Real Annual Car Cost Calculator
How much your car really costs per year, adding up everything that's almost never accounted for when estimating it "by eye": depreciation (the value it loses each year, usually the biggest and most forgotten item), insurance, maintenance, road tax, fuel, and other expenses.
How is it calculated?
Annual depreciation = (purchase price − estimated resale value after N years) ÷ N years of ownership. Total annual cost = annual depreciation + insurance + maintenance + road tax + fuel + other expenses, all on an annual basis. The cost per kilometer is that total divided by the kilometers you drive per year — useful for comparing against alternatives like public transit or the pure fuel cost per kilometer.
Examples
25,000 car, resale 12,000 after 5 years, 15,000 km/year
Total annual cost: 5,200 (0.35 per km). Depreciation: 2,600 per year.
18,000 car, resale 8,000 after 6 years, 12,000 km/year
Total annual cost: 3,596.67 (0.30 per km). Depreciation: 1,666.67 per year.
What to include for a realistic cost
Besides fuel and depreciation, this cost should include insurance, maintenance, and taxes (registration/road tax) to reflect the real cost of owning the car for a full year. If you're weighing the alternative of not buying it, compare this result against leasing or against gas vs. electric if you're torn between powertrains.