FAQ
Frequently asked questions about total cost of ownership
What is the total cost of ownership (TCO) of a car?
TCO is the sum of everything a car costs you while you keep it: purchase price or lease payments, fuel or energy, insurance, road tax, maintenance, tyres and interest, minus the value you get back when you sell it.
How do you calculate the TCO of a car?
Add up every cost month by month and subtract the resale value at the end. If you wish, TELOS can also add the lost return, what your money would have earned if kept invested: it is optional and 0 by default.
Is it better to pay cash, take a loan or lease?
It depends on mileage, duration, rates and prices. Cash avoids interest but ties up capital; a loan costs interest; a lease costs more each month but includes services and you carry no resale risk. TELOS compares all three with your numbers.
Is an electric car cheaper than a petrol car?
It is often cheaper to run (energy, maintenance, tax) but costs more to buy and may lose value faster. It usually pays off if you drive a lot and charge mostly at home: TELOS shows after how many km it breaks even.
What is the difference between the nominal rate and the APR?
The nominal rate is the interest on the loan without fees. The APR includes all fees and is the right number to compare two loans.
Is TELOS free? What happens to my data?
TELOS is free and needs no sign-up. All calculations run in your browser: the numbers you enter are not sent to any server. Every formula is public on the "How we calculate" page.