TCO Calculator for Vehicles
How much does a car really cost per month?
Reveal the true cost of owning a car, including hidden expenses.
A Practical TCO Calculator
Model full ownership economics with editable assumptions so you can compare vehicles using total cost instead of monthly payment alone.
Use this for
- Comparing ownership cost across price points
- Testing how financing changes long-term cost
- Estimating monthly and annual ownership burden
You will get
- Total ownership cost over your selected horizon
- Monthly and annual TCO breakdown
- Cost split by depreciation, fuel, insurance, and more
Quick Result
Estimated total ownership cost over 5 years
$46,470.31
$774.51 per month
Based on
- • $35,000.00 purchase price
- • 5-year ownership horizon
- • Sedan depreciation profile
- • Financing off (cash purchase)
Vehicle Details
Avg. new car price in 2026: ~$48,000 (industry reports)
Average depreciation
Financing
Monthly Expenses
Avg: $150-250/mo
Avg: $150-200/mo
Avg: $50-100/mo
Registration, etc.
Estimated Total Cost Over 5 Years
$46,470.31
Resale value: ~$15,529.69 (44% retained)
Cost Per Year
$9,294.06
Cost Per Month
$774.51
Depreciation Lost
$19,470.31
Cost BreakdownHow each cost is calculated
$35,000.00 × (1 - 85%^5 years) = $19,470.31 lost value
$175.00/mo × 12 months × 5 years
$150.00/mo × 12 months × 5 years
$75.00/mo × 12 months × 5 years
$50.00/mo × 12 months × 5 years
Methodology: Depreciation uses sedan retention rate of 85%/year based on industry averages. Depreciation differs by make/model, condition, and market demand, so use this as a baseline and refine with model-specific comps.
Visual Breakdown
This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.
Methodology and Trust
Formulas
Depreciation
depreciation = purchasePrice − resaleValue
Operating cost
operatingCost = (fuel + insurance + maintenance + taxes) × 12 × years
Total cost of ownership
totalTCO = depreciation + operatingCost + loanInterest
Monthly TCO
monthlyTCO = totalTCO ÷ (years × 12)
Recommended Next Steps
Continue your journey with these related tools
Understanding Total Cost of Ownership
Key Insights & Concepts
Tip: Use these results as a planning baseline, then compare with model-specific data and local pricing before finalizing a purchase.
Total Cost of Ownership (TCO) represents the full economic impact of owning a vehicle beyond just the purchase price. Understanding TCO can help you make more informed decisions when comparing vehicles or evaluating whether to buy, lease, or use alternatives.
Key Components of TCO
1. Depreciation
Depreciation—the decline in a vehicle's value over time—is typically the largest ownership cost. Several factors influence depreciation rates:
- Vehicle type: Trucks and SUVs often retain value better than sedans; luxury vehicles tend to depreciate faster
- Brand reputation: Some manufacturers have historically better resale values
- Mileage and condition: Lower mileage and excellent condition preserve value
- Market demand: Supply/demand dynamics affect resale prices
Note: This calculator uses average retention rates by vehicle category (80-89% annually). Actual depreciation varies significantly—resources like Edmunds, NADA Guides, and iSeeCars provide model-specific depreciation data.
2. Operating Costs
Fuel / Energy
Varies significantly by fuel efficiency, fuel prices, and annual mileage. The EPA provides estimated annual fuel costs for new vehicles. EVs typically have lower "fuel" costs but may have higher purchase prices.
Insurance
Rates depend on the vehicle, your location, driving history, coverage levels, and insurer. Get quotes before purchasing—some vehicles cost significantly more to insure.
Maintenance
Includes routine service (oil changes, tires, brakes) and repairs. Luxury and European brands often have higher parts and labor costs. EVs typically require less maintenance (no oil changes, regenerative braking extends brake life).
Taxes & Fees
Registration fees, sales tax, property taxes (in some states), emissions testing, and title fees. These vary significantly by state—some states have no sales tax on vehicles while others charge 8-10%.
3. Financing Costs
If you finance your vehicle, interest charges add to your total cost. Key factors include:
- Interest rate (APR): Based on credit score, loan term, and market conditions. As of 2026, new car loan rates average 7-9% (Federal Reserve data).
- Loan term: Longer terms mean lower payments but more total interest paid
- Down payment: Larger down payments reduce the amount financed and total interest
Research resources: For vehicle-specific cost data, consult Edmunds (edmunds.com), Consumer Reports, and the EPA's fuel economy guide (fueleconomy.gov).