Car Running Cost Calculator UK

What goes into the cost of running a car

The cost of running a car in the UK splits into two kinds. Standing costs land every year whatever your mileage: insurance, road tax (VED), the MOT and a budget for servicing and repairs. Running costs rise with how far you drive, and fuel is the big one. This calculator adds the standing costs to a fuel figure worked out from your mileage, so the total reflects your car rather than a national average. Switch to full cost of ownership to fold in depreciation and any finance payment as well.

How the fuel cost is worked out

Fuel is calculated from three numbers: your annual mileage, your car's fuel economy in miles per gallon, and the pump price per litre. Because a UK MPG figure uses the imperial gallon, the sum is miles ÷ mpg × 4.546 × price per litre. At 7,000 miles a year, 45 mpg and £1.50 a litre, that is roughly 156 gallons, about 707 litres, or around £1,060 of fuel a year. The pump price default is the UK average for the week commencing 13 July 2026, £1.50 a litre for unleaded and £1.65 for diesel, and it moves week to week, so put in what you actually pay. A car doing more miles, or one that returns fewer miles per gallon, costs more to fuel, which is why mileage and economy move the total the most.

Insurance, road tax and MOT

Insurance is usually the largest standing cost. The ABI put the average comprehensive premium paid in the UK at £560 a year in the first quarter of 2026, though yours depends on your car, age, postcode and history, so use your own quote. Road tax for most cars registered since April 2017 is a standard £200 a year, with a higher first-year rate based on emissions and an expensive car supplement of £440 a year for five years on cars with a list price over £40,000. The MOT is capped at £54.85 for a car, and new cars are exempt for their first three years. All three are pre-filled above and every one is editable.

Servicing, depreciation and finance

Servicing and maintenance covers routine services, tyres, brakes and the odd repair. A reasonable budget is £300 to £600 a year, higher for older or larger cars and for main-dealer servicing. Depreciation, the value a car loses over time, is the cost drivers most often forget, and on a newer car it can dwarf everything else, commonly 10 to 20% of the car's value a year. Finance payments sit on top again. Running costs only shows the money you spend keeping the car going; full cost of ownership adds depreciation and finance for the real picture of what the car costs you.

A worked example

Take a petrol car doing 7,000 miles a year at 45 mpg with fuel at £1.50 a litre. Fuel comes to about £1,060. Add £560 of insurance, £200 of road tax, the £54.85 MOT and a £400 servicing budget, and the running total is around £2,275 a year, or about £190 a month. Now switch to full cost of ownership: add £2,500 of depreciation and a £250 monthly finance payment, another £3,000 a year, and the true cost jumps to roughly £7,775 a year, close to £650 a month. Same car, very different number, depending on what you count.

Frequently asked questions