The real cost of a car isn't the payment — it's depreciation, insurance, fuel, maintenance and interest combined.
True monthly cost
$868
All-in, averaged over 5 years.
Over five years, the true cost is $52,080 — $10,416 a year. The biggest piece is usually depreciation ($21,000 here), the value the car quietly loses whether you drive it or not. Add $7,080 of interest and $24,000 of insurance, fuel and upkeep, and the real number is far above the loan payment alone.
Depreciation is the largest and most ignored cost of owning a car. A new car loses roughly 20% in year one and 40–60% over five years. Buying a two- to three-year-old car lets someone else absorb the steepest drop, which is the single biggest lever on total cost of ownership. Reliable brands that hold value also cut this number sharply.
At 12,000 miles a year, this car costs about $1 for every mile you drive — a useful figure when weighing a move closer to work, a second car, or whether a trip is worth it. Most drivers dramatically underestimate this number because they only count fuel.
A car that fits the loan payment can still break a budget once ownership costs are added. Check the affordability calculator with the full monthly figure of $868, not just the payment.
Car affordability calculatorWorked scenarios with the full analysis, so you can see how the numbers move before entering your own.
A typical new-car purchase, showing how depreciation and running costs dwarf the loan payment.
True monthly cost
$868
Over five years, the true cost is $52,080 — $10,416 a year. The biggest piece is usually depreciation ($21,000 here), the value the car quietly loses whether you drive it or not. Add $7,080 of interest and $24,000 of insurance, fuel and upkeep, and the real number is far above the loan payment alone.
Depreciation is the largest and most ignored cost of owning a car. A new car loses roughly 20% in year one and 40–60% over five years. Buying a two- to three-year-old car lets someone else absorb the steepest drop, which is the single biggest lever on total cost of ownership. Reliable brands that hold value also cut this number sharply.
At 12,000 miles a year, this car costs about $1 for every mile you drive — a useful figure when weighing a move closer to work, a second car, or whether a trip is worth it. Most drivers dramatically underestimate this number because they only count fuel.
A used car bought outright, where there's no interest and depreciation is gentler.
True monthly cost
$583
Over five years, the true cost is $35,000 — $7,000 a year. The biggest piece is usually depreciation ($11,000 here), the value the car quietly loses whether you drive it or not. Add $0 of interest and $24,000 of insurance, fuel and upkeep, and the real number is far above the loan payment alone.
Depreciation is the largest and most ignored cost of owning a car. A new car loses roughly 20% in year one and 40–60% over five years. Buying a two- to three-year-old car lets someone else absorb the steepest drop, which is the single biggest lever on total cost of ownership. Reliable brands that hold value also cut this number sharply.
At 12,000 miles a year, this car costs about $1 for every mile you drive — a useful figure when weighing a move closer to work, a second car, or whether a trip is worth it. Most drivers dramatically underestimate this number because they only count fuel.
A pricier vehicle with higher insurance, fuel and steeper depreciation.
True monthly cost
$1,357
Over five years, the true cost is $81,424 — $16,285 a year. The biggest piece is usually depreciation ($34,100 here), the value the car quietly loses whether you drive it or not. Add $12,324 of interest and $35,000 of insurance, fuel and upkeep, and the real number is far above the loan payment alone.
Depreciation is the largest and most ignored cost of owning a car. A new car loses roughly 20% in year one and 40–60% over five years. Buying a two- to three-year-old car lets someone else absorb the steepest drop, which is the single biggest lever on total cost of ownership. Reliable brands that hold value also cut this number sharply.
At 14,000 miles a year, this car costs about $1 for every mile you drive — a useful figure when weighing a move closer to work, a second car, or whether a trip is worth it. Most drivers dramatically underestimate this number because they only count fuel.
A car driven 25,000 miles a year, showing how heavy use raises fuel, maintenance and cost per mile.
True monthly cost
$1,061
Over five years, the true cost is $63,642 — $12,728 a year. The biggest piece is usually depreciation ($19,500 here), the value the car quietly loses whether you drive it or not. Add $5,642 of interest and $38,500 of insurance, fuel and upkeep, and the real number is far above the loan payment alone.
Depreciation is the largest and most ignored cost of owning a car. A new car loses roughly 20% in year one and 40–60% over five years. Buying a two- to three-year-old car lets someone else absorb the steepest drop, which is the single biggest lever on total cost of ownership. Reliable brands that hold value also cut this number sharply.
At 25,000 miles a year, this car costs about $1 for every mile you drive — a useful figure when weighing a move closer to work, a second car, or whether a trip is worth it. Most drivers dramatically underestimate this number because they only count fuel.
When people budget for a car, they usually think about the monthly loan payment. But the payment is often less than half the true cost of ownership. Depreciation, insurance, fuel, maintenance, repairs, registration and financing interest all add up — commonly making the real monthly cost 50–100% higher than the payment.
The biggest hidden cost is depreciation: the value the car loses over time. It doesn't show up on any bill, which is exactly why it's ignored, but it's real money — the gap between what you paid and what you'll sell for. This calculator brings all the costs together so you can see the number that actually matters for your budget.
The most powerful lever is depreciation, and the way to control it is what and how you buy. A lightly used car (two to three years old) skips the steepest depreciation while still offering most of the useful life. Choosing reliable models that hold their value well compounds the benefit, since they both depreciate less and cost less to maintain.
Beyond the purchase, keeping a car longer spreads the depreciation and any financing over more years, lowering the cost per year. Shopping insurance, maintaining the car to avoid big repairs, and driving fewer miles all help at the margins. But the decision at purchase — new versus used, and which model — sets the majority of your total cost before you've driven a mile.
The loan payment is often under half the true cost. Depreciation, insurance, fuel and upkeep make the real number far higher.
The largest cost doesn't appear on a bill. Buying new means absorbing the steepest depreciation yourself.
Most drivers only count fuel. The real per-mile cost including depreciation and upkeep is several times higher.
Two cars at the same price can differ by thousands in resale value. Value retention is a major, controllable cost.
Frequent trades keep you in the steepest depreciation years. Keeping a car longer spreads the cost.
The true cost includes depreciation, financing interest, insurance, fuel, maintenance, repairs and registration — not just the loan payment. For a typical $35,000 new car, the five-year total is often $40,000–50,000, or roughly $700–850 a month, well above the loan payment alone. Depreciation is usually the largest single piece.
Depreciation — the value the car loses over time — is usually the largest cost, especially for new cars, which lose about 20% in the first year and 40–60% over five. It doesn't appear on any bill, which is why it's overlooked, but it's the gap between what you paid and what you can sell for.
For a typical financed new car, the all-in cost is often $700–900 a month once depreciation, insurance, fuel, maintenance and interest are included — far more than the loan payment. A used car paid in cash can be considerably less. Enter your specifics above for a personalized figure.
Divide your total annual cost of ownership by the miles you drive in a year. At $8,000 a year and 12,000 miles, that's about $0.67 per mile. It's a useful number for deciding whether a trip, a longer commute, or a second car is worth it — and most people underestimate it badly.
Used is almost always cheaper to own, mainly because of depreciation. A new car loses its value fastest in the first two to three years, so buying a lightly used car lets someone else absorb that drop. Reliable used models that hold value and don't need major repairs offer the lowest total cost of ownership.
The next calculations that usually follow this one.
See your real monthly payment after tax, trade-in and fees — plus the total interest a longer term quietly adds.
Work backwards from your income to a car price you can actually carry — payment, insurance, fuel and all.
Break a lease into its real parts — depreciation, finance charge and tax — and see the money factor as a plain APR.
Built on take-home pay, with the annual costs that break most monthly budgets.
Compare your current car loan to a new one — monthly savings, lifetime savings and the break-even on fees.
Guides that explain the decisions behind these numbers.
How to build a budget on take-home pay using the 50/30/20 framework, account for irregular annual costs, and fix the categories that actually matter.
Updated January 15, 2026
Compare debt payoff methods, understand when consolidation helps, and see why payment size matters far more than payoff order.
Updated January 15, 2026
New tools, guides and the occasional thing that will genuinely save you money. No spam, unsubscribe anytime.
Developer note: this form has no backend. Connect an email provider and add a privacy policy before collecting real addresses.