Cars & Motoring2 min check

Car Running Cost Calculator

Estimate the true monthly cost of running a car — including fuel or charging, insurance, tax, servicing and depreciation.

Short answer

Annual car running cost = depreciation + fuel/electricity + insurance + VED tax + servicing/MOT + tyres + parking. The average UK car costs £3,500–£5,500/year to run, with depreciation usually the biggest line and fuel second.

Step 1 of 20%

Calculation method, coverage and version

Inputs used: Fuel type, Annual mileage, Approximate car value, Annual insurance, Annual road tax, Annual servicing & maintenance.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Cars & Motoring. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

How it works

We sum all annual costs into a £/year and £/mile figure. Depreciation is the silent killer — a £25k new car typically loses £4–6k in year one alone. Fuel cost = annual miles ÷ MPG × £/gallon (4.546 L per gallon).

Worked example

£20k 3-year-old hatchback, 8,000 miles/year, 50 MPG petrol at £1.45/L: depreciation £2,500, fuel £1,058, insurance £600, tax £190, service £350, MOT/tyres £200 → ~£4,898/year (61p/mile).

Who should use this

•Anyone buying a car who wants the true cost
•People comparing two models
•Households deciding to keep, replace or go car-free

Common mistakes

×Ignoring depreciation (often the biggest cost)
×Using showroom MPG instead of real-world (usually 15-20% lower)
×Forgetting parking permits, congestion charges and tolls
×Not budgeting for major repairs (clutch, cambelt, dual-mass flywheel)

Frequently asked questions

What's the cheapest car to run?▾

Small efficient hatchbacks (Yaris hybrid, Picanto, Corsa) and small EVs charged at home are typically £2,500–£3,500/year.

Are EVs really cheaper to run?▾

Yes if charged at home — typically 4–8p/mile vs 14–18p for petrol. Public rapid charging closes the gap.

Should I lease or buy?▾

Lease is predictable and includes servicing. Buying outright wins long-term if you keep the car 6+ years.

Related calculators

Fuel vs EV →Depreciation →Car Tax (VED) →PCP vs Lease →