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True Cost of Ownership Calculator

Calculate the complete 5-year cost of owning a vehicle including depreciation, fuel, maintenance, insurance, and financing. See the real cost before you buy.

True Cost of Ownership Calculator
Calculate the total 5-year cost of owning a vehicle including depreciation, fuel, maintenance, insurance, and financing

Vehicle Information

Purchase & Financing

Usage & Expenses

Understanding Total Cost of Ownership

Most car buyers only focus on the monthly payment, but that's just a fraction of the true cost. The True Cost of Ownership (TCO) reveals the complete financial picture over 5 years including depreciation (the biggest cost), fuel, maintenance, insurance, registration, and financing charges.

A $30,000 car typically costs $45,000-55,000 over 5 years - that's 50-80% more than the sticker price! Understanding TCO helps you buy the right vehicle, negotiate better deals, avoid financial surprises, and budget accurately for ownership.

The 6 Components of TCO

Depreciation (40-50%)
The single largest cost - new cars lose 60-70% of value in 5 years
  • Year 1: 20-30% loss ($6,000-9,000 on $30k car)
  • Years 2-5: 10-15% per year
  • Toyota/Honda hold value best (50% loss)
  • Luxury brands worst (70%+ loss)
Fuel (20-25%)
Varies dramatically by MPG and annual mileage
  • Average: $2,000-2,500/year (12k miles)
  • Trucks/SUVs: $3,000-4,000/year
  • Hybrids: $1,200-1,500/year
  • EVs: $600-900/year (electricity)
Maintenance (8-12%)
Increases significantly in years 4-5 as major services come due
  • Year 1: $300-500 (warranty coverage)
  • Year 5: $1,200-2,400 (timing belt, brakes)
  • Honda/Toyota: $4,000-5,000 total
  • BMW/Mercedes: $10,000-12,000 total
Insurance (12-18%)
Depends on vehicle type, age, location, and driving record
  • Economy cars: $1,200-1,500/year
  • SUVs/Trucks: $1,500-1,800/year
  • Luxury vehicles: $2,200-3,000/year
  • Sports cars: $3,000-5,000/year
Financing (5-10%)
Interest adds up quickly - every 1% APR = $1,500+ over 5 years
  • 3% APR: $2,300 interest on $25k loan
  • 6% APR: $4,800 interest
  • 9% APR: $7,500 interest
  • Larger down payment = less interest
Registration & Taxes (2-4%)
Varies by state and often based on vehicle value
  • Low: $50-150/year (Montana, Alaska)
  • Average: $150-300/year
  • High: $400-800/year (California, Nevada)
  • Sales tax: 4-10% of purchase price

Common TCO Mistakes to Avoid

1. Only Considering Monthly Payment

A lower monthly payment often means longer loan term and thousands more in interest. A $400/month payment for 72 months costs $28,800 vs $24,000 for 60 months.

2. Ignoring Depreciation

Depreciation is typically 40-50% of total cost. A $35k car that depreciates to $12k (65% loss) costs $23k in value loss alone - more than 4 years of fuel combined.

3. Underestimating Maintenance

Year 1 costs $300-500 but year 5 can be $1,500-2,500+ (timing belt, transmission service, tires). Luxury brands cost 2-3x more: BMW 5-year maintenance averages $12,000 vs $4,000 for Toyota.

4. Choosing Based on MSRP Alone

A $25k Toyota Camry with low TCO beats a $22k Chrysler 200 with high TCO. Over 5 years, the Camry costs $8,000 less due to better resale, reliability, and fuel economy.

5. Extending Loan Terms to Lower Payments

72-month loans feel affordable but cost 30-40% more in interest. You're also underwater longer (owing more than the car's worth) and may need repairs while still making payments.

Track Your Actual TCO with Carvetka

Calculators provide estimates, but your actual costs depend on driving habits, maintenance choices, and unexpected repairs. Carvetka automatically tracks every expense with AI-powered receipt scanning to show your real cost per mile and identify savings opportunities.

Real-Time TCO Tracking

See live cost per mile, monthly expenses, and category breakdowns. Compare against budget and identify cost spikes before they become problems.

AI Receipt Scanning

Snap a photo of any receipt - gas, maintenance, insurance. AI extracts all details automatically. No manual entry means accurate TCO data in seconds.

Multi-Vehicle Comparison

Compare actual TCO across multiple vehicles. Perfect for families deciding which car to keep, or businesses optimizing fleet costs.

Predictive Maintenance

Get reminders before services are due. Catching issues early saves hundreds per repair and extends vehicle life, reducing long-term TCO.

Start Tracking Your TCO - Free Trial

Frequently Asked Questions