Annual Car Running Cost Calculator
All-in annual cost: fuel, insurance, tax, servicing, depreciation.
Calculate the full annual cost of car ownership: fuel, insurance, road tax, servicing, tyres, and depreciation. See true per-mile cost.
What this tool does
Enter your annual mileage, fuel efficiency rating, fuel cost per litre, insurance, road tax, servicing costs, tyre replacement budget, and estimated annual depreciation. The calculator aggregates these seven cost categories to estimate your total annual running expense, then divides by mileage to show cost per mile driven. The result illustrates how fixed costs (insurance, tax) and variable costs (fuel, tyres) combine across a full year. Fuel expense typically dominates for high-mileage drivers, while depreciation often represents the largest single component for newer vehicles. The tool assumes consistent mileage and stable input values throughout the year; actual costs vary with driving patterns, fuel price fluctuations, and maintenance surprises. Results are for comparison and planning purposes only, not a guarantee of actual expenses.
Enter Values
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Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
The true cost of car ownership is typically (commonly cited at 30-60%) higher than headline monthly payment or purchase price implies. Most owners focus on fuel as the main running cost, but across a year, insurance, depreciation, servicing, tyres, and road tax often exceed fuel spending. Getting to a realistic annual number changes how people think about vehicle choices — the difference between a 20k and 30k car isn't 10k, it's roughly 10k plus meaningful difference in annual running costs for years.
The categories: fuel (annual mileage × cost per mile based on efficiency), insurance (annual premium), road tax/registration (varies by jurisdiction and vehicle), servicing (annual service + periodic major services averaged), tyres (roughly 300-600/year averaged depending on mileage and type), depreciation (by far the largest hidden cost — typically 10-15% of value per year for new cars, less for older).
Per-mile cost is the useful denominator. Once you know your all-in cost per mile, decisions about whether to drive vs use public transport, rent a car vs own, or keep vs replace become much clearer. Typical per-mile ranges: 0.40-0.80 depending on car and usage. Commercial per-mile (the tax authority mileage allowance) is 0.45 for first 10k miles — useful reference.
How to use it
Enter annual mileage, fuel efficiency (MPG or litres/100km depending on your preference), fuel cost per litre, annual insurance, road tax, annual servicing estimate, tyres budget, and annual depreciation. The tool produces total annual cost and per-mile cost.
What the result means
Annual cost is the real budget figure for car ownership. Per-mile cost is the decision tool — useful for comparing alternatives and deciding whether specific trips are worth the marginal cost. Most people are surprised how high per-mile runs once all categories are counted.
Budgeting tool, not financial advice. Costs vary by vehicle, location, and driving pattern.
At 10,000 miles/year and 45 MPG on fuel priced at £1.45, the total annual running cost is 4,444.82.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Converts gallons (UK imperial = 4.546 L, US liquid = 3.785 L — select the matching MPG system) to litres via miles / MPG, then multiplies by price for fuel cost. Sums all six categories for total annual cost. Divides by annual mileage for per-mile cost.
References
Frequently Asked Questions
How do I estimate depreciation?
Include finance interest?
What about parking and tolls?
Is the per-mile figure realistic?
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