Car Ownership Cost Calculator

Q: How much does it cost to own a car per year?

The average annual cost of car ownership in the US is $8,000-$12,000, including fuel, insurance, maintenance, depreciation, taxes, and fees.

Q: What is the biggest cost of owning a car?

Depreciation is the single largest expense, accounting for 35-55% of total ownership costs. A new car loses 20-30% of its value in the first year alone.

Q: Are electric cars really cheaper to own?

EVs save $720+/year on fuel but higher depreciation often cancels these savings in the first 5-7 years. Over 8+ years, the fuel savings eventually win out.

Q: Which state has the cheapest car insurance?

Ohio has the cheapest car insurance at approximately $900/year, while Michigan is the most expensive at approximately $2,600/year.

The True Cost of Car Ownership

Most people only think about the monthly payment. But car ownership involves five major costs that add up to $9,000-$12,000 per year on average — and your state can swing that by 30% or more.

Where Your Money Goes

📉 Depreciation

The biggest hidden cost. A new car loses 20-30% of its value in year one. Over 5 years, depreciation accounts for 30-40% of total costs.

⛽ Fuel

At 12,000 miles/year, fuel costs range from $960 (compact) to $2,133 (truck). EVs cost just $480/year for charging.

🛡️ Insurance

Varies wildly by state. Michigan averages $2,600/year while Ohio is $900/year. Your car type and credit score also matter.

🔧 Maintenance

Oil changes, tires, brakes, and repairs. Luxury cars cost 2x more to maintain than compacts. EVs have the lowest maintenance costs.

Annual Cost by Car Type (US Average)

Car Type	Fuel	Insurance	Maintenance	Annual Total
Luxury Sedan	$1,371	$1,875	$1,920	$12,100
Pickup Truck	$2,133	$1,700	$1,520	$11,153
SUV	$1,477	$1,375	$1,420	$9,572
Sedan	$1,200	$1,200	$1,320	$8,940
Compact	$1,067	$1,100	$1,220	$7,967
EV	$480	$1,625	$1,120	$9,475

How to Use This Calculator

Pick your car type — Sedan, SUV, truck, compact, luxury, or electric. Each has different fuel, insurance, and maintenance profiles.
Select your state — Insurance rates, gas prices, and registration fees vary dramatically. Michigan is 3x Ohio for insurance.
Enter purchase price — The biggest cost is depreciation, and it's directly tied to what you paid. Be honest about what you'd actually spend.
Set annual mileage — The default is 12,000 miles (US average). More miles = more fuel and maintenance.
Review your breakdown — See exactly where your money goes each year, plus a 5-year cost projection.

Frequently Asked Questions

How much does it cost to own a car per year?

The average annual cost of car ownership is $8,000-$12,000, including fuel, insurance, maintenance, depreciation, taxes, and fees. A compact car costs about $8,000/year while a luxury sedan exceeds $12,000/year.

What is the biggest cost of owning a car?

Depreciation is the single largest expense, accounting for 35-55% of total ownership costs. A new car loses 20-30% of its value in the first year. Fuel is #2 for gas cars, while insurance is typically second for EVs.

Are electric cars really cheaper to own?

EVs save $720+/year on fuel and $100-200/year on maintenance, but higher depreciation often cancels these savings in the first 5-7 years. Over 8+ years, the fuel savings win. See our EV vs gas car comparison for the full math.

Which state has the cheapest car insurance?

Ohio has the cheapest car insurance at ~$900/year, while Michigan is the most expensive at ~$2,600/year. Your state can double or halve your insurance costs. View our insurance by state guide for the full ranking.

Select your car