Definition
Total cost of ownership
Total cost of ownership adds up every cost of having something over its whole life, rather than looking only at the purchase price or the monthly payment. For a car that means the payment, insurance, fuel or charging, maintenance, tyres and taxes.
It is the only fair way to compare two options, because a cheaper purchase price is often offset by higher running costs.
Tools that use this term
Car Affordability Calculator
The full monthly cost of a car, and whether it fits inside your budget.
Fuel Cost Calculator
What your driving costs in fuel each month and each year, and the cost per mile.
EV Charging Cost Calculator
What charging an electric car costs per month, and how it compares with petrol or diesel.
Total Cost of Ownership Calculator
Everything a car costs: depreciation, finance, fuel, insurance, tax, servicing and repairs.