Is Your Car Making You Poor? Calculate the Real Cost of Your Vehicle
Is your car crushing your finances?
Is My Car Making Me Poor?
Enter your car costs to see your true monthly cost including depreciation, cost per mile, % of income, and rate/mileage sensitivity. Results update live.
Monthly Costs
Oil, tires, repairs — averaged monthly
Fuel & Usage
Depreciation
15% typical · 20–25% new yr 1
Results are estimates only and do not constitute financial, tax, or legal advice. Consult a qualified professional before making financial decisions.
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Most people think of their car costs as the loan payment. The actual cost of car ownership is typically 2–3x that number — and when people finally see the full picture, it's often a financial shock. Beyond the monthly payment: fuel (often $150–300/month), insurance ($100–250/month), maintenance ($100–200/month averaged over time), registration ($50–200/year), and depreciation — the silent cost that averages $3,000–6,000/year on most vehicles in the first few years. Add it all up and a $500/month car payment often represents $900–1,100/month in true vehicle costs, which is 20–30% of many households' take-home pay going to one asset that loses value every day. This calculator builds the complete picture. Enter your loan details, insurance, fuel consumption, maintenance estimates, and the vehicle's current and projected value, and it calculates your true total monthly cost, cost-per-mile, and the percentage of your income consumed by this one vehicle. It also shows you what you'd need to save monthly to replace the car at the end of the loan — because after the loan ends, the car still depreciates. The goal isn't to make you hate your car. It's to give you the full financial picture so you can make intentional decisions: whether your current car is genuinely affordable, whether that upgrade you're considering is financially sound, or whether downsizing could free up meaningful cash flow.
- →You feel financially stressed and want to see if your car is a major contributor
- →Considering buying or leasing a new vehicle and want to compare true total costs
- →Evaluating whether to keep your current car or trade in and buy something different
- →Budgeting for transportation and want the real per-mile and per-month cost
- →Calculating whether a cheaper car with worse gas mileage is actually less expensive
Diego drives a 2022 SUV with a $650/month payment, $180/month insurance, 18 MPG at $3.80/gallon driving 1,200 miles/month ($253 fuel), $120/month averaged maintenance, and the vehicle depreciating about $4,200/year ($350/month). His real monthly cost is $1,553 — not the $650 payment he thinks of. At 1,200 miles/month, that's $1.29/mile. On his $85,000 salary ($5,667 take-home), the car consumes 27% of his income. The calculator flags this as above the 15–20% threshold.
What percentage of income should go to car costs?
Most financial advisors recommend keeping total vehicle costs (including all ownership costs) under 15–20% of take-home pay. The car payment alone should ideally be under 10–15% of take-home pay. If your vehicle costs exceed 20% of take-home pay, it's typically classified as financially burdensome and worth reassessing.
How do I estimate depreciation for my specific car?
New cars lose about 20–25% of value in year 1, and 15% per year after. Luxury and sports cars depreciate faster. Trucks and certain SUVs hold value better. Check your car's current value at KBB.com or Edmunds, then compare to what you paid (or its value 1 year ago) to find actual depreciation. The calculator uses an estimated annual rate that you can adjust.
Should I include depreciation if I own the car outright?
Yes — depreciation is a real economic cost even if you don't feel it monthly. Every year you drive a paid-off car, it's worth less, and you'll have less money when you eventually sell or trade it in. A paid-off car with high depreciation and maintenance costs may be less economical than a newer one with lower running costs. Depreciation must be in the calculation for an honest picture.
What's the cheapest way to get from point A to point B?
Research consistently shows that reliable used cars (3–5 years old, purchased outright or with a short loan) have the lowest total cost of ownership. New cars carry massive first-year depreciation. Very old cars have lower depreciation but higher maintenance costs. The sweet spot is typically a 3–7 year old reliable make (Toyota, Honda, Mazda) bought below market or at fair value.
What if I need a car for work — does the math change?
If your car is required for income generation, the cost becomes a business expense, often tax-deductible (IRS standard mileage rate is $0.67/mile in 2024 for business use). In that context, the car's cost-per-mile vs. income-per-mile matters more than the percentage of salary. The IRS mileage deduction is designed to cover the true all-in cost of vehicle operation.