Car ownership calculator
Car Total Cost of Ownership Calculator
Combine depreciation with fuel and recurring costs over the ownership period you enter.
Estimate ownership costs
What your result means
Running cost is ongoing use; depreciation is value loss. Total cost of ownership combines both over the entered period without adding purchase price a second time.
What is included
The calculator totals the entered ownership-period components.
- Depreciation
- Purchase price minus expected end value
- Recurring costs
- Annual costs multiplied by years
Finance, parking, tolls and unexpected repairs are excluded unless entered as other costs.
Formula
Where the ownership cost goes
Total cost of ownership is more useful than looking at fuel cost alone because a car can lose value while also generating recurring costs.
The breakdown below separates the costs entered into the calculator so you can see which parts have the greatest effect on the result.
How annual mileage changes total ownership cost
Some ownership costs remain unchanged when mileage changes in this model, while fuel cost increases with distance travelled.
The table keeps the other example assumptions unchanged and varies annual mileage only. This helps show why the cheapest car to own can depend partly on how much it is driven.
| Annual mileage | Fuel over ownership period | Total ownership cost | Cost per mile |
|---|---|---|---|
| 5,000 | £2,151.82 | £13,691.82 | 91.3p |
| 8,000 | £3,442.91 | £14,982.91 | 62.4p |
| 10,000 | £4,303.63 | £15,843.63 | 52.8p |
| 12,000 | £5,164.36 | £16,704.36 | 46.4p |
| 15,000 | £6,455.45 | £17,995.45 | 40p |
| 18,000 | £7,746.54 | £19,286.54 | 35.7p |
| 20,000 | £8,607.26 | £20,147.26 | 33.6p |
| 25,000 | £10,759.08 | £22,299.08 | 29.7p |
Why purchase price is not simply added to the total
Buying a £20,000 car does not normally mean losing the full £20,000 during the ownership period. If the vehicle is later worth £12,000, the modelled value loss is £8,000.
For that reason, this calculator uses purchase price minus expected end value as depreciation. Adding the full purchase price as well would count part of the vehicle's value twice.
The expected end value is an input, not a resale-value prediction. Use a value that is reasonable for the vehicle and ownership period you are assessing.
What changes total ownership cost?
Purchase price and expected end value determine depreciation. Mileage changes fuel use, while entered insurance, VED, maintenance and other costs are multiplied across the ownership period.
Assumptions and limitations
- Purchase price is not added separately from depreciation.
- Finance payments and interest are excluded to avoid mixing borrowing with vehicle cost.
Helpful questions
What is included in total cost of ownership?
The calculator includes the entered depreciation, fuel, insurance, VED, maintenance and other annual recurring costs over the ownership period.
Why isn't the full purchase price included?
The model uses the loss in vehicle value during ownership rather than treating the entire purchase price as a consumed cost. Purchase price minus expected end value represents depreciation.
Does this include car finance interest?
No. Finance payments and interest are excluded. This keeps the cost of the vehicle separate from the way the purchase is financed.
How should I estimate the car's future value?
Enter a reasonable expected resale or trade-in value for the end of the ownership period. The calculator does not predict future used-car prices.
Does higher mileage always increase total ownership cost?
Higher mileage increases fuel use in this model. In reality it can also affect maintenance and depreciation, but those effects are not automatically estimated here.
Is cost per mile the same as fuel cost per mile?
No. Total ownership cost per mile spreads all modelled ownership costs across the miles driven, whereas fuel cost per mile considers fuel only.
Related calculators
- Car Running Cost Calculator
Estimate annual fuel and recurring car running costs.
- Car Depreciation Calculator
Estimate vehicle value loss over an ownership period.
- Car Loan Calculator
Estimate standard car-loan monthly payments and interest.