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Total Car Ownership Calculator

Calculate the true 5-year cost of car ownership including depreciation, fuel/charging, insurance, rego, servicing, tyres and finance.

Updated 2025-26 FYData stays on your deviceVerified formula

Disclaimer

This calculator provides estimates for general information purposes only. Results are based on standard formulas and may not reflect your individual circumstances. Always consult a qualified professional for advice specific to your situation.

Frequently Asked Questions

What does it really cost to own a car in Australia?
RACV/AAA estimates average 5-year total cost is approximately $50,000-$80,000 for a mid-size car. Major components: depreciation 30-40% of total cost, fuel 15-25%, insurance and rego 15-20%, finance interest 10-15% (if financed), servicing/maintenance 10%, tyres 2-3%.
Are EVs cheaper to own than petrol cars?
Long-term yes, even though EVs cost more upfront. EV running costs are typically 60-70% lower than petrol (cheaper energy + less servicing). However, EVs depreciate faster initially due to rapidly evolving technology. Break-even is usually 4-7 years depending on kms driven and electricity rates.
How much does a car depreciate?
Average 5-year depreciation in Australia is 50-60% of the purchase price. Year 1 alone is 20-25% (driving off the lot). Brands hold value differently: Toyota/Mazda/Subaru retain ~50-60% after 5 years; luxury European brands (BMW/Audi/Mercedes) often retain 35-45%.
Should I lease, finance, or buy outright?
Outright = lowest total cost (no interest, no fees), but ties up capital. Finance = spread cost, builds ownership equity, but ~$5K-$15K extra interest over 5 years. Novated lease = best for full-time employees (pre-tax savings, especially for FBT-exempt EVs). Operating lease = no ownership, predictable monthly cost, but no equity.

What is Total Car Ownership?

The total cost of car ownership (TCO) is the full 5-year cost of buying and running a vehicle, including depreciation, fuel/charging, insurance, registration, servicing, tyres, and finance interest. Often double or triple the purchase price.

How this calculator works

This calculator applies typical Australian figures (RACV/AAA averages) to estimate your 5-year TCO. Depreciation is approximated at 50% of purchase price over 5 years. Fuel uses your specified efficiency × kms × current Australian prices ($1.95/L petrol, $2.05/L diesel, $0.30/kWh electric). Servicing varies by fuel type (EVs ~$400/yr, petrol ~$800/yr, diesel ~$1,000/yr). Finance interest is calculated using PMT formula if entered.

Why Depreciation Matters Most

Depreciation is typically the largest cost — often 30-50% of total ownership cost. A new car loses 20-25% in Year 1 alone, and ~50% by Year 5. Brands hold value differently: Toyota, Mazda, Subaru retain ~50-60% after 5 years; luxury European brands (BMW, Audi, Mercedes) often fall to 35-45%. Buying a 2-3 year old used car typically saves 30-40% vs new while losing little additional depreciation.

EV vs Petrol Total Cost

EVs typically cost $5K-$15K more upfront but save $1,500-$3,000/year on fuel and $400-$600/year on servicing. Total break-even is usually 4-7 years depending on kms driven. EV depreciation is currently faster than petrol (rapidly evolving tech, range anxiety), but this gap is narrowing as EVs become mainstream. Novated lease for an FBT-exempt EV under $91,387 dramatically improves the math.

Hidden and Missing Costs

This calculator excludes: stamp duty on purchase (3-7% of price by state), Luxury Car Tax (33% above $80,567 fuel-efficient or $91,387 EV in 2025-26), parking fees and tolls, accident excess and lost no-claim bonuses, accessory installation, and lifestyle costs like premium fuel additives. Real total cost can be 10-20% higher than the calculator estimate.

Finance vs Outright vs Lease

Outright purchase = lowest total cost (no interest, no fees) but ties up cash. Finance = spreads cost, builds equity, but adds $5K-$15K interest over 5 years. Novated lease = pre-tax savings via salary packaging, especially powerful for FBT-exempt EVs. Operating lease = no ownership, predictable monthly cost, but no equity at the end. Run the numbers for your situation — the right answer depends on your tax rate and use case.

Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.