Car Running Cost Calculator
FUEL (CALCULATE OR ENTER ANNUAL)
OTHER ANNUAL COSTS
The true annual cost of running a car goes far beyond fuel. Fixed costs (insurance, road tax, MOT) remain the same regardless of miles driven, while variable costs (fuel, tyres, servicing) scale with usage. The average UK motorist spends £3,000–£5,000 per year on car running costs.
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Tip: Depreciation is the largest hidden cost for new car owners — a new car loses 15–35% of its value in year one. Buying a 2–3 year old car avoids the steepest depreciation while still getting a nearly-new vehicle.
- 1Annual fuel cost = (Annual miles / MPG) × litres per gallon × fuel price per litre
- 2UK gallon = 4.546 litres; 60 MPG = 60 miles per 4.546 litres = 13.2 km/L
- 3Add: insurance + road tax + MOT + servicing + tyres + depreciation
- 4Cost per mile = Total annual cost / Annual miles
10,000 miles/year, 40 MPG, £1.50/L, £900 insurance, £200 tax, £300 service=~£3,100/year or 31p/mileFuel: £1,700 + £1,400 fixed costs
| Cost Category | Budget Car | Mid-Range | Premium |
|---|---|---|---|
| Insurance | £600–£900 | £800–£1,500 | £1,500–£3,000+ |
| Road tax (VED) | £0–£180 | £180–£400 | £400–£600+ |
| Fuel (10K miles) | £900–£1,200 | £1,200–£1,700 | £1,500–£2,500 |
| Servicing / MOT | £200–£350 | £350–£600 | £600–£1,500 |
| Tyres (annual) | £80–£150 | £150–£300 | £300–£600 |
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