Monthly Car Cost Calculator

AAA's 2025 Your Driving Costs study finds the average new car costs $964.78/month or $11,577/year at 15,000 miles. SUVs run $1,100–$1,300/month; pickups $1,300–$1,500. Subcompacts can be under $700/month. The biggest line item is depreciation ($4,334/year), often invisible to owners.

Insurance has risen faster than any other ownership cost in 2024–2025, per AAA — partly due to higher repair costs (modern car sensors, ADAS calibration), partly higher accident severity, and partly inflation. Shop with at least 3 carriers annually; consider raising deductibles ($1,000+ saves 10–25%); bundle home and auto for 5–15% discount.

Average US electricity is 17–18 cents per kWh per EIA. A typical EV uses 0.3 kWh per mile, so 1,000 miles costs about $51 at home. Equivalent gas car at 27 mpg and $3.30/gal would cost $122 — EV wins by about 60% on fuel. Charging at public DC fast chargers is 30–60 cents/kWh, much higher.

Total cost of ownership is usually similar to a comparable gas car. Hybrids save 30–40% on fuel but cost $2,000–4,000 more upfront and slightly more on maintenance. Break-even at 4–7 years for typical drivers; faster if gas prices spike or you drive 20K+ miles/year. Toyota Camry Hybrid vs. Camry gas is a common cost-tied comparison.

Biggest levers: (1) buy 2–3 year-old used instead of new — skip the steepest depreciation; (2) keep car 8+ years past loan payoff — depreciation per year drops dramatically; (3) shop insurance annually — variance is 30–50% across carriers; (4) drive 10–20% less if possible; (5) avoid extended warranties (rarely worth it).

AAA estimates $0.09–$0.12 per mile across 5 years. At 15,000 miles, that's $1,350–$1,800/year. Toyota and Honda run lower ($800–$1,200/year). German luxury (BMW, Mercedes) and Land Rover often exceed $2,500/year after warranty. Use the Vehicle History Report (Carfax) to see what the previous owners spent.

Lease wins for: drivers who want a new car every 2–3 years, business owners who can deduct lease payments, and people who don't want to deal with selling. Buy wins for: long-term holders (8+ years), high-mileage drivers (lease mileage caps charge $0.15–0.25 per excess mile), and those who modify their cars. Total 5-year cost typically favors buying for most use cases.

Common rules: 10–15% of gross income for total transportation cost (loan + insurance + fuel + maintenance). The 20/4/10 rule: 20% down payment, 4-year max loan, 10% of gross income on car payment + insurance. Federal Reserve data shows median US car payment is now $738 — many borrowers exceed prudent thresholds.