Total Cost of Ownership Calculator
Work out what a car or appliance really costs you over its lifetime once running costs and resale value are included.
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Net cost over the full ownership period
- 1
Annual running cost
2,000 + 1,200 + 800 + 400 = 4,400Fuel + Insurance + Maintenance + Tax/Fees per year. - 2
Cumulative running cost
4,400 × 5 = 22,000 - 3
Total cost of ownership
30,000 + 22,000 − 12,000 = 40,000Purchase price plus running costs minus resale value.
How does this calculator work?
Total cost of ownership adds the purchase price to all yearly running costs (fuel, insurance, maintenance, fees) over the years you keep the item, then subtracts its resale value. Dividing that figure by the years, or by months, shows the true cost per year and per month so you can compare options fairly.
Formula
How this is calculated
The calculator first adds your recurring yearly expenses — fuel or energy, insurance, maintenance, and tax or registration fees — into a single annual running cost. This is multiplied by the number of years you own the item to capture everything you spend while keeping it.
Total cost of ownership (TCO) then adds the upfront purchase price to those cumulative running costs and subtracts the resale (or trade-in) value you recover when you sell it. The difference between purchase price and resale value is the depreciation, usually the single largest line for cars. Dividing the TCO by the number of years gives the cost per year, and dividing by years × 12 gives the cost per month, which makes it easy to compare options budgeted differently.
All amounts share whatever currency you enter, and annual figures are assumed constant across the ownership period. Years must be greater than zero. The model ignores the time value of money (no discounting or inflation) and any financing interest, so for loan or lease comparisons add the interest you expect to pay into the fees field.
Frequently asked questions
TCO is the complete cost of owning something over time: the purchase price plus all running costs, minus the money you get back when you sell it. It gives a truer picture than the sticker price alone.
Depreciation is the difference between what you paid and the resale value. It is captured automatically because TCO subtracts resale value from the purchase price, and for most cars it is the biggest cost of all.
No. The model assumes constant annual costs and ignores financing interest and the time value of money. To approximate a loan or lease, add your expected interest into the tax/fees field.
Also known as
TG we-Calculate Editorial Team. (2026). Total Cost of Ownership Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/cost-of-ownership-calculator
TG we-Calculate Editorial Team. "Total Cost of Ownership Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/cost-of-ownership-calculator.
TG we-Calculate Editorial Team, "Total Cost of Ownership Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/cost-of-ownership-calculator
@misc{wecalculate_cost_of_ownership_calculator, title = {Total Cost of Ownership Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/cost-of-ownership-calculator}}, year = {2026}, note = {TG we-Calculate} }
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