Guides / The real cost
Total cost of ownership: the number that matters
Why a cheaper car can cost more over five years, and how to add it up.
The sticker price is only the start. Two cars with similar prices can differ by thousands of dollars over five years once you count depreciation, fuel, insurance, maintenance and financing.
What goes into it
- Depreciation: the value the car loses while you own it, usually the biggest cost
- Financing: interest on the loan
- Fuel or charging
- Insurance
- Maintenance and repairs
- Taxes, registration and fees
How to compare
- Pick a time frame, like five years.
- Estimate each cost for each car using the same assumptions (miles per year, fuel price).
- Subtract the estimated resale value at the end.
- Compare the totals, and the cost per month and per mile.
Use our calculator
Our 5-year cost calculator does this math for two cars side by side.
General information for car buyers, not financial advice. Costs vary by location, driving and market. Easy Auto Compare isn't a dealer, lender or insurer and takes no referral fees.