This calculator will compute your car's Miles Per Gallon and forecast your gasoline expense for one month and for one year. It also allows you to compare it against driving a car or truck that got better gas mileage to see how much money you would save.
Once you have calculated your Current MPG you can change the Comparison MPG and the calculator will instantly recalculate the savings (click on the MPG selection box and use the down-arrow on your keyboard to quickly scroll to higher MPG comparisons).
Understanding Auto Ownership Costs
Cars and trucks cost money to operate, so spending continues once they are purchased. As a car-buyer wades-in to the automobile market, a flood of cost considerations emerge. Purchase price is a primary fiscal concern, providing a starting point for budget evaluations.
The original price of a vehicle is either paid in full at the point of purchase, with cash that is readily available, or it is financed. Financing options for vehicles are generally issued under installment terms and paid back over time. First, sellers account for any trade-in allowances realized by exchanging your old vehicle for your new one. If the total trade-in value is not sufficient to cover your down payment, additional resources are required to move your deal forward. In any case, the total amounts of your trade-in and your cash down payment are shaved right off the top of your original purchase price, creating the principal balance figure used to calculate your payments.
Principal is a primary operating expense, providing the hardware required for independent transportation. Your principal balance is broken-down for repayment according to the terms of your loan, before interest is added each month, making up your entire payment obligation for the period. Interest costs are significant too, since large sums are advanced for car purchases. Rates are generally low, compared to other kinds of credit, but payments extend for years, adding-up over time.
In addition to financing costs, drivers are subject to licensing and registration fees, piling-on further to operating expenses. Even sales tax paid on your car purchase must be included in your overall analysis of what it actually costs to keep your car on the road. As if financing and licensing costs are not enough, mechanical concerns also weigh heavily on total vehicle operational budgets.
Operating Costs are Not Fixed
Evaluating transportation expenses illuminates certain costs that are not always automatically accounted for in our thinking about what it actually costs to remain mobile. Once your vehicle is paid-for, or financing arrangements have been made, your monthly obligation remains the same in that category. Ongoing costs, however, relate to how your particular vehicle performs on the road.
Older cars with high-mileage likely require more ongoing repairs and maintenance than new, or late model vehicles. The trade-off for buyers is found in lower purchase prices. While new cars may be more reliable, the greatest degree of depreciation occurs early in a car's life span. As a result, even vehicles that are a few model years old are priced far below the cost of brand new ones.
Another vehicle characteristic, which occasionally flies under the radar, is MGP, or miles per gallon. the standard rating system is used by watchdog agencies to designate mileage expectations for new vehicles. For you, the consumer, MPG represents bang for your buck on gas purchases. Upgrading mileage performance has a significant impact on vehicle owners' bottom line, offering money saving opportunities for those who choose to pursue fuel-friendly driving. Miles per gallon calculator helps isolate monthly gasoline costs, as well as furnishing a wider-range snapshot of annual fuel consumption.