Car True Cost
The sticker price isn't what you'll pay. Add up loan interest, insurance, fuel, maintenance, and depreciation — see what the car actually costs per month and per mile.
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How this calculator works ↓New to a term? Money terms explained.
Purchase & loan
Operating costs
Monthly cost
What you'd pay each month — loan payment plus operating costs. Resale is handled separately below.
Total cost over ownership
Cost breakdown
How this calculator works
The sticker price is one input among twelve. The calculator builds the total from four pieces:
- Loan. Purchase price minus down payment is financed with a standard loan, paid down in equal monthly payments (amortizing), at your APR (the yearly interest rate) and term. The monthly payment uses the same formula as any auto lender, and total interest is the sum of payments minus the amount borrowed.
- Operating costs. Insurance, maintenance and repairs, and registration are annual amounts you enter. Fuel is miles per year ÷ MPG × price per gallon. Together they form the monthly operating cost.
- Depreciation. Purchase price minus the resale value you expect at the end. It is the largest single cost of most new cars and the one people forget, because no bill ever arrives for it.
- Two monthly phases. While the loan runs, you pay the loan payment plus operating costs. After the last payment, only operating costs remain. The "average" figure blends both phases across the years you own the car.
Total spent is the down payment plus every loan payment plus operating costs for all the years you own the car. Cost per mile divides that by total miles driven. Resale is deliberately kept out of both, because it arrives as a lump sum when you sell; net cost after sale subtracts it.
One simplification to know about: if you sell before the loan ends, the calculator still counts the full schedule of payments, which slightly overstates the cost (in practice you would clear the remaining balance from the sale without paying the future interest).
Assumptions and where they come from
| Assumption | Default | Source / note |
|---|---|---|
| Default price, down payment, APR, term | $35,000, $5,000, 7.5%, 5 years | The APR is roughly the Federal Reserve's reported rate on 60-month new-car loans at commercial banks (G.19, about 7%). |
| Default resale value | $11,000 after 7 years | About 31% of the purchase price, a typical range for a mainstream vehicle held seven years. Depreciation varies widely by model; check a used-car price guide for yours. |
| Default fuel price | $4.50 per gallon | Rounded from the U.S. regular-gasoline average of $4.47 in the week of September 28, 2026 (EIA). Prices move weekly; enter your local price. |
| Default insurance, maintenance, fees | $1,800, $900, $200 per year | Placeholders in the range of national averages. AAA's 2026 study puts the all-in cost of a new vehicle driven 15,000 miles a year at $12,863 (AAA Your Driving Costs 2026). Use your own quotes. |
| Inflation | None | Every annual cost is held flat for the ownership period. Insurance and repair costs usually rise as a car ages. |
| Not modelled | Parking, tolls, tickets, and the return the down payment could have earned elsewhere (opportunity cost) | Add parking and tolls to annual fees if they are significant for you. |
Assumptions last reviewed: October 2026.
Frequently asked questions
What does it really cost per mile to own a car?
AAA's 2026 Your Driving Costs study puts the average new vehicle at $12,863 a year over five years and 75,000 miles, which works out to about 86 cents per mile; small sedans come in near 62 cents and half-ton pickups near $1.10. Your own figure depends most on depreciation and how many miles you drive, which is why the calculator asks for both.
Why is resale value kept separate from the monthly cost?
Because you never see it until you sell. Including it in the monthly figure would make the car look cheaper each month than it is. The calculator shows the cash you actually pay per month, then subtracts resale once in the net cost after sale.
Is a longer loan cheaper?
The monthly payment falls, but total interest rises because you borrow for longer. Compare a 5-year and a 7-year term in the calculator: the difference in total interest is the price of the lower payment. A long loan can also leave you owing more than the car is worth in the early years.
How much does a new car lose to depreciation?
It varies a lot by model, but a mainstream new car typically loses a large share of its value in the first few years and roughly two thirds over seven years. Enter a realistic resale value from a used-car price guide; the calculator turns it into an annual depreciation cost.
How do I compare buying new vs used with this tool?
Run it twice. For the used car, enter its price, a higher APR if your lender charges more for used, a higher maintenance figure, and a resale value that reflects its age at the end. Compare the average monthly cost and the cost per mile.
What is missing from the total?
Parking, tolls, tickets, car washes, and the return you could have earned on the down payment. Inflation in insurance and repair costs is also left out. If any of these are large for you, fold them into the annual fees field.
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This calculator is educational. It is not financial, tax, investment or legal advice. The assumptions are simplified; check them against your own situation or a licensed professional before acting on a result. See the Terms of Use.