Car Running Cost Calculator
What your car really costs each year.
Calculate true annual car running cost. Sum insurance, fuel, maintenance, road tax, inspection fees, and depreciation to see real cost of ownership.
What this tool does
This tool sums the six components of annual car ownership: insurance, fuel, maintenance, road tax, MOT, and depreciation. Enter each annual cost and the calculator shows cash running costs, total including depreciation, and monthly equivalents. Cash costs represent the actual money you pay each year for ongoing expenses. Total cost adds depreciation—an accounting measure of the car's value loss over time—to show the full economic cost of ownership. The result illustrates how these six factors combine to define what car ownership costs in your circumstances. Insurance, fuel, and maintenance typically vary most between vehicles. For leased cars, depreciation is already included in the lease payment, so entering zero avoids counting it twice. The figures shown are illustrative estimates based on the inputs you provide.
Quick answer: with the default values, the result is $4,920.00 (Annual True Cost of Ownership). Adjust the values below for your own figures.
Enter Values
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Formula Used
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
The advertised cost of a car is rarely the actual cost of owning one. The monthly payment or purchase price is one line item; insurance, fuel, maintenance, road tax, MOT, and depreciation add 2,500-6,000 more annually for a typical driver. This calculator sums all six to show the true yearly and monthly cost.
Typical breakdowns for a mid-sized petrol car: insurance 500-1,200, fuel 1,000-2,200 (10,000 miles at typical mpg and prices), maintenance 300-700, road tax 150-600 depending on emissions, MOT 35-55, depreciation 1,500-3,500 depending on age and mileage. Total 3,485-8,255 - often more than the loan or finance payment itself.
The tool separates cash running costs from depreciation because they behave differently. Cash costs must be budgeted and paid; depreciation is an accounting loss that becomes real only when the car is sold. For leased cars, depreciation is baked into the monthly payment, so set it to zero. For owned cars, including it gives the honest picture.
A worked example
With the defaults: insurance of 700, fuel of 1,500, maintenance of 500, road tax of 180. The tool returns 4,920.00.
What moves the number most
The result responds to Insurance (Annual), Fuel (Annual), Maintenance (Annual), Road Tax (Annual), and MOT (Annual).
The formula behind this
Cash costs = insurance + fuel + maintenance + road tax + MOT. Total = cash costs + depreciation. Monthly = total / 12.
When the result says "wait"
If the payback is longer than you expect to keep the item, the math says no. That's useful information — not everything has to earn its keep financially, but knowing when something doesn't means the decision to buy it anyway is deliberate.
Insurance $700 + fuel $1,500 + maintenance + tax + MOT + depreciation = $4,920.00 total annual.
Inputs
| Cash Running Costs | $2,920.00 |
|---|---|
| Depreciation | $2,000.00 |
| Monthly Cash | $243.33 |
| Monthly Total (Incl. Depreciation) | $410.00 |
This example uses sample figures for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
The calculator computes total annual car running costs by summing six cost components: insurance, fuel, maintenance, road tax, MOT fees, and depreciation. Insurance, fuel, maintenance, road tax, and MOT represent direct cash outflows during the year. Depreciation represents the estimated loss in vehicle value over twelve months, treated as an ownership cost even though no cash changes hands. The calculator assumes each cost component remains constant throughout the year and does not account for seasonal variation, inflation, or changes in driving patterns. Monthly running cost is derived by dividing the annual total by twelve. The model does not include one-off costs such as major repairs, accident damage, or financing charges.
Frequently Asked Questions
Why include depreciation separately?
How do I estimate depreciation?
What about finance costs?
Is driving less always cheaper?
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