Question 1

How much does it cost to run a car per year in the UK?

Accepted Answer

For a typical petrol car doing 10,000 miles a year at around 45mpg, fuel alone is roughly £1,500 at current pump prices. Add road tax (VED), insurance and servicing and a typical all-in figure is often £2,500–£3,500 a year — but it swings widely with your mileage, the car's economy, your insurance group and how you drive. Use the calculator above with your own numbers for a realistic estimate.

Question 2

How is the annual fuel cost worked out?

Accepted Answer

For petrol and diesel we divide your annual mileage by the car's mpg to get gallons, convert to litres (4.546 litres per gallon), and multiply by the pump price you enter. For an electric car we divide your mileage by miles-per-kWh and multiply by your electricity price per kWh. The fuel figure is exact arithmetic on your inputs; tax, insurance and servicing are estimates you enter yourself.

Question 3

What are the main running costs of a car?

Accepted Answer

The four big ongoing costs are fuel or charging, road tax (VED), insurance, and servicing and maintenance (including tyres, MOT and repairs). Depreciation — the value the car loses over time — is usually the largest cost of all but isn't an out-of-pocket monthly bill, so this calculator focuses on the running costs you actually pay each year.

Question 4

Are electric cars cheaper to run?

Accepted Answer

Usually yes on energy and tax. Charging at home is typically far cheaper per mile than petrol or diesel, and EVs have historically paid little or no VED (this is changing from April 2025). Servicing tends to be lower with fewer moving parts, though insurance and tyres can be higher. Set the fuel type to electric above and enter your home electricity rate to compare.

Question 5

Does this include depreciation?

Accepted Answer

No. Depreciation is the biggest overall cost of car ownership but it's not a cash bill you pay each month, so we keep it out of the running-cost total to avoid double-counting. Motoring.Today shows real market prices and price positioning on every model page if you want to gauge how well a car holds its value.

Car running costs calculator

Frequently asked questions

Find a car that fits your budget