What is the true cost of owning a car?

Beyond the sticker price + monthly payment, the true cost of owning a car includes depreciation (usually the single largest line), fuel, auto insurance, routine maintenance, tire replacement, registration and taxes, parking/tolls, and optional warranty coverage. For most US drivers, the all-in monthly ownership cost is 1.6×–2.2× the loan-payment portion alone. This calculator surfaces the five biggest categories so you can see the real number before signing.

How much does car ownership cost per month?

AAA's most recent national average put all-in monthly ownership costs for a new vehicle at roughly $1,000/month — driven primarily by depreciation, insurance, fuel, and maintenance. Used vehicles run materially lower (depreciation already partly absorbed). Use the sliders above to model your specific vehicle, miles, and ZIP-relevant insurance level.

What expenses should I include when buying a car?

When evaluating affordability, plan for: (1) loan payment if financing; (2) auto insurance — varies widely by ZIP, vehicle, driver; (3) fuel based on your annual miles + the vehicle's MPG; (4) routine maintenance (oil, brakes, tires, fluids); (5) registration + state taxes; (6) optional warranty or service contract; (7) parking + tolls in dense metros. Skip any of these and you'll under-budget by 30–50%.

Is insurance included in total ownership cost?

Yes — auto insurance is the second-largest line for most owners after depreciation. We include it explicitly in this calculator (the 'Annual insurance' slider). National averages run $1,700–$2,400/year for full-coverage policies, but your number can swing 2–3× higher or lower depending on state, ZIP, vehicle, driver, and credit profile. Run the Auto Insurance Cost Estimator to get a tighter ballpark for your situation.

How does depreciation affect ownership costs?

Depreciation is the silent killer. A typical $35,000 vehicle loses 45–55% of its value over 5 years — that's $15,750–$19,250 you'll never see again. It's larger than 5 years of fuel + insurance + maintenance combined for the average driver. The fastest way to cut TCO is to buy a 2–3-year-old vehicle (first-owner depreciation already absorbed) or pick models with above-average residual value (Toyota, Honda, Subaru, certain pickups).

How can I reduce my total car ownership expenses?

The five highest-leverage moves: (1) buy used or pick high-residual-value models — directly attacks the depreciation line; (2) shop insurance annually — premium markets reprice every 12 months, your carrier may not still be the cheapest; (3) refinance the loan if APR has dropped or your credit improved; (4) extend ownership to 8–10 years — dilutes depreciation across more months; (5) pick a higher-MPG model if you drive 12k+ miles/year. Use the contextual calculator links below to model each move.

Does this include loan interest?

No. TCO traditionally excludes financing interest because terms vary so widely (cash buy vs. 0% APR vs. 9% subprime). To include it, run the same loan in our Auto Loan Calculator and add the 'Total interest' figure on top.

How accurate are the maintenance estimates?

We use $800/year for the first 3 years (mostly oil changes, brake pads, and basic upkeep) and $1,400/year for years 4-5 (when timing belts, batteries, and bigger services tend to land). German luxury vehicles run 1.5–2× higher. Toyota / Honda / Mazda run ~30% lower.

Set fuel cost to ~$0.50/gal-equivalent (electricity cost at 15¢/kWh ÷ ~3 miles/kWh × 30 'EV-MPG' converts roughly to that). Maintenance is ~40% lower (no oil changes, fewer brake replacements due to regen). Residual is the wildcard — Tesla holds value better than legacy EVs.

Why does owning longer lower the per-month TCO?

Depreciation is front-loaded — the biggest drop is in year 1. Stretching ownership to 7-10 years dilutes that initial cliff over more months. Maintenance climbs but rarely fast enough to offset the depreciation savings.

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What does your car actually cost you over 5 years?

The sticker price is only ~50–60% of what you'll really spend. Move the sliders to see the full 5-year cost — and where most of the money goes.

Purchase price$35,000

Ownership length5 years

Annual miles12,000

Fuel economy (MPG)28 MPG

Fuel price$3.50/gal

Annual insurance$1,800/yr

5-year residual %45%

In plain English

Over 5 years, your $35,000 car will cost you about $41,750 all-in — roughly $696 per month. Depreciation alone is $19,250 (~46%). You'll spend $7,500 on fuel and $9,000 on insurance.

Total 5-year cost

$41,750

Per month (all-in)

$696/mo

Where your money goes

Depreciation$19,250 (46%)

Fuel$7,500 (18%)

Insurance$9,000 (22%)

Maintenance$5,200 (12%)

Tires$800 (2%)

Excludes loan interest, registration fees, parking, and any optional extras (warranty, GAP, accessories). Add ~$200–500/yr for registration + plates depending on state. Run your loan in the Auto Loan Calculator if you want to layer financing interest on top.

Connected calculators

One number leads to the next.

Affordability sets your budget. Loan math sets your payment. Insurance + total cost set your real monthly. Move between any of them in one click.

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Auto Loan Calculator

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Auto Refinance Savings Calculator

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Car Affordability Calculator

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Insurance Cost Estimator

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Auto Insurance Increase Calculator

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Trade-In Value Estimator

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Related guide

How to lower your monthly car cost

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What does your car actually cost you over 5 years?

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Common questions

What is the true cost of owning a car?

How much does car ownership cost per month?

What expenses should I include when buying a car?

Is insurance included in total ownership cost?

How does depreciation affect ownership costs?

How can I reduce my total car ownership expenses?

Does this include loan interest?

How accurate are the maintenance estimates?

What about EVs?

Why does owning longer lower the per-month TCO?