5-Year True Cost of Car Ownership Calculator
Example: Purchase price: 35000 $ · Resale value after 5 years: 16000 $ · Miles driven per year: 12000 mi · Fuel economy: 28 mpg · Gas price: 3.5 $/gal · Annual insurance: 1600 $ · Annual maintenance & repairs: 900 $ · Registration & fees per year: 300 $
| 5-year total cost | $40,500 |
| Depreciation | $19,000 |
| Fuel (5 years) | $7,500 |
| Average cost per year | $8,100 |
Worked example
A $35,000 car worth $16,000 in five years loses $19,000 to depreciation. Fuel at 28 MPG for 12,000 miles a year at $3.50 costs about $1,500 a year, or $7,500 over five years. Insurance ($8,000), maintenance ($4,500), and fees ($1,500) add up over the period. Total: about $40,500 over five years, or roughly $8,100 a year. Depreciation alone is nearly half the cost, which is why resale value deserves as much attention as the sticker.
Frequently asked questions
Why is depreciation usually the biggest cost?
For most cars in the first five years, the value lost to depreciation exceeds fuel and maintenance combined. That is why choosing a model that holds its value can save more than any fuel-economy gain, and why the resale-value input matters most.
Where do I get a five-year resale estimate?
Vehicle pricing guides and residual-value data publish projected values by model and trim. A rough shortcut is to apply an annual depreciation rate; a separate depreciation calculator can produce the five-year figure to plug in here.
Does this include loan interest?
No. This tool measures ownership and operating costs. If you finance, add the total interest from an auto-loan calculator to get the complete out-of-pocket cost of the car.
How can I use this to compare two cars?
Run it once for each vehicle with its own price, resale value, MPG, and insurance quote. The car with the lower five-year total is cheaper to own even if its sticker price is higher, which is often the case for value-holding models.