Car Repair vs Replace Calculator
Compare keep-and-repair versus replacement costs over your chosen timeline.
Last updated: How it is calculated
Decision Inputs
Nobody knows what either car will be worth in a few years. Set a yearly rate instead — the site uses 10 % for a car that is already a few years old and 20 % for the first years of a newer one, the same curve as the car ownership calculator.
Current car after 3 years: $6,561.00
Replacement after 3 years: $11,776.00
Decision Results
Recommendation: Keep and Repair
Estimated difference over 3 years: $2,485.00
Keep & Repair Total
$16,939.00
Replace Total
$19,424.00
Keep Monthly Equivalent
$470.53
Replace Monthly Equivalent
$539.56
Breakdown
Decision Tips
- •Use realistic resale values from current local listings, not optimistic targets.
- •Keep running-cost assumptions consistent between both options for fair comparison.
- •Recalculate after each major repair quote, because one large repair can change the recommendation.
How it is calculated
Formula
Keep = repair now + running costs × years + depreciation of the current car Replace = depreciation of the new car + fees + running costs × years Decision = whichever total is lower Both sides start from the same asset — the car you own today. When replacing, its value offsets the purchase price directly, which is why it does not appear a second time.
What this calculator does not account for
- The residual values are derived from a yearly rate: 10 % for the current car, 20 % for the newer one. That is our own assumption, not a published figure, and both sides of the comparison rest on it.
- The breakdown risk of an older car cannot be priced and is not in the model.
- Finance costs for the replacement car are excluded.
- Non-monetary reasons such as safety, comfort or emissions are not weighed.
About This Calculator
The Car Repair vs Replace Calculator compares two options over a chosen timeline: keep and repair your current car, or replace it and run a newer vehicle. It combines depreciation, running costs, and repair assumptions to support a clear cost-based decision.
How to Use This Calculator
- 1
Set your analysis timeline and current car value now versus expected value at the end.
- 2
Add immediate repair needs plus expected annual repairs and running costs for your current car.
- 3
Enter replacement car price, expected end value, annual running cost, and purchase fees.
- 4
Compare total and monthly equivalents, then use break-even repair cost to validate the decision.
Why Use This Calculator
Structured Decision Framework
Compare both options with the same timeline and assumptions so the decision is transparent and consistent.
Account for Depreciation
Include value loss of both vehicles instead of comparing only short-term repair invoices.
Use Break-Even Logic
See the repair threshold where replacing starts to make financial sense under your current assumptions.
Frequently Asked Questions
Major cost drivers are immediate repairs, recurring running costs, depreciation, and replacement acquisition cost net of current car value.
Yes, as annual running costs for both options. Differences in insurance and fuel efficiency often influence the final recommendation.
Use conservative local listings and valuation ranges for similar mileage and condition at your target timeline end date.
Not always. Compare the repair amount against total replace cost over your timeline and check the break-even repair value before deciding.
Use a horizon aligned with your ownership plan, commonly 2-5 years. Short and long horizons can produce different recommendations.
Re-run when repair quotes, resale values, or running-cost assumptions materially change so your decision stays up to date.
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Disclaimer: This calculator provides estimates for planning purposes only. Actual costs may vary based on your circumstances, location, and market conditions. Not financial advice. See our Terms of Service for full disclaimers.