Car Running Cost Calculator
Calculate the true annual cost of running your car. Includes fuel, insurance, road tax, MOT, servicing, tyres and depreciation - not just what you spend at the pump.
Last updated: April 2026
Cost breakdown
The true cost of car ownership in the UK
Most drivers significantly underestimate the true cost of running a car because they only track what they spend at the pump. The RAC Foundation estimates the total annual cost of running a typical family car at £3,500–£5,000, but this can rise to £8,000+ for larger or newer vehicles when depreciation is included. Depreciation - the loss in value as the car ages - is typically the largest single cost of car ownership, yet it is invisible on a day-to-day basis.
Why depreciation matters
A new car loses around 15–35% of its value in the first year and 10–20% per year thereafter. A £25,000 car depreciating at 20% per year loses £5,000 in value in year one - more than most people spend on fuel over the same period. Buying a car that is 2–3 years old avoids the steepest part of the depreciation curve while still getting a reliable, modern vehicle. The lowest depreciation vehicles tend to be popular models with strong resale demand: Japanese brands, SUVs, and models with hybrid powertrains.
Comparing petrol, diesel and EV running costs
At current UK fuel and electricity prices, EVs cost around 4–6p per mile to charge at home versus 15–20p per mile for petrol. On 10,000 miles per year, that is a saving of around £1,000–£1,500 on fuel alone. However, EVs carry higher purchase prices and insurance premiums, and public rapid charging costs can approach or exceed petrol costs. The financial case for an EV improves with higher mileage, home charging access, and a longer ownership period over which the fuel saving compounds.