Car budget calculator: What does your car cost per month?
A car budget must cover more than fuel and loan payments. Insurance, taxes and repair bills must be paid, and the car typically loses value along the way. Here you can collect the items and see both the average monthly cost and the payments your account needs room for.
Worked example
- Purchase price: 43,024.50 CAD
- Expected sale price: 30,276.50 CAD
- Ownership period: 36 months
- Kilometers per year: 15,000 km
- Down payment: 8,604.90 CAD
- Interest rate: 5 % per year
- Term: 60 months
- Arrangement costs and fees: 430.25 CAD
- Energy: 1,274.80 CAD
- Insurance: 1,497.89 CAD
- Vehicle tax: 525.86 CAD
- Service and tires: 860.49 CAD
- Repairs: 430.25 CAD
The car costs on average
853 CAD per month
0.68 CAD per km · 30,715 CAD over 36 months
| Cost | 36 months |
|---|---|
| Depreciation | 12,748 CAD |
| Interest | 3,769 CAD |
| Arrangement costs and fees | 430 CAD |
| Running costs | 13,768 CAD |
| Total | 30,715 CAD |
What you pay from your account
- At purchase: 8,605 CAD
- Every month 1–36: 1,032 CAD
- At sale, after remaining debt: 15,471 CAD
Loan repayments are not a cost; they reduce the debt. Depreciation is the difference between the purchase and sale price. Interest is calculated as an amortizing loan with a fixed rate.
Which expenses are included?
Enter the purchase price of the car, the expected sale price and the period you want to keep it. Then add financing, energy, insurance, taxes, service and tires. Annual bills are spread over the months, so they are easier to budget for.
Principal payments and depreciation are different things. Principal payments reduce the debt. Depreciation is the difference between the purchase price of the car and its later value. They are shown separately, so the same capital cost is not counted twice.
How to use the car budget
Start with your own bills
Use the insurance premium and the latest service costs as a starting point. Consider setting aside a separate amount for repairs that do not come every year. The expected sale price is an estimate that you can change.
Example of depreciation
If the car costs 200,000 and is sold for 140,000 after three years, the depreciation is 60,000. That is about 1,667 a month before other expenses.
Also try a lower sale price. It shows how sensitive the budget is to the value of the used car. Use the lease or buy calculator if you want to compare two different ways of having a car.