Total ownership cost
$89,647
Includes depreciation, running costs, and opportunity drag.
Real Car Cost & Depreciation Calculator
Estimate the long-term cost of your next car purchase.
Mix depreciation, annual running costs, and opportunity cost to see how a vehicle might impact your cash flow over the full ownership window.
Ownership assumptions
Results
Estimated ownership impact
Scenario spans 6 years. All values follow your inflation and opportunity cost assumptions.
Cost per year
$14,941
Monthly view: $1,245
Vehicle value at exit
$11,552
Depreciation loss $26,448
Running cost snapshot
Inflation-adjusted running costs total $37,517 over the scenario horizon.
- Depreciation impact$26,448
- Running costs (inflation-adjusted)$37,517
- Opportunity cost drag$25,683
Affordability context
Opportunity cost drag adds $25,683 when capital could compound elsewhere.
Provide an income figure to estimate budget share.
| Category | Amount |
|---|---|
| Total cost / year | $14,941 |
| Total cost / month | $1,245 |
| Opportunity cost | $25,683 |
Estimates are illustrative and for educational purposes only. This tool does not provide financial or investment advice.
AI insight
Numeric ownership summary
Press the button to generate an AI summary of your current scenario. Nothing is saved or sent anywhere.
This AI note is illustrative only and not financial advice. Validate the numbers with your own plan.
Visual breakdown
Cost distribution snapshot
Each bar shows its share of the scenario total ($89,647).
Depreciation impact$26,448 · 29.5%
Running costs (inflation-adjusted)$37,517 · 41.8%
Opportunity cost drag$25,683 · 28.6%
Scenarios
Scenario comparison
Save mixes of purchase price, condition, and running costs to compare ownership impact.
Save at least one scenario to build a comparison set.
Results explainer
You’ll see total ownership cost over your chosen years, a depreciation curve, and annual running costs with inflation. The summary calls out whether depreciation, fuel/maintenance, or opportunity cost drives most of the total.
Disclaimer
Estimates are illustrative and for educational purposes only. This tool does not provide financial, investment, tax, or legal advice. Results depend on your inputs and assumptions and may not reflect real-world prices, financing costs, or depreciation paths.
How it works
The calculator applies a depreciation curve to the purchase price, adds annual running costs grown by your inflation rate, and layers in optional opportunity cost on the cash tied up. It sums these over your selected ownership years.
Inputs used
- Purchase price and planned ownership years
- Depreciation pattern and salvage value
- Annual running costs (fuel, insurance, maintenance, tax, parking)
- Inflation rate for running costs
- Optional opportunity cost rate
- Saved scenarios you compare
Core formulas
- Depreciation per year from your curve and salvage value
- Running cost growth = base cost × (1 + inflation)^year
- Opportunity cost ≈ cash × opportunity rate × years
- Total ownership = depreciation + running costs + opportunity cost
Calculation steps
- Apply your depreciation curve to estimate value each year.
- Grow annual running costs by your inflation rate.
- Sum depreciation loss and running costs over ownership years.
- Optionally add opportunity cost on the upfront cash.
- Report totals, annual averages, and cost drivers.
- Save scenarios to compare purchase prices, holding periods, or inflation settings.
Example scenario
Example: $28,000 purchase, 6-year hold, depreciation to $10,000 salvage. Annual running costs start at $3,200 with 3% inflation. Opportunity cost set to 4%. Depreciation contributes most of the total ownership cost, running costs rise modestly with inflation, and opportunity cost adds a smaller layer. Saving a second scenario with a longer hold or higher inflation shows how the total shifts.
Interpretation notes
- Depreciation often dominates early years; longer holds spread it out.
- Running costs grow with inflation—adjust the rate to match your area.
- Opportunity cost matters more when large upfront cash is used.
- Changing hold period or inflation can swing total ownership noticeably.
- Results are illustrative; real resale values and costs will vary.
Limitations & assumptions
The calculator uses your depreciation curve and simple inflation on running costs. It does not include financing terms, exact taxes, or unpredictable repairs unless you add them. Opportunity cost is a simple rate you choose. Treat outputs as directional estimates to compare scenarios, not precise forecasts.
FAQs
Quick answers
What does this calculator estimate?
It estimates the long-term cost of owning a car by combining depreciation, running expenses, inflation, and opportunity cost so you can compare scenarios.
What is included or excluded?
Included: purchase price, depreciation, running costs, inflation, and optional opportunity cost. Excluded: financing terms, taxes, and insurance specifics unless you add them to costs.
What assumptions are used?
Depreciation follows a curve from your inputs; running costs grow with your inflation setting; opportunity cost is applied at the rate you choose. Results are illustrative.
Can I save or export scenarios?
Yes. Save scenarios locally, compare them, and export summaries.
Is my data private?
Calculations run in your browser. Inputs stay on your device unless you export a file.
Is this financial advice?
No. Results are illustrative to help you frame conversations about vehicles, budgets, and trade-offs.
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