Calculating the total cost of owning your car — or one you might buy soon — is the best way to make sure your auto budget is in line. But with many different factors contributing to the cost of car ownership, it can be difficult to know exactly how much your car is costing you.

Here’s what you need to know about the cost of owning a car, including the average monthly payment, common ownership costs and how to go about saving money while still driving a car you love.

The average monthly payment on a new car was $734 in the second quarter of 2024, according to credit reporting agency Experian. Leasing a new car was cheaper at $586 a month, and owning a used car was the cheapest option, with an average monthly payment of $525. Regardless of your choice, you’re still likely to be paying over $500 a month whether you finance or lease a vehicle.

But that’s far from the true cost to own a car, when you take into account loan interest, depreciation, fuel, insurance, maintenance and fees. And the overall cost continues to climb.

In its 2024 Your Driving Costs study, AAA says average ownership costs for a new vehicle driven 15,000 miles annually is $12,297 a year, or $1,024 a month. That's an increase of $115 since last year's study.

Regardless of the car you drive, you’re likely to have to pay for these items on a regular basis.

Fuel

With prices changing almost daily, fuel is one of the most variable costs of driving a car. According to AAA, the average driver paid around 14.9 cents a mile for regular unleaded gas during a 12-month period ending in May 2024. Over a 15,000-mile year, that’s $2,235 annually just in gas.

The good news is that fuel costs vary by the type and size of vehicle you drive and where you live, so your actual fuel expenses could be less than the average. You can use a gas mileage calculator to determine your annual gas expense.

» MORE: Average gas prices by state

Maintenance and repairs

The average cost of repairs, maintenance and tires is $126 a month for a new car, according to AAA. Common maintenance costs include oil changes and tire rotations, which are usually done at 5,000-mile intervals or, in this scenario, three times each year.

While you’ll likely need to pay for your normal maintenance brought on by wear and tear, you won’t have to pay for certain repair costs if your car is still under the factory warranty or an extended warranty. Manufacturer warranties are typically for three years or 36,000 miles, whichever you hit first.

If your car isn’t under warranty, set aside some money for repairs each month, whether they’re needed or not. This keeps you from wondering how to pay if an unexpected repair is needed.

» MORE: Tips for cutting car maintenance costs

Registration, fees and taxes

According to AAA, the average car owner pays $815 annually for licensing, registration and taxes to legally drive their vehicle.

How these fees are calculated, how often they are paid and how much they cost vary by state. Where you live and the type of fees you have to pay will determine how much you have to pay annually for this category.

Insurance

Almost every state requires some auto insurance coverage. The average annual premium for full-coverage insurance runs car owners $1,715, according to AAA.

But the cost of insurance is influenced by several factors, including the selected coverage, the type of car you drive, your age, your driving record and your location. Depending on your circumstances and coverage options, you might pay more or less than the average premium.

» MORE: Compare car insurance rates

Depreciation

Although depreciation isn’t a payment that has you shelling out cash, cars usually do lose value over time. This loss of value means you'll get less if you sell or trade the car, which affects your overall cost of ownership.

It's important to note that the current car market is a unique one. Car prices skyrocketed in the past several years due to pandemic-driven vehicle shortages. As car supply has returned to normal, car prices have begun a slow and fairly steady decline. This means cars purchased in the past few years could lose value faster than in the past. In a normal market, cars lose around 15% to 20% of their value in their first year. Over each of the next four years, depreciation will be around 15% per year.

According to AAA, the average annual vehicle depreciation in 2024 is $4,680. To get an idea of how much your car has depreciated, compare current offers on the same make and model to what you paid for it originally. You can find your car’s resale value through a service such as Kelley Blue Book. Or get a cash offer from a local dealer or an an online auto retailer such as Carvana or CarGurus.

You can use our calculator and enter your exact expenses to see how much your car is costing you each month. The calculator is pre-populated with estimates based on 15,000 miles of driving per year. While knowing how much your car has depreciated is important, average depreciation isn't included in our total monthly car cost calculator.

Monthly car payments and insurance premiums are self-explanatory, but here’s more information on estimating other costs of car ownership.

Gas. If you know how much you usually spend on fuel, enter that amount in the calculator. Otherwise, divide the number of miles you drive each month by your car’s fuel economy rating, available on FuelEconomy.gov. Multiply that number by the price of a gallon of gas in your area.

Maintenance and repairs. You can go with the monthly average that’s pre-populated based on AAA’s data. But if your car has needed a lot of work lately and is costing you more than $1,500 a year in work, calculate the exact figure for what you’ve paid in the past 12 months, divided by 12, and enter it here.

Registration, fees, taxes and miscellaneous. Enter your annual motor vehicle registration renewal amount, divided by 12. Add any other recurring expenses such as parking costs.

*Note: The total car cost calculator is pre-populated with estimates based on data from Experian and AAA. See our methodology below.

While the AAA Your Driving Costs study looks at car costs annually, the cost of owning a car fluctuates from month to month as prices among cost categories change. NerdWallet's auto ownership index measures these changes using inflation figures from the Bureau of Labor Statistics.

Car ownership costs grew at a double-digit annual rate every month from April 2021 to November 2022, according to this NerdWallet Vehicle Ownership Costs Index. While that growth has slowed overall, the most recent data indicates ownership inflation was 11% in May. And since April 2019, the costs — including gas, repairs and maintenance, parking, insurance and licensing costs — have risen 38%.

By reviewing the total cost of ownership, you can see the portion of your income that goes toward your car each month. It’s best to spend less than 15% to 20% of your take-home pay on vehicle costs, if possible.

If you find you’re over your car budget and want to reduce spending, look at your big-ticket items first and work your way through costs you can control.

• Car payment. If interest rates have dropped since you took out your car loan, or your credit has improved since buying your car, you may be able to refinance your car to a better rate and lower the monthly payment.

• Insurance premiums. Talk with your current insurance provider about potential discounts. If they won’t help you get a better rate, get quotes from other insurers to locate a better deal on your coverage.

• Gas. Use a gas price app to locate the cheapest prices. Also, look into the best gas credit cards that give you cash back at the pump.