How to Calculate Car Running Cost
What is Car Running Cost?
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.
Formula
- MPG
- 60 miles per 4 — 60 miles per 4
Step-by-Step Guide
- 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
Worked Examples
Frequently Asked Questions
What is Car Running Cost?
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
How accurate is the Car Running Cost calculator?
The calculator uses the standard published formula for car running cost. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Car Running Cost calculator use?
This calculator works with inches, kilometres, miles, litres. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Car Running Cost calculator use?
The core formula is: Annual fuel cost = (Annual miles / MPG) × litres per gallon × fuel price per litre. Each step in the calculation is shown so you can verify the result manually.
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