Continue from total car ownership cost
Test the value-loss input, document the complete ownership method or compare another powertrain without reducing the decision to fuel price.
Where does the cost of this car come from?
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Total cost of ownership is wider than the fuel bill
The price paid at the dealer is not the same as the economic cost of using a car. Part of the purchase price remains in the vehicle and may be recovered when it is sold. The lost value is depreciation. Insurance, registration, maintenance and finance costs can continue even when annual mileage is low, while fuel, electricity or hydrogen usually changes more directly with distance.
This calculator follows a transparent ownership equation instead of inserting a national average. Every result belongs to the entered vehicle, use pattern, holding period and prices. It can therefore model a new or used car and any supported powertrain without claiming that one technology is always cheaper.
The output is an average across the selected years. Real cash flow is uneven: purchase happens at the beginning, repairs can arrive suddenly and resale happens at the end.
The complete ownership-cost formula
Average annual and monthly cost simply divide that total by years and by 12. Cost per kilometre divides by every kilometre driven during the period; cost per mile uses the same total with distance converted to miles.
Purchase price is included once. Loan principal is not an additional cost because it finances that purchase. Only interest and lender fees belong in the finance-cost field. Otherwise the same vehicle value would be counted twice.
This is a nominal cash-cost model. It does not discount future costs to present value or apply inflation automatically.
Depreciation: use purchase price and a defendable resale value
Depreciation is normally one of the largest ownership categories, yet it is often invisible until the vehicle is sold. The model uses:
The annual figure is a period average, not a claim that market value falls in a straight line. New vehicles can lose value faster early, used vehicles may follow a flatter path, and market conditions, mileage, condition, specification, warranty and powertrain demand can change the eventual sale price.
Create at least a conservative and optimistic resale scenario. If the result changes strongly, the buying decision depends more on residual value than on a small energy-price difference.
Powertrain energy is calculated consistently
| Mode | Annual energy calculation | Price basis |
|---|---|---|
| Fuel / HEV | Annual km × L/100 km ÷ 100 | Price per litre after US/UK gallon conversion |
| PHEV | Fuel for engine kilometres + grid kWh for electric kilometres | Fuel and electricity priced separately |
| BEV | Battery kWh ÷ charging efficiency | Blended paid price per grid kWh |
| Hydrogen FCEV | Annual km × kg/100 km ÷ 100 | Price per kg H₂ |
For PHEV and EV modes, set separate charging losses to 0% when the entered kWh/100 km already comes from a wallbox or charging invoice. For a non-plug-in HEV, use fuel mode: regenerative braking changes fuel economy but no external electricity is bought.
Recurring annual costs need a realistic reserve
Insurance and vehicle tax can often be taken from a renewal notice or official calculation. Maintenance and repair are harder because the next invoice is unknown. A useful annual reserve combines scheduled service with an evidence-based allowance for wear and repairs appropriate to age, warranty and mileage.
Tyres are separated because a set may last several years. Divide expected purchase, fitting, storage and seasonal costs across the period in which they will occur. Parking, toll permits and access charges can be substantial for a city vehicle even when it travels few kilometres.
Use “other vehicle costs” for recurring items not already represented, such as washing, roadside assistance or a battery lease. Do not place household expenses or costs already inside another field there.
One-time setup and finance costs
One-time costs can include delivery, initial registration, inspection before purchase, accessories required for the intended use and the net cost of home charging equipment. Enter only costs that belong to this ownership decision and subtract any clearly applicable grant or rebate before entering the net amount.
Finance cost is total interest and lender fees over the selected period, not the monthly payment multiplied by months. A payment includes repayment of principal, and principal is already represented by purchase price minus resale value. If the loan period extends beyond the ownership period, use the financing cost attributable to the analysed horizon and account for the remaining balance consistently.
The Loan Payment Calculator can produce total interest and a balance schedule; transfer the relevant interest and fees, not the borrowed principal.
Ownership-cost breakdown
The table translates each category into a total over the selected period and its share of overall cost. A large share identifies the assumption worth checking most carefully.
| Cost category | Total over ownership period | Share of total | Average / year |
|---|---|---|---|
| — | |||
Annual-distance sensitivity
The following scenarios change annual distance by −20% and +20%. Purchase, resale, fixed annual inputs and ownership years remain unchanged, while propulsion energy changes with distance.
| Scenario | Annual distance | Energy / year | Total / year | Cost / km |
|---|---|---|---|---|
| — | ||||
This is not a complete wear model. Maintenance, tyres and resale value may also change with mileage in reality; edit those inputs when comparing substantially different use patterns.
Where to obtain the inputs
| Input | Practical evidence | Check |
|---|---|---|
| Purchase and one-time cost | Signed offer, invoice and setup quotes | Use the net amount actually payable. |
| Resale value | Comparable older vehicles, trade-in quotes and conservative scenario | Match age, mileage, condition and equipment. |
| Annual distance | Odometer history, commute and planned journeys | Separate one exceptional year from normal use. |
| Energy consumption | Fill-to-fill history, vehicle app or long-term meter | Use the correct unit and charging-loss boundary. |
| Insurance and tax | Personal quote and official local rule | Do not rely on another driver or region. |
| Maintenance and tyres | Service schedule, workshop quotes and replacement history | Include age- and mileage-related work. |
| Finance cost | Credit agreement or amortization calculation | Use interest and fees, not principal. |
Worked example: five-year fuel-car ownership
A used car costs €24,000 and is expected to sell for €11,000 after five years. It travels 15,000 km annually. Energy costs €1,650 per year, recurring non-energy costs total €3,100 per year, one-time costs are €600 and financing interest/fees total €2,000.
- Depreciation = €24,000 − €11,000 = €13,000.
- Five years of energy = 5 × €1,650 = €8,250.
- Five years of recurring costs = 5 × €3,100 = €15,500.
- Total ownership cost = €13,000 + €8,250 + €15,500 + €600 + €2,000 = €39,350.
- Average annual cost = €7,870; monthly cost = €655.83.
- Total distance = 75,000 km; cost per km = €0.525.
Practice for students and apprentices
An EV is bought for €36,000 and expected to retain €18,000 after six years. It travels 18,000 km/year at 19 kWh/100 km battery-side consumption. Charging losses are 5% and electricity costs €0.30/kWh. Insurance, tax, maintenance, tyres, parking and other costs total €3,000/year. One-time charging setup costs €1,200 and total finance cost is €2,400. Calculate total, annual, monthly and per-kilometre ownership cost.
- Battery energy/year = 18,000 × 19 ÷ 100 = 3,420 kWh.
- Grid energy/year = 3,420 ÷ 0.95 = 3,600 kWh; electricity cost = €1,080/year.
- Depreciation = €36,000 − €18,000 = €18,000.
- Total = €18,000 + 6 × (€1,080 + €3,000) + €1,200 + €2,400 = €46,080.
- Annual = €7,680; monthly = €640.
- Lifetime distance = 108,000 km; cost per km = €0.427.
Common double-counting errors
- Adding every loan payment after purchase price has already been included.
- Adding depreciation and also subtracting resale value from an already depreciated vehicle cost.
- Counting wallbox cost under one-time setup and annual other costs.
- Applying charging losses to a consumption figure already measured at the grid.
- Using PHEV weighted fuel consumption as engine-mode consumption.
- Entering a five-year tyre total into a field labelled per year.
- Including fuel in annual other costs and again in the powertrain section.
- Comparing cost per mile from one scenario with cost per kilometre from another.
Limits and the next Automotive calculator
The model assumes constant annual distance, prices and recurring-cost inputs. It does not model inflation, tax changes, discount rates, irregular major repairs, warranty probability, time spent charging, business tax treatment or environmental externalities. Actual resale value remains uncertain until sale.
Use several scenarios instead of hiding uncertainty inside one average. A low/high resale value, energy-price range and maintenance reserve usually reveal more than an extra decimal place.
Next comes the Car Depreciation Calculator: it will focus specifically on future value, annual loss, retained value and multiple depreciation patterns without duplicating the complete ownership-cost page.