Car Cost of Ownership Calculator

Cost by category

Worked example: gas sedan vs. electric car

Using AAA's 2025 averages for a medium gas sedan and for electric vehicles, a $32,000 gas car and a $40,000 electric car, 10% down and a 60-month loan at 7%, owned for five years at 15,000 miles a year:

• Gas sedan: $50,935 in total, or $848.91 a month. Fuel is $8,351 of that.
• Electric car: $54,965, or $916.08 a month, with charging at $3,807.
• The electric car saves $4,544 on fuel, but AAA's averages give it higher depreciation ($22,565 vs. $17,310) and higher insurance, so it costs $4,030 more overall.

Drive 20,000 miles a year and the gap narrows to $2,056, because fuel is the cost that grows with miles. Cheaper home charging, a lower purchase price or a model that holds its value better can flip the result, which is why the averages are only a starting point.

About the AAA defaults

AAA's Your Driving Costs study estimates what it costs to own and drive a new car for five years and 75,000 miles. Its 2025 edition put the total at $11,577 a year on average, and found depreciation, "the difference between a car's purchase price and its resale value," to be the largest cost, at $4,334 a year on average.

The vehicle-type presets fill in AAA's category averages for insurance, license and registration, depreciation and maintenance. AAA reports fuel as a cost per mile; the miles-per-gallon and miles-per-kWh figures here are what those costs imply at the prices AAA used ($3.151 a gallon and 16.7 cents per kWh), not official efficiency ratings. Depreciation is a yearly dollar figure for AAA's sample of models, so for a much cheaper or more expensive car, scale it to your price.

Frequently asked questions

Why is depreciation counted as a cost if I never pay it?

You pay it when you sell or trade the car: it is the difference between what you paid and what you get back. In AAA's study it is the largest single cost of owning a new car.

Why does the loan only count interest, not payments?

Loan payments are mostly paying for the car itself, which is already counted through depreciation and the value you keep. Interest is the extra cost of borrowing. Only interest paid during the years you own the car is counted.

How do I estimate depreciation for a specific model?

Compare the price new with prices for the same model a few years old, or use a lease quote: the residual value is the leasing company's estimate of what the car will be worth at the end of the term.

Does this include tax credits or incentives?

No. Subtract any incentive from the purchase price if it lowers what you pay, and remember it lowers the loan too.