How does the Vehicle Ownership Cost Calculator work?
The calculator estimates depreciation as purchase price minus the value you expect the vehicle to have at the end of the ownership period. It calculates energy cost from annual miles multiplied by fuel or charging cost per mile, adds the annual insurance, maintenance, registration and financing/other amounts, then multiplies annual costs by the number of years. Depreciation and operating costs are added for an estimated total ownership cost.
The result also shows average annual cost, average monthly cost and cost per mile over the modeled ownership period. For a single-year per-mile breakdown with more control over annual expense categories, compare the Cost Per Mile Calculator.
Why compare total ownership cost instead of purchase price alone?
CFPB consumer guidance notes that the true cost of a vehicle includes more than the purchase price and monthly payment. Insurance, interest, routine maintenance and other ongoing expenses can materially affect affordability. Depreciation also matters because the vehicle may be worth less when you sell or trade it. The Car Depreciation Calculator can model future value separately before you bring that assumption into an ownership comparison.
Two vehicles with similar purchase prices can have very different ownership costs because of efficiency, insurance, maintenance and resale value.
How should you estimate the annual inputs?
Use your own insurance quote, expected registration and tax amounts, maintenance budget and financing costs when available. For fuel cost per mile, divide fuel price by MPG; for an EV, multiply kWh per mile by electricity price per kWh. The Fuel Cost Calculator and EV Charging Cost Calculator can help build those assumptions.
Keep the assumptions consistent with the same annual mileage and ownership period.
What does this ownership-cost estimate not include?
Unexpected repairs, parking, tolls, collision deductibles, taxes on a future sale, opportunity cost of cash and transaction-specific fees are not automatically included. Residual value is also uncertain. Use several scenarios instead of treating one result as a precise forecast.
Frequently asked questions about Vehicle Ownership Cost
The calculator includes modeled depreciation, fuel or charging, insurance, maintenance, registration/taxes and financing or other annual costs that you enter.
Purchase price minus the estimated vehicle value at the end of the ownership period.
Divide expected price per gallon by expected MPG. For example, $3.50 per gallon divided by 28 MPG is $0.125 per mile.
Multiply kWh used per mile by electricity price per kWh, or divide electricity price by miles per kWh.
Be careful not to double-count. Depreciation already represents vehicle value consumed; financing cost should generally reflect interest and fees rather than the full principal when doing an economic-cost analysis.
Not automatically. You can add recurring amounts to the other cost assumption if you want them included.
A higher end value means less modeled depreciation, while a lower end value increases ownership cost.
No. It is a scenario based on the assumptions entered. Actual repair costs, resale value, insurance and energy prices can change.
Sources and methodology
The calculator uses the formulas described on this page and user-entered assumptions. These authoritative U.S. resources provide context for the related vehicle, fuel, charging, finance or safety topic.