5-Year Total Cost of Ownership
Calculate the true 5-year total cost of owning any vehicle — depreciation, fuel, insurance, maintenance, financing, and taxes combined. The MSRP is rarely the real cost; TCO tells you what the car will actually drain from your wallet.
5-Year Cost of Ownership
Total 5-year cost across depreciation, financing, fuel, insurance and maintenance.
How It Works
Five cost categories drive TCO. Depreciation is the largest (40–60% of TCO over 5 years for most cars). Fuel is second. Insurance varies wildly by driver profile but is usually third. Maintenance and financing round out the picture. EVs invert this — depreciation higher, fuel much lower.
How to Use This Calculator
- Enter purchase price, down payment, loan term, and APR.
- Enter estimated annual miles and combined MPG (or kWh/100mi for EV).
- Enter local gas price and annual insurance estimate.
- The calculator returns total 5-year cost and per-mile cost.
- Compare two vehicles side-by-side using the comparison mode.
Worked Example
Reference Table
5-year TCO ranges for typical buyers driving 15 000 miles per year in average-cost states (US). High-cost insurance states (FL, MI, LA, NY) push these higher; low-cost states (ME, ID, VT) pull them lower.
| Vehicle class | 5-yr TCO range | $/mile |
|---|---|---|
| Compact sedan (Civic, Corolla, Sentra) | $32k–40k | $0.43–0.55 |
| Midsize sedan (Camry, Accord, Altima) | $38k–48k | $0.51–0.64 |
| Compact SUV (CR-V, RAV4, Forester) | $42k–52k | $0.56–0.69 |
| Midsize SUV (Highlander, Pilot, Pathfinder) | $48k–60k | $0.64–0.80 |
| Full-size pickup (F-150, Silverado, Ram) | $55k–75k | $0.73–1.00 |
| Compact EV (Bolt, Leaf, Kona EV) | $32k–42k | $0.43–0.56 |
| Midsize EV (Model 3, Ioniq 5, Mach-E) | $40k–55k | $0.53–0.73 |
| Luxury sedan (3-series, A4, C-class) | $55k–75k | $0.73–1.00 |
| Performance / sport (M3, AMG, RS) | $80k–120k | $1.07–1.60 |
Frequently Asked Questions
What’s the biggest hidden cost of car ownership?
Depreciation. A new $35k car loses $15k–$22k in value over 5 years — far more than fuel, maintenance, or insurance. Buying 2–3 years used eliminates the steepest depreciation years.
Are EVs cheaper to own than gas cars?
Usually yes — 20–35% lower total cost over 5 years if you can charge at home. Public-only charging erases most of the savings. Federal and state EV incentives ($7 500 federal + state credits) tip the math further toward EVs.
How much should I budget for car maintenance per year?
Years 1–3: $300–600/yr (oil, tires, brakes). Years 4–7: $700–1 200/yr (timing belt, transmission service). Years 8+: $1 200–2 500/yr (suspension, fuel pump, AC repairs).
Is leasing cheaper than buying for TCO?
Pure cash terms, no. Leasing has a higher per-month cost but a lower upfront cost. Over 5 years buyers come out ahead — the car is paid off and you own an asset. Lease only if you want a new car every 3 years and don’t care about equity.
How do I lower my car insurance?
Raise your deductible from $250 to $1 000 (saves 15–25%). Drop comp/collision on cars worth under $4 000. Bundle with home/renters. Take a defensive-driving course (5–10% in many states). Compare 3 carriers every 12 months — loyalty discounts rarely beat competitive quotes.
