,800), insurance, service, taxes, parking.
- Type expected resale, for example 9,000. Depreciation is 22,000 − 9,000 = 13,000.
- Compare all-in with the payment alone and with full TCO if you need economy times price.
Value loss and loan APR on this ownership bill
Purchase minus resale counted once, plus yearly lines. A 22000 purchase and 9000 resale is 13000 of value loss over 5 years, 2600 a year from the drop alone.
- APR
- Loan APR % , interest only for months you own the car. The payment on 22000 with 4000 down is not the whole all-in after 13000 of value loss.
- resale
- Value at the end. 9000 after a 22000 purchase leaves 13000 of loss. 3500 after a 9000 purchase eats the cheap-car gap.
- depreciation
- Purchase minus resale, once. 22000 − 9000 = 13000 over 5 years. Not multi-path TCO with a separate L/100 fuel line.
How the estimate works
Depreciation = purchase price − resale value (not added twice).
Interest = amortized loan interest during ownership months (not principal).
Running costs = fuel + insurance + maintenance + taxes + parking, × ownership years.
TCO = depreciation + interest + running costs.
Limits: no crash claims, fuel-price swings, precise resale markets, or local insurance discounts. A practical consumer estimate: not an appraisal.
Example profiles
Example 2
- Purchase 45,000
- Higher fuel and insurance
- 6 years of ownership
≈ heavier depreciation
A higher purchase price and fuel give a jump in monthly cost versus a compact.
Example 3
- Purchase 9,000, down 9,000
- Service 1,400
- Resale 3,500
service ≈ eats the cheap buy
A cheap purchase looks less obvious when service and a low resale eat the gap.
Example 4
- Purchase 38,000
- Fuel 400 a year
- 6 years
fuel ≈ a small slice of TCO
Low energy cost helps, but depreciation still comes out as the main line.
Example 5
- Purchase 65,000
- 3 years, resale 42,000
- Higher insurance
depreciation ≈ steep per month
A short hold on a high price gives steep depreciation per month of ownership.
Example 6
- Purchase 15,000, no loan
- 7 years, service 1,800
- Fuel 2,400
running costs ≈ above depreciation
With no interest, yearly running costs come out larger than depreciation on a long hold.
Example 7
- Purchase 28,000
- Parking 2,400 a year
- Lower mileage
parking ≈ a second insurance
High parking gives a yearly line in the same neighborhood as insurance, even at shorter distances.
Example 8
- Purchase 32,000, down 2,000
- Loan 7 years, hold 4
- APR 9%
interest ≈ higher than a short loan
A long loan and an early sale still charge interest for the months you own, without paying off all principal here.
FAQ
How much depreciation at a 22,000 purchase and 9,000 resale?
13,000 for the whole hold, counted once. Over 5 years that is 2,600 a year from the drop alone, before fuel and insurance.
Is the payment the whole cost?
No. Payment principal overlaps depreciation. All-in adds interest for ownership months and the yearly lines.
Does mileage change the 1,800 fuel line?
No. Fuel is a yearly amount. Mileage divides TCO per kilometer or mile and does not rewrite 1,800.
How is this different from full car TCO?
That page has more paths and economy times price. Here you type fuel as a ready amount. Both are estimates, not appraisals.
What if I sell before the loan ends?
Interest runs only for ownership months. Remaining principal is not added again beside the drop.
Does a 4,000 down payment cut the 13,000 drop?
No. The drop is purchase minus resale. Down payment cuts loan principal and interest, not 22,000 − 9,000.
How do I show a paid-off car?
Set down payment equal to purchase, or leave APR and loan years empty, as in example 3 with 9,000 / 9,000. You keep the drop and the yearly lines.
Does a cheap 9,000 always beat 22,000?
No. Example 3 with service 1,400 and resale 3,500 shows repairs eating a cheap buy.
What if purchase price is blank?
The calculator does not build TCO and does not fill 22,000 from the example. Purchase and ownership years must be typed.
Is parking 2,400 a year like a second insurance line?
In example 7, yes: 2,400 sits beside insurance even at lower mileage. Type zero when you do not pay it.
Knowledge sources
Use, cost or emissions come from your numbers. Below are FuelEconomy.gov, EPA and SI terms.
Page updated in 2026.