What Is the Total Cost of Owning a Car?

Calculating the total cost of owning your car — or one you might buy soon — is the best way to make sure your auto budget is in line. But with many different factors contributing to the cost of car ownership, it can be difficult to know exactly how much your car is costing you.

Here’s what you need to know about the cost of owning a car, including common ownership expenses and some possible ways to save on them.

Regardless of your choice, you’re still likely to be paying over $500 a month whether you finance or lease a vehicle.

Fuel is one of the most variable costs of driving a car, and your fuel could be gasoline, electricity or a combination. According to AAA, drivers overall pay an average of 13 cents a mile for fuel. This is based on average prices for regular unleaded gas and electricity per kilowatt hour during a 12-month period ending in May 2025. For a 15,000-mile year, that’s $1,950 annually in fuel.

Your actual fuel expenses could be less or more than the average, depending on where you live and the type and size of vehicle you drive. Here’s a comparison of fuel costs for several different vehicle types.

Average annual fuel costs

Average annual insurance cost (full-coverage)

Overall, drivers pay an average of 11.04 cents a mile for vehicle repairs, maintenance and tires. According to AAA, this figure “includes retail parts and labor for routine maintenance specified by the vehicle manufacturer, a comprehensive extended warranty, repairs to wear-and-tear items that require service during 5 years of operation and one set of replacement tires.”

Maintenance, repair and even tire replacement costs can vary widely depending on the type of vehicle you drive. For example, an electric vehicle doesn’t have an internal combustion engine, so it won’t need oil changes. On the other hand, because EVs are heavier, their tires typically need replaced more often than a gas-powered vehicle.

Average annual maintenance costs

According to AAA, the average car owner pays $813 annually for licensing, registration and taxes to legally drive their vehicle. The state you live in determines which of these fees you will pay, how they’re calculated and the total amount you pay annually for this category. The type of vehicle also makes a big difference.

Average annual license, registration, taxes

Although depreciation isn’t a payment that has you shelling out cash, cars usually lose value over time. This loss of value means you’ll get less if you sell or trade the car, which affects your overall cost of ownership. According to the 2025 AAA study, the average annual vehicle depreciation is $4,334, but again that amount varies greatly depending on vehicle type.

Average annual depreciation cost

Use our calculator to estimate how much a car will cost you each month. The calculator is pre-populated with AAA costs for driving a new, gas-powered car 15,000 miles annually (broken down to monthly), but you can replace those with your own numbers.

Enter exact amounts for a gas, hybrid or electric vehicle you currently drive, or use these tips to estimate costs for one you’re thinking of buying.

Fuel. Here are some approaches for figuring fuel costs.

Maintenance and repairs. For a car you own, you can track your average monthly maintenance costs in the past year. For future maintenance, use the vehicle’s service and maintenance schedule to apply rough estimates. If you don’t yet own the vehicle, most auto manufacturers have owners manuals with schedules online. Unexpected repairs are difficult to predict, but if you want to account for that, add a bit extra to your estimate. Also, consider that some repairs may be covered if the car is still under warranty.

Registration, fees, taxes, miscellaneous. For a car you plan to purchase, get an estimate from your local department of motor vehicles (DMV). Some DMVs have calculators on their websites to provide an estimate. Add any other recurring expenses, such as parking costs.

Depreciation. While understanding how your car depreciates is important, average depreciation isn’t included in our total monthly car cost calculator.

*Note: See our methodology below.

While the AAA Your Driving Costs study looks at car costs annually, the cost of owning a car fluctuates from month to month as prices among cost categories change. NerdWallet’s auto ownership index measures these changes over time using inflation and spending figures from the Bureau of Labor Statistics.

Car ownership costs grew at a double-digit annual rate every month from April 2021 to November 2022, according to NerdWallet’s ownership index. That growth has slowed dramatically — the most recent data shows ownership inflation rose 2% in December 2025.

By reviewing the total cost of ownership, you can see the portion of your income that goes toward your car each month. It’s best to spend less than 15% to 20% of your take-home pay on vehicle costs, if possible.

If you need to adjust your car ownership budget, start with these items that may give you more control.