Should I include depreciation?

Yes for a full picture. Look at similar cars 12 months older with similar miles, subtract, and add that drop to your annual total.

Are electric cars cheaper to run?

Often on “fuel” and tax, sometimes on servicing — but insurance, tyres and home charger costs vary. Plug your real numbers in rather than assuming.

What about ULEZ and congestion charges?

Add them under “other annual costs” if you drive into charging zones regularly. A non-compliant car can wipe out any purchase saving.

How accurate is the fuel line?

It uses the same UK MPG formula as our fuel calculator. Real economy depends on your routes — update MPG after a few tanks.

Ownership calculator

Car running costs calculator

Estimate the true annual cost of owning a UK car — fuel, insurance, road tax, servicing, tyres and the “everything else” bucket that catches parking, wipers, bulbs and unexpected repairs. Use it to compare two cars before you buy.

Annual assumptions

Annual mileageReal-world UK MPGFuel price (£/litre)Insurance (£/year)Road tax (£/year)Servicing (£/year)Tyres (£/year average)Other (£/year)

Estimated annual running cost

£2865

Per month: £239
Fuel: £1465
Fixed costs: £1400
Per mile: £0.29

What counts as a running cost

Purchase price and finance get the attention, but depreciation, fuel, insurance and maintenance often dominate year two onwards. A cheaper car with worse economy or higher insurance can cost more over three years than a slightly dearer, cleaner model.

This calculator adds liquid fuel using UK MPG, then layers typical fixed costs. It does not estimate depreciation or finance interest — add those separately if you are comparing a PCP with cash purchase.

Replace the defaults with quotes from your insurer, the GOV.UK tax figure for the registration, and realistic service history for that exact engine.

Example annual budgets

10,000-mile petrol hatchback at 45 MPG

Fuel alone at £1.45/litre is roughly £1,465 a year. Add £650 insurance, £190 tax, £280 servicing and £160 tyres and you are already near £2,745 before parking or repairs.

High-mileage diesel vs small petrol

At 18,000 miles a year, a 55 MPG diesel can beat a 40 MPG petrol on fuel by several hundred pounds — but check DPF risk if most trips are short.

Young driver insurance shock

For new drivers, insurance can dwarf fuel. Run the calculator with a realistic quote before falling for a powerful trim that looks cheap to buy.

Frequently asked questions

Should I include depreciation?: Yes for a full picture. Look at similar cars 12 months older with similar miles, subtract, and add that drop to your annual total.
Are electric cars cheaper to run?: Often on “fuel” and tax, sometimes on servicing — but insurance, tyres and home charger costs vary. Plug your real numbers in rather than assuming.
What about ULEZ and congestion charges?: Add them under “other annual costs” if you drive into charging zones regularly. A non-compliant car can wipe out any purchase saving.
How accurate is the fuel line?: It uses the same UK MPG formula as our fuel calculator. Real economy depends on your routes — update MPG after a few tanks.

Related tools and guides

MotorTools calculators give planning estimates only. Confirm figures against GOV.UK, your V5C, handbook or a qualified garage before buying, renewing tax or carrying out work.