How to Calculate Total Cost Of Ownership
What is Total Cost Of Ownership?
Calculates complete car ownership cost including purchase, financing, fuel, insurance, maintenance, and depreciation over a period.
Step-by-Step Guide
- 1Sum purchase price and financing costs
- 2Add annual insurance, registration, maintenance
- 3Multiply by ownership period (typically 5-7 years)
- 4Subtract estimated resale value
Worked Examples
Input
$30k car, 5yrs
Result
$45k TCO
Common Mistakes to Avoid
- ✕Only comparing purchase price, not total cost over time
- ✕Not accounting for major repairs (transmission, engine)
Frequently Asked Questions
How much does maintenance typically cost?
Years 1-3: $500-1000/year; years 4-7: $1500-2500/year; increases significantly after warranty.
What car has lowest total cost of ownership?
Reliable brands (Toyota, Honda, Mazda) with high mileage capacity and parts availability.
Ready to calculate? Try the free Total Cost Of Ownership Calculator
Try it yourself →