Cost of Ownership Calculator
Estimate your true annual cost of owning a car — fuel, insurance, maintenance, and depreciation all included.
Total Cost of Ownership
Purchase + Running + Depreciation
How It Works
True cost of ownership includes the often-overlooked depreciation — the largest single cost of owning a new car. This tool combines all major cost categories into an annual and monthly total.
How to Use This Calculator
- Enter the car's purchase price.
- Enter the expected annual depreciation rate (15% is a common average for used cars).
- Enter your estimated annual fuel cost — or use our Fuel Cost Calculator first.
- Enter annual insurance premium.
- Enter estimated annual maintenance cost. Click Calculate.
Worked Example
Reference Table
| Cost Category | Typical Annual Cost | Notes |
|---|---|---|
| Depreciation | $2 000–8 000 | 15–25% of value per year for new cars |
| Fuel | $1 500–4 000 | Depends on economy and km driven |
| Insurance | $800–2 500 | Age, location, driving record |
| Maintenance | $500–2 000 | Service, tyres, wear items |
| Registration | $100–800 | Varies by state/country |
| Parking/tolls | $0–3 000 | City drivers can pay significantly more |
Frequently Asked Questions
What annual depreciation rate should I use?
New cars typically depreciate 15–25% in year 1, then 10–15% per year thereafter. Luxury vehicles often depreciate faster (20–30%). Some EVs have depreciated rapidly; others have held value well. 15% is a conservative mid-cycle estimate.
Why is depreciation the largest ownership cost?
For a $30 000 new car at 20% first-year depreciation, you lose $6 000 in value in 12 months — often more than the combined fuel, insurance, and maintenance costs. Many buyers underestimate this because it is not a cash payment.
Should I include tyres in the maintenance estimate?
Yes — a set of quality tyres costs $400–1 200 and typically lasts 3–5 years. Amortized, that is $80–400 per year. Include this in the maintenance figure for an accurate lifetime cost.
How do I compare total ownership cost between two different cars?
Run this calculator for both cars with the same annual distance assumption. The car with lower total cost over your planned ownership period is the better financial choice, regardless of sticker price.
