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

AAA's 2025 study estimates about $11,577 a year for an average new car driven 15,000 miles. Older, paid-off cars usually cost less, mainly because depreciation and finance costs are lower.

What is the biggest cost of owning a car?

For new cars, depreciation, according to AAA. For older cars, maintenance, repairs and insurance often take over.

How do I calculate cost per mile?

Add all yearly costs, including depreciation, and divide by the miles you drive in a year.

Should I include depreciation?

Yes. You don't pay it monthly, but you get it back as lower resale value when you sell.

How can I track my real car costs?

Log every fuel, service, insurance and fee payment. An app like CarO records expenses per car and shows reports by period.

Cost of Car Ownership Calculator (2026) / CarO

Written by Muneeb Rana · Last updated 21 October 2026

Quick answer: A cost of car ownership calculator adds every running cost: depreciation, fuel, insurance, maintenance and tires, finance interest, and registration and taxes. Divide by miles driven for cost per mile. AAA's 2025 study puts the average new car at $11,577 a year at 15,000 miles, about 77 cents a mile, but your own figures will differ.

TL;DR

Enter each cost per year, or use AAA averages as a starting point.
See totals per year, per month and per mile.
Replace estimates with real numbers from your expense log.

This cost of car ownership calculator shows what your car really costs to keep on the road. Most people know their loan payment and fuel bill, but depreciation, insurance, maintenance and fees can double the total. Seeing the per-mile figure helps with decisions like keeping vs selling, or driving vs taking transit.

How to use the cost of car ownership calculator

Enter annual miles driven.
Enter yearly costs: fuel, insurance, maintenance and tires, finance interest, registration and taxes, parking and tolls, and depreciation.
Not sure? Click Use AAA averages to fill typical new-car figures, then edit.
Read the totals per year, per month and per mile, plus a breakdown chart.
Export the result as CSV.

How the cost of car ownership calculator works

annual_total = depreciation + fuel + insurance + maintenance + finance + fees + parking_tolls
monthly      = annual_total / 12
per_mile     = annual_total / annual_miles

AAA 2025 average (new car, 15,000 mi/yr)	Amount
Depreciation	$4,334 / yr
Insurance	$1,694 / yr
Finance charges	$1,131 / yr
License, registration, taxes	$813 / yr
Fuel	13.0 cents / mile
Maintenance, repair, tires	11.04 cents / mile
Total	$11,577 / yr

Worked example

Using AAA's averages: fuel 15,000 × $0.13 = $1,950; maintenance 15,000 × $0.1104 = $1,656; plus fixed costs of $7,972 = $11,578 a year (AAA rounds to $11,577), about $965 a month or 77 cents per mile.

Where the averages fall short

AAA's figures cover new cars kept five years. An older paid-off car may have little depreciation and no finance cost, but higher repair bills. Insurance varies hugely by location and driver. Use the averages to start, then replace each line with real numbers from your receipts or the car expense tracker.

Cut the biggest costs

Shop insurance yearly, keep up with maintenance to avoid big repairs, drive smoothly to save fuel (how to improve fuel economy), and compare financing with the car loan calculator and lease vs buy calculator. The depreciation calculator shows how much value you lose by keeping vs trading.

Driving for work?

If you drive for rideshare or delivery, see Uber driver expenses and the mileage reimbursement calculator.

Download CarO free on the App Store or Google Play. Free with ads; optional in-app purchases.

Sources

AAA: Your Driving Costs 2025 fact sheet: newsroom.aaa.com (accessed 21 October 2026)
AAA: Estimate Vehicle Ownership Costs: www.aaa.com (accessed 21 October 2026)
CFPB: Auto loans: www.consumerfinance.gov (accessed 21 October 2026)
FHWA: Our Nation's Highways 2026, Drivers: www.fhwa.dot.gov (accessed 21 October 2026)

Disclaimer: CarO and this website give general car-care information, not professional advice. Maintenance intervals and specifications vary by vehicle, so always follow your owner's manual and a qualified mechanic. Mileage and cost figures are estimates; check local tax rules before using any log for deductions.

Cost of Car Ownership Calculator