1. What is Total Cost of Ownership?

The Total Cost of Ownership (TCO) is a financial estimate that helps consumers determine the direct and indirect costs of owning an electric vehicle over its lifetime. It includes the purchase price plus operating costs minus the resale value.

2. How Does the Calculator Work?

The calculator uses the TCO formula:

Where:

• Purchase price — Initial cost of the vehicle
• Annual operating cost — Yearly expenses including charging, maintenance, insurance, etc.
• Years — Duration of ownership
• Resale value — Estimated value at end of ownership period

3. Importance of TCO Calculation

Details: Calculating TCO helps compare the true cost of different vehicles beyond just the purchase price, accounting for long-term expenses and depreciation.

4. Using the Calculator

Tips: Enter all values in dollars. For accurate results, research realistic estimates for annual operating costs and projected resale value based on your specific vehicle model and usage patterns.

5. Frequently Asked Questions (FAQ)

Q1: What's included in annual operating costs?
A: Typically includes charging/electricity costs, maintenance, repairs, insurance, registration fees, and any other recurring expenses.

Q2: How do I estimate resale value?
A: Look at similar used vehicles of the same model and age. Consider that EV batteries degrade over time, affecting resale value.

Q3: Does this account for tax credits or incentives?
A: No, you should subtract any applicable tax credits or rebates from the purchase price before entering it.

Q4: How accurate is this calculator?
A: It provides a basic estimate. Actual costs may vary based on driving habits, electricity rates, and unexpected repairs.

Q5: Should I include financing costs?
A: For a complete picture, you could add loan interest payments to the annual operating costs if financing the vehicle.