How to use this calculator
Replace the example values with your own measurements or specifications. Keep the units shown beside each label. Results update as you type; reset restores the example.
This is an undiscounted ownership-cost estimate, not a monthly cash-flow or loan-payment forecast. Resale value and future costs are your assumptions. Annual amounts stay constant; inflation, investment opportunity cost, lease structures, and uncertain incentive eligibility are not modeled. Annual distance changes only the per-distance result: update energy and maintenance budgets yourself if driving changes. Zero distance omits per-distance results. Resale above purchase price produces negative depreciation.
The formula
A worked example
In the five-year examples above, Vehicle A loses $15,000 in value, has $4,000 in one-time costs and interest, and $20,500 in running costs: $39,500 total. Vehicle B totals $38,000. B costs $1,500 less over five years, despite its higher purchase price. These inputs illustrate the arithmetic; they do not describe actual vehicles.
Common questions
Why not add loan payments to the purchase price?
Principal repays money borrowed to buy the car. Counting both the purchase price and loan principal would count the same acquisition cost twice. Add only interest incurred during the ownership period, including any applicable financing charges you have not included elsewhere.
What should I enter for a car I already own?
To compare keeping it against buying another vehicle, use its current market value as the starting purchase-value input and its estimated future resale value. Use only future costs and interest for the comparison period.
How do I estimate fuel or electricity costs?
Use Annual Fuel Cost for a gasoline vehicle and EV vs Gas Cost for energy comparisons. Enter the annual amount here. Include charging losses once and add public-charging or session charges if relevant.
Does the monthly average equal my monthly payment?
No. It spreads the modeled total cost, including depreciation and eventual resale, over the period. Actual monthly cash payments can differ substantially.
What belongs in one-time costs?
Include purchase taxes, dealer or title fees, charger installation, and similar costs not already in purchase price. Apply only confirmed discounts or incentives to purchase price. Avoid counting the same item again in annual fees.
Can the savings result be negative?
Yes. A negative result means Vehicle B costs more under your inputs. Equal totals mean neither vehicle has a modeled cost advantage.
Sources & calculation method
Related guidance: U.S. Department of Energy: vehicle ownership cost research. Accessed September 9, 2026. The equation above describes this tool’s model; the reference provides practical context and does not endorse this site.
Prepared with AI assistance. Formula examples and input validation have automated checks. This page has not received an independent automotive professional review. Read our review standards.