ClutchCalcs

Finance

Total Car Ownership Cost

The sticker price on a new $30,000 car is the smallest part of the actual cost. Over 10 years of ownership, you'll spend another $22,000+ in depreciation (the car drops to $8,000 resale), $14,000 in fuel (at 30 MPG / 12K miles/yr / $3.50/gal), $7,000 in maintenance, and $14,000 in insurance — totaling about $57,000 for the privilege. Per mile, that's around $0.48. This calculator runs the full 10-year math for any vehicle so you can compare two options fairly, or see whether your daily driver is actually cheap to own (compact car: $0.40-0.50/mile) or secretly expensive (luxury SUV: $0.80-1.10/mile).

10-year total

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Depreciation
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Fuel
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Per mile
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The five costs of car ownership

  1. Depreciation (40-50% of total cost): the largest hidden cost. New cars lose 20-30% in the first year, ~50% by year 5, ~70-75% by year 10. A $30K new car ends up worth $7-9K after a decade. That $22K loss is real money that left your pocket.
  2. Fuel (15-25%): at 30 MPG, 12,000 mi/year, $3.50/gal = $1,400/year. Hybrids cut fuel by ~50%; EVs cut by 70-80% at home electricity rates.
  3. Insurance (15-20%): AAA averages $1,400-2,200/year for full coverage, more for high-performance / luxury / urban / under-25 drivers.
  4. Maintenance + repairs (10-15%): $500-800/year while under warranty, $800-1,500 after. Older European luxury and high-tech vehicles can spike to $2,000+ as electronic systems fail.
  5. Registration + taxes (3-5%): state-dependent. Virginia: 4% personal property tax annually. California: 2% sales tax + DMV fees. Most states: nominal flat registration ($30-100/year).

10-year cost by vehicle type (AAA 2024 data)

  • Small sedan: $52,000 ($0.43/mile)
  • Mid-size sedan: $69,000 ($0.57/mile)
  • Small SUV: $71,000 ($0.59/mile)
  • Mid-size SUV: $87,000 ($0.72/mile)
  • Pickup truck (1/2-ton): $96,000 ($0.80/mile)
  • Hybrid sedan: $63,000 ($0.52/mile) — fuel savings offset higher purchase cost
  • EV (mid-tier): $73,000 ($0.61/mile) — more depreciation, less fuel/maintenance
  • Luxury SUV: $122,000 ($1.02/mile)

How to use this calculator

  1. Purchase price: actual price paid including taxes/fees.
  2. Resale value 10 yr: estimate from KBB / Edmunds for similar 10-year-old vehicles, or use 25% of purchase price as default.
  3. MPG: real-world, not EPA sticker.
  4. Miles per year: US average is 12,000-14,000.
  5. $/gal: current local gas price.
  6. Maintenance + insurance: annual averages.
  7. Output: 10-year total cost, depreciation cost, fuel cost, per-mile cost.

Common scenarios

$30,000 Honda Civic, 35 MPG, 12K mi/yr, 10 years. Depreciation $22K, fuel $12K, maintenance $7K, insurance $14K = $55K total = $0.46/mile. Reasonable.

$50,000 Ford F-150, 18 MPG, 15K mi/yr, 10 years. Depreciation $35K, fuel $29K, maintenance $9K, insurance $17K = $90K total = $0.60/mile. Trucks are expensive to own.

$45,000 Tesla Model 3 LR, 4 mi/kWh equivalent, 12K mi/yr, $0.13/kWh home charging. Depreciation $25K, electricity $3.9K, maintenance $3K, insurance $15K = $46.9K total = $0.39/mile. EV maintenance is dramatically lower because there's no oil, fewer brakes used (regen does most of the slowing), and no transmission.

FAQ

What about repairs after 10 years? +
Past 10 years, cars get more reliable per dollar spent on them but absolute repair costs rise. Cars that survive to 200K+ miles often cost less per year to maintain than newer cars under warranty (because the warranty is paid for upfront in higher purchase price). High-mileage Toyotas and Hondas excel here.
Why is depreciation called a hidden cost? +
Because you never write a check for it — it's the difference between purchase price and eventual resale value, spread over years. People feel fuel and maintenance because they pay cash for them; they don't feel depreciation because it's silent. But depreciation is usually the biggest cost.
What car holds value the best? +
Trucks (Tacoma, Tundra, F-150): 65-75% retained after 5 years. Some Toyotas (4Runner, Land Cruiser): 70%+. Some Subarus: 60-65%. Worst: luxury sedans (Mercedes E-class loses 60%+ in 5 years), EVs in early years (Teslas have improved), and any model with a major redesign during your ownership period.
Should I lease or buy? +
Lease if you want a new car every 2-3 years and don't care about asset value. Buy and hold for 7-10+ years for the lowest per-mile cost. Leasing is typically 30-50% more expensive than buying-and-holding over the long term — you're paying for the rapid depreciation while keeping no asset. For business expense purposes, leasing has tax advantages.
How does an EV compare on total cost? +
EVs typically have 30-50% lower maintenance costs (no oil, no transmission, much less brake wear) and 70-80% lower fuel costs at home charging rates. Higher upfront cost. Higher initial depreciation (improving). Over 10 years, total cost typically lands within 10% of comparable gas cars — sometimes cheaper, sometimes more, depending on local electricity rates.
What if I keep a car for 20 years? +
Per-mile cost drops dramatically. A car bought new and kept 20 years amortizes depreciation across 200K+ miles instead of 120K, and major maintenance items (timing belt, transmission service) get spread out. The cheapest possible car to own is a reliable, well-maintained 15-20 year old vehicle.
Does this include opportunity cost of the purchase? +
No — if you'd otherwise invested the $30K at 7% return, you'd have $59K after 10 years. The "true" cost including foregone investment returns adds another $30K. AAA's per-mile figures and most ownership calculators don't include opportunity cost; if you think this way, mentally add 20-30%.
What about used car ownership? +
Buying a 2-3 year old used car captures the steepest depreciation period without you paying for it. A 3-year-old car at 50% of new price often delivers 90% of the remaining utility — the per-mile cost is typically 15-25% lower than buying new. Best value play in car ownership.