Car total cost of ownership and depreciation calculator

The price of a car is only the start of what it costs. Depreciation is usually the largest cost of all, followed by fuel, insurance, maintenance and tax. These calculators add everything up to a total and a cost per kilometre, work out the yearly depreciation rate from a purchase and resale price, and project a car’s value into the future. Results are estimates in any currency, not financial advice.

Total cost of ownership

Adds depreciation, fuel, insurance, maintenance, tax and finance costs over the years you keep the car, and divides by the distance driven. It is the fairest way to compare a cheaper car with a more economical or better-holding one.

Purchase pricecurrencyPrice paid, including registration.Expected resale valuecurrencyWhat you expect to sell it for.Years of ownershipyearsHow long you will keep the car.Distance per yearTypical yearly driving.Fuel consumptionl/100 kmReal-world average consumption.Fuel priceper litreAverage price you expect to pay.Insurance per yearcurrencyAnnual premium.Maintenance and tyres per yearcurrencyServicing, tyres, repairs.Road tax and fees per yearcurrencyAnnual vehicle tax, inspection and parking permits.Total finance interestcurrencyInterest paid over the loan; use the car loan calculator. 0 if paid in cash.

Results

Total cost—currencyEverything spent over the ownership period, after selling the car.

Cost per year—currencyTotal divided by years owned.

Cost per km—per kmTotal divided by distance driven.

Depreciation share—%How much of the total is lost value.

Formula

total = (price − resale) + fuel + (insurance + maintenance + tax) × years + interest
fuel = km/year × years × l/100 km / 100 × fuel price

Yearly depreciation rate

Finds the average percentage a car loses each year from its purchase and resale price. Cars lose value fastest in the first years, so this compound rate is an average across the period.

Purchase pricecurrencyPrice when new or when bought.Value now or at salecurrencyCurrent or expected value.Years between the twoyearsAge difference between the two values.

Results

Average depreciation—%/yearCompound yearly loss of value.

Total value lost—%Share of the purchase price lost.

Formula

rate = 1 − (resale / price)^(1 / years)

Projected future value

Projects a vehicle’s value forward at a constant yearly depreciation rate. Useful for estimating resale value at the end of a loan or lease, or for insurance and budgeting.

Value todaycurrencyCurrent price or value.Depreciation rate%/yearAbout 15–20% a year for new cars early on, 10–15% later.Years aheadyearsHow far ahead to project.

Results

Projected value—currencyEstimated value after that many years.

Formula

future value = value × (1 − rate)^years

Worked example: a 30,000 family car over five years

Bought for 30,000 and sold for 15,000: 15,000 of depreciation, an average of 12.9% a year.
75,000 km at 7 l/100 km and 1.50 per litre costs 7,875 in fuel.
Insurance, maintenance and tax add 1,700 a year, or 8,500 over five years.
Total: 31,375 — about 6,275 a year, or 0.42 per km. Depreciation is 48% of it.

Typical share of ownership costs for a new mid-size car (first five years)

Cost	Typical share
Depreciation	about 35 – 50%
Fuel or electricity	about 15 – 25%
Insurance	about 10 – 20%
Maintenance and tyres	about 8 – 15%
Finance, tax and fees	about 5 – 15%

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Results are theoretical estimates from standard engineering formulas. Real-world figures depend on conditions these formulas do not capture. Always follow the manufacturer's specifications for maintenance, loading and safety decisions.

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Car total cost of ownership and depreciation calculator

Total cost of ownership

Yearly depreciation rate

Projected future value

Worked example: a 30,000 family car over five years

Typical share of ownership costs for a new mid-size car (first five years)

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