Find out what your car really costs per month when you count the loan payment, insurance, fuel, maintenance, registration, and depreciation — not just the sticker price.
A buyer purchases a $35,000 car with $5,000 down, a 6% APR loan over 60 months. Insurance runs $150/mo, fuel $150/mo, maintenance $75/mo, registration & taxes $15/mo, and depreciation $250/mo.
Monthly Payment: $580.00
Total Monthly Cost: $1,220.00
Annual Cost: $14,640.00
5-Year Cost: $73,200.00
Cost Per Mile (12,000 mi/yr): $1.22
The $580 loan payment is less than half of the true $1,220 monthly cost. Depreciation alone ($250/mo) quietly adds $15,000 over 5 years.
A $12,000 used car is fully paid off. The owner pays $90/mo insurance, $120/mo fuel, $60/mo maintenance, $10/mo registration, and estimates $100/mo depreciation.
Monthly Payment: $0.00
Total Monthly Cost: $380.00
Annual Cost: $4,560.00
Cost Per Mile (12,000 mi/yr): $0.38
Even without a loan, this car costs about $4,560 per year — a reminder that "paid off" does not mean "free."
An electric vehicle priced at $55,000 with $10,000 down, a 5.5% APR loan over 60 months. Insurance $120/mo, charging $80/mo, maintenance $60/mo, registration $20/mo, depreciation $400/mo.
Monthly Payment: $859.40
Total Monthly Cost: ≈ $1,539.40
Annual Cost: ≈ $18,472.80
EVs often cost less to fuel and maintain, but rapid depreciation in the first few years can offset those savings.
The true cost of owning a car is the sum of six components: the loan payment (if any), insurance, fuel, maintenance, registration & taxes, and depreciation. The calculator combines them into one monthly number you can actually budget against.
The amortized payment on the amount you finance. Longer terms lower the payment but add interest and keep you "upside down" longer.
New cars lose roughly 20% of their value in year one and about 60% over five years. A simple estimate is 10–15% of purchase price per year.
Budget for tires, oil changes, brakes, and unexpected repairs. Older cars cost more to maintain but far less to insure and depreciate.
Fuel depends on mileage and efficiency; insurance depends on your car, driving record, and coverage level. Both should be checked against real quotes.
$35,000 car, $5,000 down, 6% APR, 60 months: P = $30,000, i = 0.5%/mo, n = 60 → M = $580.00
Add $150 insurance + $150 fuel + $75 maintenance + $15 registration + $250 depreciation = $1,220.00/mo → $14,640/yr → $73,200 over 5 years → $1.22/mile at 12,000 miles.
When most people think about car costs, they picture the monthly payment and the price at the pump. But for a new car, depreciation — the value the vehicle loses as it ages — is typically the single largest expense of ownership, often exceeding fuel and insurance combined.
A new car loses roughly 20% of its value in the first year and around 60% over five years. On a $35,000 car, that's roughly $21,000 in lost value over five years — about $350 per month that never shows up on any bill. Our calculator lets you include this cost so you can compare a new car against a gently used one honestly: the used car may cost less per month in almost every category.
To estimate depreciation for your own car, a simple rule of thumb is 10–15% of the purchase price per year for the first several years, tapering as the car ages. Luxury brands and EVs often depreciate faster; reliable economy and off-road models tend to hold value better.
The sticker price is just the entry ticket. According to AAA, the average new car costs about $10,728 per year — roughly $894 per month to own and operate when you count depreciation, insurance, fuel, maintenance, and fees. Over five years, that's more than $53,000 on top of the purchase price.
That's why two cars with identical sticker prices can have wildly different true costs. A $35,000 sedan that gets 35 mpg, holds its value, and costs $120/mo to insure will be far cheaper over five years than a $35,000 luxury coupe with 20 mpg, heavy depreciation, and $220/mo insurance — even though the loan payments are identical.
Before you sign, run the numbers for the full ownership period, not just the monthly payment. Dealers advertise the payment because it hides the other 50–70% of the real cost.
You have more control over your car costs than you might think. Here are the highest-impact levers, roughly in order of savings potential:
A 2–3 year old car has already absorbed the steepest depreciation. Keeping any car 8–10 years spreads its cost over far more months.
Rates change constantly. Comparing quotes annually can save $200–$600 per year with identical coverage.
Oil changes, tire rotation, and air filters are cheap; engine and transmission repairs are not. Preventive care protects resale value too.
Every mile costs fuel, wear, and depreciation. Fewer miles means a lower cost per mile and better resale value down the road.
⚠️ Important: Results are estimates that depend entirely on the values you enter. Depreciation varies widely by make, model, mileage, and market conditions, and insurance and fuel costs differ by location and driver. This tool is for general planning and educational purposes only and does not constitute financial, tax, or legal advice.