Updated Checked by the Tax-Services.ca editorial team How we check
A new $35,000 car kept for 6 years in Ontario costs about $965 a month to own. That’s $11,581 a year, or $0.77 per kilometre at 15,000 km a year. The loan payment is only $597 of it; depreciation, 13% HST, insurance, fuel and repairs make up the rest. These are estimates built on stated assumptions, and your own quotes will change them.
Fill in your price, insurance quote, fuel use and kilometres. The tool adds everything up, subtracts what the car should still be worth, and divides by the years you keep it.
What does it really cost to own a car each year?
Over six years the example comes to $69,485. Depreciation is the biggest piece, with insurance and fuel next. You have the most say over those two, through the car you pick and how much you drive.
| Cost over 6 years | Amount | Share |
|---|---|---|
| Depreciation | $22,576 | 32% |
| Sales tax at purchase | $4,550 | 7% |
| Loan interest | $8,449 | 12% |
| Insurance | $13,200 | 19% |
| Fuel | $13,388 | 19% |
| Maintenance and repairs | $6,602 | 10% |
| Registration | $720 | 1% |
How is depreciation estimated?
The calculator takes 15% off the car’s value each year, and at least 20% in the first year of a new car, so the $35,000 car is worth about $12,424 after six years. Those percentages are assumptions, not market data. Real values depend on the model, the mileage and the used market, so check recent listings for the same car and change the percentage if you find a better figure. A car that holds its value well can cut the total by thousands. Loan interest comes from a 7.49% loan over 6 years with $5,000 down, and sales tax comes from the Canada Revenue Agency GST/HST rates and provincial sales taxes.
How do I get the cost per kilometre?
Divide the total cost by the kilometres you drive over the years you own the car. The example divides $69,485 by 90,000 km, which gives about $0.77. Drive 30,000 km a year and the cost per kilometre falls to $0.46, while the monthly cost rises to $1,151 because you’re buying twice the fuel. Cost per kilometre is a better yardstick than monthly cost when you’re comparing a long commute with a short one.
Does a used car change the answer?
It cuts the monthly cost, though maybe not the cost per kilometre by much. Take a 4-year-old car bought for $18,000 in Alberta (5% GST only, so $900 of tax), kept 5 years at 12,000 km a year with $1,800 of insurance and $1,500 of first-year repairs. It costs about $700 a month, or $8,399 a year. That’s $0.70 per kilometre, because repairs take a bigger share. For the loan side alone, use the car loan calculator, and set the rest of the budget with the budget calculator.
Where does this information come from?
Sales tax rates come from the CRA GST/HST page and provincial finance departments through this site’s sales tax data. All other figures come from this site’s own estimate and from the assumptions you enter. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Is depreciation a real cost if I never sell?
Yes, because the car loses value even if you keep driving it. You only feel it when you sell or trade, but it's usually the largest line, 32% of the cost in the example.
Why is the monthly cost higher than my loan payment?
The loan payment covers the price and interest only. Insurance, fuel, repairs, registration and the drop in value all add to it. In the example the payment is $597 and the full monthly cost is $965.
How much should I budget for maintenance?
It depends on the car and its age, so check your own service history. The example starts at $900 in the first year and adds 8% each year, which is an assumption you can adjust.
Can I use this for an electric vehicle?
Yes. Enter 0 for fuel use, then put charging and home charger costs under maintenance. Depreciation for EVs can be faster, so raise the yearly value loss if your model is dropping quickly.