Car Cost of Ownership Calculator — The True Cost of a Car
Enter the purchase price, how long you will keep the car, its yearly depreciation, and your annual running costs. CalcWize estimates the resale value, totals the true cost of ownership, and breaks it down per month and per mile — so you can compare cars on what they actually cost, not the sticker price.
When this is useful
Comparing two cars where the cheaper sticker is not the cheaper car, deciding how long to keep a vehicle, or simply seeing the real monthly cost of motoring. The total is almost always higher than people expect once everything is added up.
Depreciation is the biggest cost
For most cars, the value lost to depreciation dwarfs fuel and servicing combined — especially in the first three years. A car bought for $30,000 that is worth $13,000 after five years has cost $17,000 in depreciation alone, often more than every other cost put together. It is the cost no one sees on a monthly statement.
Running costs add up quietly
Insurance, fuel, maintenance, tyres, and registration are easy to underestimate month-to-month but substantial over years. CalcWize totals them across your whole ownership period and shows them beside depreciation, so you see the full picture rather than one line at a time.
Cost per mile
Dividing the total by the distance you drive turns an abstract figure into something you can compare — useful when weighing a car against public transport, or a thirsty car against an efficient one. The fewer miles you drive, the more depreciation dominates the cost of each one.
Common mistakes
Judging a car by its purchase price alone, assuming an expensive car must be cheaper to run, and ignoring that some models depreciate far faster than others. Resale value and reliability often matter more to the true cost than the headline price.
Frequently asked questions
- What’s the single biggest cost of owning a car?
- Usually depreciation — the value the car loses over time — especially in the first three years. It often exceeds fuel, insurance, and maintenance combined, yet it never arrives as a monthly bill, which is why it’s so easy to ignore.
- How much do cars depreciate?
- Many new cars lose 15–20% of their value per year, with the steepest drop in year one. Buying a two- to three-year-old car lets the first owner absorb that initial hit. Some models hold value far better than others.
- Why work out cost per mile?
- It turns a big, abstract total into a figure you can compare — against public transport, a more efficient car, or simply driving less. The fewer miles you cover, the more of the fixed depreciation cost each one carries.
How we calculate it
Resale value is estimated as price × (1 − annual depreciation %) raised to the number of years. Depreciation is price minus that resale value. Running costs (insurance + fuel + maintenance + other) are multiplied by the years owned and added to depreciation for the total, which is then divided by months and by distance.
What it doesn't do
- The finance cost of a loan (use the Auto Loan calculator)
- Live or model-specific depreciation data (this uses your estimate)
- Business mileage tax claims
Last reviewed: 2026-05