UK Car Running Cost Calculator

The main costs of running a car in the UK include fuel or electricity, car insurance, road tax (VED), MOT testing for vehicles over 3 years old, regular servicing and maintenance, and depreciation. Additional costs can include parking, congestion charges, breakdown cover and tyre replacement. Our calculator covers the six core cost categories to give you an accurate annual total.

The average cost per mile to run a car in the UK ranges from about 25p to 60p depending on the vehicle type, age and fuel efficiency. A small petrol car averaging 50 MPG costs around 30-35p per mile when including all running costs. Electric vehicles are cheaper at around 15-25p per mile if you charge at home. Diesel cars typically cost 35-45p per mile. Depreciation, not fuel, is usually the largest component.

Car depreciation is the loss in value over time. New cars typically lose 15-35% in their first year and around 50-60% over three years. Our calculator uses a percentage of the current car value. A common rule of thumb is 15% per year for an average car, though premium brands and electric vehicles may depreciate differently. Depreciation is usually the largest single cost of car ownership.

The average UK car insurance premium is approximately £800-900 per year for comprehensive cover. However, this varies enormously based on age, location, driving history, car type and annual mileage. Young drivers under 25 may pay £1,500-3,000 or more. Drivers over 30 with clean records in low-risk areas may pay £400-600.

Road tax (Vehicle Excise Duty) is £200 a year for 2026/27 for almost every car registered on or after 1 April 2017, once it is past its first year. That single standard rate applies to petrol, diesel, hybrid and electric cars alike: electric cars stopped being exempt on 1 April 2025, and the £10 alternative fuel discount that used to make hybrids cheaper was abolished on the same date. A new zero-emission car registered on or after 1 April 2025 pays a £10 first-year rate, then the standard rate from year two.

Cars with a list price above the threshold pay an Expensive Car Supplement of £440 a year on top of the standard rate for 2026/27. It is charged in years 2 to 6 of the car's life — that is 5 years of payments, not the first five — so an affected car costs £640 a year during that period. The threshold is a £40,000 list price for petrol, diesel and hybrid cars. Electric cars came into scope on 1 April 2025, and from 1 April 2026 they have a higher threshold of £50,000. The list price is the published price when new, including options — not what you paid.

Electric cars are still cheaper to run than petrol or diesel equivalents on energy alone: charging at home at the capped rate of about 26p per kWh works out around 8p per mile, against roughly 15-20p per mile for petrol. Public rapid charging is far more expensive and can erase the gap. Electric cars no longer avoid road tax — since 1 April 2025 they pay the same £200 standard rate as everything else, and they can attract the Expensive Car Supplement too. Servicing is usually cheaper because there are fewer moving parts, but insurance is often dearer. Total cost of ownership depends on your mileage, how you charge and how long you keep the car.

The maximum MOT test fee for a car is set by the DVSA at £54.85 and has not changed since 2010, though many garages charge less as a loss leader. Cars need an MOT from their third birthday onwards, and it must be renewed annually. The test itself is relatively cheap, but any repairs needed to pass can add significantly to the cost. Common MOT failures include tyres, brakes, lights and emissions.

Annual servicing costs vary by car type: small cars cost £150-250, medium cars £200-350, and large or premium vehicles £300-600. Electric vehicles typically cost less at £100-200 as they have fewer components needing regular replacement. Manufacturer servicing is more expensive than independent garages but may be required to maintain warranty. Budget extra for wear items like tyres (£200-600 per set) and brakes (£150-400).

For high-mileage drivers (over 12,000 miles per year), electric vehicles offer the lowest running costs despite higher purchase prices. For moderate mileage, hybrid vehicles offer a good balance. Petrol is generally cheaper than diesel for lower mileage drivers, while diesel becomes more economical over 15,000 miles per year due to better fuel efficiency. LPG conversions can also offer savings for high-mileage drivers.

Key ways to reduce car running costs include: driving economically to improve MPG by 10-20%, shopping around for insurance annually, keeping tyres at correct pressure, combining short journeys, using comparison sites for fuel prices, considering a smaller or more efficient vehicle, and planning routes to avoid congestion. For commuters, car sharing or switching to an electric vehicle for the commute can provide significant savings.