Total cost of ownership calculator
Purchase price is often the smallest part. Adding running costs and subtracting resale gives a number worth comparing.
Total cost of ownership
47 300.00
- Cost per year
- 6757.14
- Cost per month
- 563.10
- Depreciation over the period
- 21 000.00
- Depreciation as a share of total cost
- 44.40 %
Show the working
- Purchase price = 30 000
- Years of ownership = 7
- Running cost per year = 2400
- Maintenance per year = 900
- Resale value at the end = 9000
- Total interest or finance cost = 3200
- running_total = (2400 + 900) * 7 = 23 100
- Total cost of ownership = 30 000 + 23 100 + 3200 - 9000 = 47 300
- Cost per year = 47 300 / 7 = 6757.14
- Cost per month = 6757.14 / 12 = 563.095
- Depreciation over the period = 30 000 - 9000 = 21 000
- Depreciation as a share of total cost = 47 300 > 0 ? 21 000 / 47 300 * 100 : 0 = 44.3975
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- TCO = purchase + running costs + finance cost - resale value
Depreciation is usually the largest single line for a car, and the one buyers think about least.
This is arithmetic, not financial advice. Real products carry fees, tax treatment and terms that no formula captures.