Key takeaways
- Depreciation (the value the car loses) is often one of the biggest costs
- Insurance and fuel can each cost more than $10,000 over 5 years
- Includes winter tires, parking and registration, which budgets often miss
- Compare two cars by running the calculator twice
How the calculator counts
- Depreciation: price − value when you sell.
- Sales tax: price × your province’s dealer rate.
- Interest: the interest you pay on the loan during the years you own the car (any balance left is paid from the sale and is already counted in depreciation).
- Fuel: kilometres ÷ 100 × fuel use × price per litre.
- Insurance, maintenance, registration per year × years; parking per month × months; winter tires once.
Worked example
A $30,000 car in Ontario, kept 5 years and sold for 45% of its price. $5,000 down, 7.99% over 72 months. 15,000 km a year at 8.5 L/100 km and $1.84 a litre. Insurance $2,164 a year, maintenance $1,000 a year, winter tires $1,000.
| Cost | 5 years |
|---|---|
| Depreciation | $16,500 |
| Fuel | $11,730 |
| Insurance | $10,820 |
| Loan interest | $7,318 |
| Maintenance | $5,000 |
| HST | $3,900 |
| Winter tires | $1,000 |
| Total | $56,268 |
That is about $938 a month, or 75 cents a kilometre, far more than the loan payment of about $515.
Where the example numbers come from
- Fuel price: Kalibrate reports a national average of 184.3 cents a litre for regular gasoline in August 2026. Prices differ by city: Vancouver was the highest at 218.0.
- Insurance: FSRA reports Ontario’s average premium as $2,164 a year (12 months to October 2025). Other provinces are lower on average, but newcomers often pay more than average.
- Resale value and maintenance depend on the model and how you drive. Check used listings for the same model to estimate resale.
What changes by province
- Sales tax ranges from 5% in Alberta and the territories to 15% in New Brunswick, Newfoundland and Labrador and PEI. BC charges more PST on cars priced at $55,000 or more.
- Insurance is public in BC, Manitoba and Saskatchewan, and partly public in Quebec. Ontario has the highest average premium among the provinces in the data we found.
- Fuel prices differ by city. In August 2026, Vancouver was highest in Kalibrate’s survey at 218.0 cents and Brandon, Manitoba lowest at 143.2.
- Winter tires are required in Quebec in winter and on many BC highways, and are a good idea everywhere.
Compare two cars
Run the calculator once for each car you are considering. A cheaper car with poor resale value or high insurance can cost more in total than a slightly more expensive one. Compare the cost per month, not just the price. Try a used version of the same model too: a lower price and slower depreciation can outweigh higher maintenance.
Ways to lower the total
- Buy a car that is a few years old, so the first owner takes the biggest drop in value.
- Choose a model with low insurance and fuel costs. Compare quotes before you buy.
- Put more down and choose a shorter term to cut interest.
- Drive less: in big cities, compare with transit using the car vs transit calculator.
See also the affordability calculator and the first car guide.
Common questions
What is the total cost of owning a car in Canada?
It depends on the car, the province and how much you drive. In our Ontario example, a $30,000 car costs about $938 a month over 5 years once depreciation, insurance, fuel, interest and maintenance are included.
Why include depreciation if I never pay it?
Because it is real money lost. The difference between what you pay and what you get when you sell is part of what the car cost you.
How do I compare an electric car?
Set fuel use to the cost of charging: enter kWh per 100 km as fuel use and your electricity price per kWh as the fuel price. Adjust maintenance and resale value for the model.
Are registration fees the same everywhere?
No. Each province sets its own vehicle registration and plate fees, and in some provinces basic insurance is bought with the registration. Enter what your province charges.
Sources
- FSRA (Ontario): Your average auto insurance premium
- WealthNorth: Average car insurance by province (compiles GISA, ICBC, MPI and GAA data)
- Kalibrate: Canadian petroleum price snapshot, August 2026
- CRA: GST/HST rates by province
- BC Ministry of Finance: Bulletin PST 308, PST on vehicles
- AutoTrader.ca: Price Index (Q2 2026, published Jul 14, 2026)
- ICBC: What affects your insurance costs