Total Cost of Ownership includes every expense: purchase price minus resale value (depreciation), plus fuel, insurance, tax, MOT, servicing, tyres, and repairs over your ownership period.

What is the biggest ownership cost?

For most cars, depreciation is the single largest cost, often exceeding fuel and all other costs combined. Choosing a car that holds its value well can save thousands.

How do I compare two cars fairly?

Run the TCO calculation for both cars over the same ownership period. The car with the higher purchase price may actually be cheaper overall if it depreciates less and costs less to run.

What is total cost of ownership (TCO)?

TCO includes every cost associated with owning a car over a specific period: purchase price, finance interest, depreciation, fuel, insurance, road tax, MOT, servicing, repairs, tyres, and parking. It gives the true cost of motoring rather than just the purchase price.

How do I reduce my total cost of ownership?

Buy a reliable car thats 2-3 years old (avoiding the steepest depreciation), choose a fuel-efficient model, maintain it properly, shop around for insurance annually, and keep it for at least 5 years. The cheapest car to own is often not the cheapest to buy.

CarCalcs

Total Cost of Ownership Calculator

Calculate the complete cost of owning a car over any period.

Purchase Price

Expected Resale Value

Ownership Period

Annual Mileage

Annual Fuel

Annual Insurance

Annual Tax

Annual Maintenance

MOT, servicing, tyres, repairs

How We Calculate This

Total Cost = (Purchase Price - Resale Value) + (Annual Running Costs x Years). This gives the true cost of ownership including depreciation.

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Actual figures may vary based on driving conditions, vehicle specifications, and other factors.