Car Ownership Break-even Mileage Calculator

Results

Fixed annual ownership cost $4,900.00

Variable ownership cost per mile $0.22 fuel or energy $0.12

Alternative fixed per year $0.00

Alternative per mile $0.90

Break-even annual mileage

7,171 miles per year

At this mileage total ownership cost equals the alternative. Drive more and ownership wins drive less and the alternative wins.

At your expected mileage (12,000 miles)

Ownership yearly total: $7,500.00
Alternative yearly total: $10,800.00
Ownership cost per mile: $0.63
Savings choosing ownership vs alternative: +$3,300.00

Tip: To lower cost per mile increase expected miles or reduce fixed costs or improve efficiency.

Formulae

Fixed annual ownership = Depreciation per year + Insurance + Registration and taxes + Financing interest + Parking

Depreciation per year = (Purchase price − Resale value) / Years kept

Ownership variable per mile = Fuel or energy per mile + Maintenance per mile + Other wear per mile

Break even miles = (Alternative fixed per year − Fixed annual ownership) / (Ownership variable per mile − Alternative per mile)

If the denominator is non positive a positive break even does not exist. In that case one option dominates across all mileages.

Assumptions

All inputs are after tax nominal amounts.
Maintenance and other wear are modeled per mile to capture tires and service.
Fuel or energy per mile uses your chosen unit system.
Alternative travel cost per mile should include surge and tips if relevant.

FAQs

How is break even mileage calculated

It is the point where total ownership cost equals the alternative total cost using fixed yearly expenses and per mile rates.

What costs count as fixed vs variable

Fixed includes depreciation insurance registration financing and parking. Variable includes fuel or electricity maintenance tire wear and repairs.

Can I compare ownership with a transit pass

Yes set an alternative fixed per year for the pass and a per mile rate for any additional rides if needed.

How do I estimate maintenance per mile

Use historical service spending divided by miles or use a guide from your vehicle class and age to approximate per mile maintenance.

Does financing principal affect the model

Only interest should be counted as a yearly cost because principal is captured by depreciation between purchase and resale values.

How are electric vehicles handled

Choose electric units and enter efficiency in kilowatt hours per one hundred miles and your electricity price. The tool converts to a per mile energy cost.

What if there is no positive break even

It means one option is always cheaper. Adjust inputs or constraints since fixed and per mile structures may strongly favor one choice.