Car total cost calculator
Compare two cars side by side. See how the monthly payment, loan term, interest, running costs and resale value add up to the real cost of ownership.
Your assumptions
Car B costs USD 21,008 more to own, while its monthly payment is USD 32 higher.
| Measure | Car A | Car B | B − A |
|---|---|---|---|
| Monthly loan payment | USD 658 | USD 690 | +USD 32 |
| Total interest over the loan | USD 6,253 | USD 15,072 | +USD 8,818 |
| Total paid for the loan | USD 39,503 | USD 57,952 | +USD 18,448 |
| Loan balance after 6 years | USD 0 | USD 7,889 | +USD 7,889 |
| Estimated resale value | USD 15,750 | USD 17,600 | +USD 1,850 |
| Total cost of ownership | USD 61,153 | USD 82,162 | +USD 21,008 |
| Cost per month owned | USD 849 | USD 1,141 | +USD 292 |
| Cost per year owned | USD 10,192 | USD 13,694 | +USD 3,501 |
Cumulative cash spent
Where the money goes
| Cost over 6 years | Car A | Car B |
|---|---|---|
| Depreciation | USD 19,250 | USD 26,400 |
| Purchase tax & fees | USD 3,250 | USD 3,880 |
| Interest | USD 6,253 | USD 14,682 |
| Insurance | USD 13,200 | USD 15,600 |
| Fuel or charging | USD 11,400 | USD 12,600 |
| Maintenance & repairs | USD 5,400 | USD 6,000 |
| Registration & other | USD 2,400 | USD 3,000 |
How the calculation works
TCO = down payment + loan payments made + loan balance at sale + running costs − resale valueThe monthly payment only tells you what a car costs per month while the loan runs. A longer term can keep that number close to a cheaper car’s payment while the total interest, the running costs and the loan balance left at sale grow. This calculator adds everything you pay during the ownership period and subtracts what the car is expected to be worth when you sell it.
Step by step
- Amount financed = price + additional purchase tax + one-off fees − down payment or trade-in. The entered additional purchase tax is applied to the full price. Use a pre-tax price or enter zero tax when your price already includes it.
- Monthly payment = amount financed × r / (1 − (1 + r)^−n), where r is the APR divided by 12 and n the loan term in months. At 0% APR the payment is simply the amount financed divided by n.
- If you sell before the loan ends, the remaining balance after k payments is B × (1 + r)^k − payment × ((1 + r)^k − 1) / r. That balance must be paid off when you sell, so it counts as a cost.
- Running costs (insurance, fuel or charging, maintenance and repairs, registration and other) are entered per year and held constant.
- Resale value = price × the resale percentage you enter. Depreciation = price − resale value.
- Total cost of ownership is the sum of all of the above. Cost per month and per year divide it by the months and years you own the car.
- Negative equity means the loan balance at sale is larger than the estimated resale value. The difference is what you would still owe after selling.
Limitations
These are estimates based on the assumptions you enter. The example values are illustrative, not market prices, rates or averages. Insurance, purchase tax, registration and dealer fees vary by country and locality; some places tax only the price after trade-in, and some fees are financed differently. Costs are held constant each year, with no inflation, tax credits, incentives, extended warranties, lease options or opportunity cost of the down payment. Actual loan contracts can use daily interest and different payment dates. This is general education, not financial advice or a loan offer.
Questions, answered.
Why compare total cost instead of the monthly payment?
A lower or similar monthly payment can come from a longer loan term rather than a cheaper car. Over a longer term you usually pay more interest, and the loan balance can stay above the car’s value for years.
Where should the resale percentage come from?
It is your estimate. Used-car guides and current listings for similar vehicles of the same age and mileage can help. Try a lower value too; resale prices are uncertain.
What happens if the loan is longer than the time I keep the car?
The calculator counts only the payments made while you own the car and adds the remaining loan balance, which you would need to pay off when you sell or trade in. Interest you would not pay after the payoff is excluded.
Does this include a lease?
No. It models a purchase with an installment loan or cash. Leases have different payment and end-of-term rules.
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