What is the biggest cost of owning a car?

Depreciation, by far. The average new car loses 20% of its value in year one and another 40-50% over 5 years. On a $40,000 vehicle, that is $24,000-$28,000 in depreciation alone. Financing costs are second at a typical 7-8% APR, followed by insurance. Fuel and maintenance are the smallest components for most drivers at typical mileage.

How is 5-year net cost calculated?

5-year net cost = all cash spent (down payment + loan payments + fuel + insurance + maintenance) minus the residual value of the vehicle at year 5. This gives a true ownership cost that accounts for the equity you retain, making it comparable to a lease calculation over the same period.

Are the results personalized financial advice?

No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.

What should I do after seeing the result?

Use the recommendation module on this page to compare auto loan rates, or run Money Map to compare this loans & credit decision with your other opportunities.

How does SwitchWize choose related offers?

Related offers are matched by the calculator surface (auto) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.

How fresh are the rates and offers shown?

Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.

Where can I see the ranking methodology?

The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.

Can Money Map use this result?

Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

New

Car Total Cost of Ownership Calculator — 5-Year All-In Cost

Calculate the true 5-year cost of owning a car, including depreciation, loan interest, fuel, insurance, and maintenance. See your cost per mile and a year-by-year breakdown.

Vehicle Details

Purchase Price

Down Payment

Loan APR (%)Loan Term

Running Costs

Miles/YearMPG (combined)

Gas Price (per gallon)

Insurance/Year

Maintenance/Year

5-Year Net Cost

$52,939

0.88¢ per mile · $601.14/mo loan payment

5-Year Cost Breakdown

Depreciation(46%)

$24,500

Loan Interest(11%)

$6,068

Fuel(13%)

$7,000

Insurance(17%)

$9,000

Maintenance(12%)

$6,371

Depreciation: Edmunds/NADA industry average model (20% yr1, 15%/13%/12%/10% yrs 2-5). Actual depreciation varies by make, model, and market. Maintenance escalates 3%/yr. Estimate only — not financial advice.

Coach Insight

The sticker price is only the beginning. A $35,000 car over 5 years typically costs $50,000-$65,000 all-in once you add depreciation, interest, $3.50/gallon fuel, insurance, and maintenance. Depreciation alone accounts for 40-50% of most 5-year ownership costs. This calculator surfaces all of that so you can compare the real cost of two different vehicles or the buy-vs-lease decision on a fair basis.

Recommended next move

Compare your payment against current auto-loan options.

A lower APR or shorter term can change the true cost of the vehicle. Compare rates before committing.

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Reviewed Jun 24, 2026 · Methodology

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