Compare total annual car ownership cost versus public transport

The Hidden Cost of Car Ownership

The purchase price is just the beginning. Total car ownership cost includes insurance, fuel, registration fees, servicing, tyres, parking, depreciation, and financing charges. For most urban drivers, these costs add up to the equivalent of several months' salary per year — significantly more than equivalent public transport use.

The Car-Free Calculation

Eliminating a car and replacing with public transport, occasional car rental, and taxis can save urban residents a meaningful sum each year. This calculator runs the full comparison and shows where your money goes in each scenario.

What People Often Overlook

Depreciation is one of the most commonly missed costs. A new car can lose 15–35% of its value in the first year alone. Many people find this surprises them more than any other figure. It is worth considering too that parking costs — whether a monthly permit, daily charges, or a dedicated space — quietly add up over twelve months. Even a modest daily parking fee can translate into a significant annual expense. Small numbers have a habit of becoming large ones.

Making a Meaningful Comparison

One approach is to think about your actual usage rather than your hypothetical usage. How often do those long weekend trips really happen? It can help to track a typical month honestly before drawing conclusions. This kind of comparison is rarely black and white — it depends on where you live, how you work, and what flexibility matters most to you. The figures here are illustrative estimates, not personal financial advice.

Quick example

With annual fuel/charging cost of 1,800 and annual insurance of 900 (plus annual depreciation of 2,000 and equivalent annual transit cost of 1,200), the result is 3,500.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Annual Fuel/Charging Cost, Annual Insurance, Annual Depreciation, and Equivalent Annual Transit Cost. Two inputs usually tip the answer one way or the other. Identify which ones matter most by flipping each value past a round threshold and watching whether the winning option changes.

What's happening under the hood

This calculator estimates potential savings and payback periods based on typical usage patterns and the inputs provided. Actual results depend on local pricing, climate, usage habits, and other factors. Results are for illustrative and educational purposes only. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Beyond the number

Carbon, health, and local air quality don't show up on the calculator but often drive the decision. The financial figure is a lower bound on the value; the rest is whatever you'd pay for the non-financial benefits.

What this doesn't capture

Carbon reduction, health benefits, and local air quality have real value the financial figure doesn't price. The calculation gives the money side honestly; for the full picture, note the non-financial benefits alongside.