All calculators
Cars & Motoring2 min check
Car Running Cost Calculator
Step 1 of 20%
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.