Motor Vehicle Running Costs Calculator

Running costs are the ongoing expenses of keeping a car on the road: fuel or electricity, insurance, road tax (VED), servicing and repairs, and depreciation (the fall in the car's value each year). Most online guides leave out depreciation even though it is usually the single biggest cost for a private car.

Around £3,484 a year, or about 49p per mile, based on an average annual mileage of roughly 7,100 miles (NimbleFins, 2026 data). Your own figure will vary a lot depending on your car's value, fuel type, mileage and where you live.

Depreciation and servicing & repairs. Most free tools only estimate fuel cost and sometimes insurance. Because depreciation is often the largest single running cost for a private car, leaving it out understates the true cost of ownership significantly.

Annual mileage is divided by your car's miles-per-gallon figure to get gallons used, converted to litres (1 UK gallon = 4.54609 litres), then multiplied by the price per litre. For an electric car, annual mileage is divided by miles-per-kWh efficiency and multiplied by the price per kWh.

Electric cars don't use miles per gallon — the closest equivalent is miles per kWh. Most modern EVs manage 3 to 4.5 miles per kWh depending on the model, driving style and season.

Largely, yes, under the rules in force from April 2025 onward. Electric cars lost their VED exemption and now pay the same standard rate as petrol and diesel cars from their second year of registration (£200 from 1 April 2026), though first-year rates still vary by CO2 emissions and zero-emission cars pay a lower first-year rate.

Depreciation is usually the largest cost of owning a car, often larger than fuel. This tool uses a simple flat-rate estimate (current value × your chosen annual rate) because a precise depreciation curve depends on the specific make, model, mileage and condition — treat it as a budgeting estimate, not a valuation.

A commonly used range is 15-20% per year for the first few years, slowing to 8-12% per year once a car passes five years old. Prestige and electric models can depreciate faster in the first year; some reliable, popular models depreciate more slowly.

No — usually the opposite. Fixed costs like insurance, road tax, servicing and depreciation don't change much with mileage, so spreading them over more miles usually lowers your cost per mile, even though your total annual spend goes up. Only the fuel/energy portion scales directly with distance.

Based on current UK averages, fuel-only cost is roughly 7p/mile for a typical EV against 15-20p/mile for a typical petrol car, driven mainly by the lower cost per unit of electricity versus petrol. Total running cost also depends on insurance, servicing and depreciation, which can be higher or lower for an EV depending on the model.

Leasing and dealership quotes often use their own assumptions for depreciation, or exclude it entirely by amortising it into a monthly lease payment. This tool separates every cost so you can see and adjust each assumption individually.

The formulas work for any vehicle, but company car tax (Benefit in Kind), business mileage rates and fleet insurance follow different rules not covered here. Use HMRC guidance for company car tax specifically.

No. This tool estimates the ongoing annual cost of running a car you already own or are comparing, not the purchase price itself. Depreciation captures the loss in value over the year, which is the closest running cost proxy for the purchase decision.

Use the placeholder defaults as a starting estimate — they reflect UK averages — then swap in your own renewal quote or last invoice once you have it, for a more accurate personal total.

No. This is an estimate for budgeting and comparison only. It is not financial, insurance, tax or purchasing advice. Always check current prices, your own insurance quote, and your vehicle's actual specification before making a financial decision.

At least once a year, or whenever fuel prices move significantly, your insurance renews, or you're comparing a change of vehicle or fuel type. VED rates and the Ofgem price cap are also reviewed periodically and can change your figures materially.