AM Calculators

True Cost to Own Calculator

See the full 5-year cost of owning a vehicle, broken down by depreciation, insurance, fuel, maintenance, repairs, and taxes.

5-year total cost
$37,260
Annual average
$7,452
Per mile
$0.62
Breakdown
Depreciation$15,68042%
Insurance$7,75021%
Fuel$7,00019%
Maintenance$3,0808%
Repairs$8402%
Taxes & fees$2,9108%

What this estimate covers: 5-year US averages for the inputs you selected. Actual costs vary by specific make, model, your driving conditions, and local rates. Use this for comparison shopping and budgeting, not as a binding number.

A free true cost to own calculator built on real industry averages

Most TCO calculators (Edmunds, Kelley Blue Book) require you to pick a specific make, model, and trim from their database. That works for well-known cars but breaks down for everything else: out-of-database models, used cars with unknown spec, or hypothetical purchases.

Our calculator takes the opposite approach. Plug in the price you would pay, the broad class (economy, mid-range, luxury), fuel type, and driving profile. We apply US 2026 industry-average percentages for each cost category and return the 5-year breakdown.

What the calculator covers

Six cost categories, summed to a 5-year total:

  • Depreciation: 52% (economy), 56% (mid-range), or 65% (luxury) of purchase price over 5 years
  • Insurance: annual cost × 5, scaled by state tier and by 18% for EVs
  • Fuel or electricity: annual miles divided by MPG (or 32 kWh per 100 miles for EVs) times price per gallon or kWh
  • Maintenance: 1.8% (economy), 2.2% (mid-range), 3.2% (luxury) of purchase price per year, 45% lower for EVs
  • Repairs: 0.4 to 0.9 percent of purchase per year, also lower for EVs
  • Taxes and fees: Sales tax on purchase plus annual registration and one-time title fees

What it does NOT include

  • Financing interest. Add 3 to 8 percent of vehicle price for a 5-year loan if you finance. The calculator assumes cash purchase.
  • Parking and tolls. Highly variable by location.
  • Major accidents. If you have an at-fault collision with insurance premium increases, see our accident-adjusted TCO guide for how to factor that in.
  • Diminished value impact. If your car has an accident during ownership, resale value drops 10 to 25 percent. Use our diminished value calculator to model that scenario.

When this calculator is most useful

  • Comparing two vehicles you are considering. Run the calculator twice, once for each, and compare totals.
  • Deciding between new and used. Buying a 3-year-old version of the same car typically reduces 5-year TCO by 25 to 40 percent.
  • Switching from gas to EV. Run both scenarios with the same annual miles. EVs typically come in 5 to 15 percent cheaper over 5 years.
  • Budgeting before a purchase. The per-mile cost is a more honest budget metric than monthly payment alone.

Pair this with our other tools. Before any used car purchase, run the VIN decoder to verify the spec. If you are buying a car with prior damage, use the diminished value calculator to model resale impact. For repair cost projections during ownership, see the car repair cost estimator.

How it works

  1. Step 1

    Enter purchase price

    Include any down payment plus financed amount, before tax. This anchors the depreciation and maintenance calculations.

  2. Step 2

    Pick vehicle class and fuel type

    Economy, mid-range, or luxury changes the maintenance and depreciation multipliers. Gas, hybrid, or EV changes the energy cost.

  3. Step 3

    Set annual miles and insurance tier

    Insurance tier is your state grouping (NY/FL = high, most states = mid, ID/NH/ME = low). Annual miles drives fuel cost.

Frequently asked questions

What is the true cost to own a car?
True cost to own (TCO) is the total expense of owning a vehicle over a fixed period (usually 5 years), including depreciation, insurance, fuel, maintenance, repairs, and taxes. Depreciation is typically the largest component, representing 40 to 55 percent of total TCO.
How accurate is this true cost to own calculator?
It uses US 2026 industry averages for depreciation, insurance, fuel, maintenance, and repair costs by vehicle class and fuel type. Treat it as a planning range. Actual cost depends on your specific make, model, driving conditions, and local rates.
What is depreciation and how is it calculated?
Depreciation is the loss in market value over time. A typical economy car loses 52% of its value over 5 years, mid-range loses 56%, luxury loses 65%. EVs have historically depreciated faster than gas cars but are improving with newer models.
Are EVs cheaper to own than gas cars?
Usually yes over 5 years. EVs have lower fuel costs (electricity is $0.13/kWh vs $3.50/gallon gas), lower maintenance (no oil changes, fewer moving parts), but higher insurance (15 to 20 percent more) and historically faster depreciation. Net: 5-year TCO is typically 5 to 15 percent lower for EVs in most use cases.
Why is my luxury car so expensive to maintain?
Luxury vehicles cost 1.5 to 2x more per year in maintenance because parts are OEM-only, labor rates are higher at certified shops, and the service intervals require dealer-specific tools. Maintenance averages 3.2 percent of purchase price per year for luxury vs 1.8 percent for economy.
Does this calculator include financing costs?
No. Interest on a car loan adds 3 to 8 percent of the vehicle price over 5 years depending on rate and term. For a more complete picture, add your total loan interest to the calculator's output. A 60-month loan at 6.5% on a $28,000 car adds about $4,800 in interest.
Why does my state matter for the calculation?
Insurance cost varies dramatically by state. Florida, New York, Michigan, New Jersey, and Louisiana average $1,900 to $2,500 per year for full coverage. Idaho, New Hampshire, Maine, and Vermont average $900 to $1,200. Most other states sit in the $1,400 to $1,700 range.
Is there a free maintenance cost calculator by car model?
This calculator estimates maintenance cost as a percentage of purchase price based on vehicle class. For model-specific data, services like CarEdge and RepairPal aggregate actual maintenance costs by make and model. Our calculator gives the realistic range for your class, which is usually close enough for planning.
Should I buy used to save on TCO?
Often yes. Used cars have already absorbed the steepest depreciation (typically 20 percent in year 1 and another 30 percent by year 3). Buying a 3-year-old vehicle can reduce TCO by 25 to 40 percent compared to new, because you skip the first-year depreciation hit.
What is a fair per-mile cost for a typical car?
US 2026 average is roughly $0.55 to $0.75 per mile for mid-range vehicles over 5 years (60,000 miles). Economy cars hit $0.45 to $0.60 per mile. Luxury cars hit $0.85 to $1.20 per mile. EVs typically save 10 to 25 percent per mile on energy alone.

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