Vehicle Total Cost of Ownership
See acquisition, financing, insurance, energy, maintenance, registration, and depreciation together over your ownership horizon.
Purchase and financing
Price excludes tax and fees; trade-in is entered as net equity.
Ownership costs
Use annual expected values and a resale estimate at the end of the horizon.
About the Vehicle Total Cost of Ownership
The price on a vehicle's window sticker is only the starting point for what it actually costs to own — financing, insurance, fuel or electricity, maintenance, repairs, registration, and depreciation all add up over the years you keep the car, and depreciation alone is often the single largest cost. This calculator combines acquisition cost, financing, every major recurring operating cost, and expected resale value into one total and average monthly ownership figure, giving a complete picture rather than just a loan payment. It's useful for comparing two specific vehicles you're considering, budgeting realistically before a purchase, or understanding where your current vehicle's money is actually going each year.
How this calculator works
The exact model, assumptions, and limitations used for this decision.
TCO = cash down + trade equity + loan payments made + operating costs + loan balance due at sale − resale proceeds.
Calculation steps
- Vehicle price, sales tax, and fees establish acquisition cost; down payment and trade reduce financed principal.
- Loan payments and remaining balance use fixed-rate amortization through the earlier of sale or loan maturity.
- Insurance, energy, maintenance, repairs, and registration accumulate over ownership; resale offsets cost.
Important assumptions
- Trade-in is entered as positive net equity contributed to the purchase.
- Operating costs are annual averages and resale occurs at the end of the horizon.
- Opportunity cost of cash, inflation, and tax deductibility are excluded.
Frequently asked questions
Common questions about inputs, assumptions, and interpreting the result.
01What is vehicle total cost of ownership?+
It is the complete economic cost across acquisition, financing, operation, depreciation, and disposal—not only the payment.
02Why include the loan balance at sale?+
If you sell before the loan ends, the lender must be paid. Resale proceeds are reduced by the outstanding payoff.
03How is depreciation represented?+
Purchase acquisition cost enters the calculation and expected resale value exits it. Their difference, adjusted for financing and transaction inputs, captures value lost.
04Should trade-in be counted as a cost?+
Yes. Positive trade equity is value contributed to the new purchase and has an opportunity cost, just like cash down.
05What operating costs should be included?+
Insurance, fuel or electricity, routine maintenance, repairs, registration, property tax, parking, and other recurring vehicle-specific costs.
06Can I compare two vehicles?+
Run the calculator once for each vehicle using the same horizon, then compare total and monthly ownership cost. Use the dedicated comparison tools when available.
07How does ownership length change total cost of ownership?+
Longer ownership periods spread the largest depreciation hit, which typically occurs in the first few years, over more time, which is why average monthly cost often improves the longer a vehicle is kept after the loan is paid off.
08Should I include the opportunity cost of my down payment?+
The calculator doesn't automatically include it. If you want to reflect what that cash could have earned elsewhere, you can approximate it by treating a portion of the down payment as an added cost using your expected investment return.