Car Running Cost Calculator UK
Add up fuel or electricity, insurance, road tax, servicing, MOT, parking and finance into one annual figure.
By Prakash, Editor
Published 13 August 2026
Updated 15 October 2026
Sources: ABI · GOV.UK · Ofgem · TfL
How does the running cost calculator work?
The calculator adds up the regular costs of keeping a car on the road: fuel or electricity, insurance, road tax (VED), servicing and repairs, the MOT, and optionally parking and finance. It gives you one annual figure, a monthly equivalent and a cost per mile.
For petrol, diesel and hybrid cars it converts your MPG into litres used (1 UK gallon = 4.546 litres) and multiplies by your fuel price. For electric cars it works from miles per kWh and your electricity price per kWh. The defaults are starting points: petrol 174p and diesel 199p a litre (UK averages on 14 October 2026), and 26p/kWh for electricity (the Ofgem price-cap average is 26.32p/kWh from 1 October 2026, but your tariff, or a public charger, will differ).
Depreciation isn't included. It depends on the specific car, its age and condition, so there's no reliable universal formula. It is often the largest cost of owning a car, so see the section on costs the calculator leaves out.
3 worked examples
These examples use the same formula as the calculator. Insurance is the ABI Q2 2026 average (£566) for the petrol and diesel cars. Servicing, and the electric car's insurance, are my own assumptions for illustration.
Example 1 — Petrol hatchback, 8,000 miles a year
8,000 miles/year · 35 MPG · petrol at 174p/litre · £566 insurance · £200 VED · £250 servicing
Fuel cost:(8,000 ÷ 35) × 4.546 = 1,039 litres × £1.74 = £1,808
Total:£1,808 fuel + £566 insurance + £200 tax + £250 servicing + £54.85 MOT = £2,879/year (≈£240/month)
Example 2 — Diesel estate, 15,000 miles a year
15,000 miles/year · 50 MPG · diesel at 199p/litre · £566 insurance · £200 VED · £350 servicing
Fuel cost:(15,000 ÷ 50) × 4.546 = 1,364 litres × £1.99 = £2,714
Total:£2,714 fuel + £566 insurance + £200 tax + £350 servicing + £54.85 MOT = £3,885/year (≈£324/month)
Example 3 — Electric car charged at home, 8,000 miles a year
8,000 miles/year · 3.5 mi/kWh · electricity at 26p/kWh · £650 insurance (assumed) · £200 VED · £150 servicing (assumed)
Energy cost:(8,000 ÷ 3.5) × £0.26 = £594
Total:£594 energy + £650 insurance + £200 tax + £150 servicing + £54.85 MOT = £1,649/year (≈£137/month)
The £200 VED assumes an electric car registered from 1 April 2025. Older electric cars may pay a different rate, so check the Road Tax Calculator or GOV.UK. Public rapid charging usually costs much more per kWh than home charging, which would raise the electric total.
The same 8,000-mile driver can pay very different amounts depending on fuel type, charging method and mileage. Run your own numbers above.
What goes into the figure, and where the defaults come from
I don't quote a single "UK average running cost" on this page, because the published figures I could find use different assumptions and years and I couldn't tie them to one reliable source. Instead, these are the individual inputs I could check:
- Insurance: the ABI reports an average motor insurance premium of £566 in Q2 2026.
- Fuel: UK averages on 14 October 2026 were 174.1p/litre for petrol and 199.1p/litre for diesel (Fuel Finder UK, using the government Fuel Finder feed).
- Electricity: the Ofgem price-cap average unit rate is 26.32p/kWh from 1 October 2026 (default tariff, Direct Debit, Great Britain).
- MOT: the maximum fee for a car MOT test is £54.85.
- Road tax: cars registered from 1 April 2017 pay a £200 standard rate (plus a supplement for expensive cars). Older cars use different tables.
Where you live matters too. London drivers can face the Congestion Charge, which TfL raised to £18 a day on 2 January 2026 (electric cars get a 25% discount through Auto Pay), and parking costs vary widely between cities and rural areas.
Example budget using the calculator's defaults
This is the petrol hatchback from Example 1, shown by category. It is an illustration, not a national statistic.
| Category | Amount | Basis |
|---|---|---|
| Fuel | £1,808 | 8,000 miles, 35 MPG, 174p/litre |
| Insurance | £566 | ABI average premium, Q2 2026 |
| Road tax (VED) | £200 | GOV.UK standard rate, cars registered from April 2017 |
| MOT | £54.85 | Maximum fee for a car |
| Servicing & repairs | £250 | Assumption: replace with your own figure |
| Total (excluding depreciation) | £2,879 |
Common calculation mistakes
Using official MPG instead of real-world MPG
Official figures come from standardised tests and are often more optimistic than what you get on the road. Use your own fuel-use records, or an owner-reported figure, for a more realistic fuel cost.
Leaving out depreciation when comparing cars
Leaving it out doesn't make it zero. If you're comparing new against used, add an estimated depreciation figure to the running costs calculated here.
Using an old fuel price
Pump prices move from week to week. Update the fuel price field to what you actually pay, and see our Fuel Cost Calculator.
Assuming servicing cost stays the same as a car ages
Older cars generally need more repairs and replacement parts, so an estimate based on a newer car may be too low.
Using the default insurance figure
£566 is a national average premium. Your own premium depends on age, location, claims history and the car, so use your real quote or renewal.
Using the wrong electricity price for an EV
Home charging, a special EV tariff and public rapid charging can have very different prices per kWh. Enter the price for how you actually charge.
How to reduce your annual car running costs
- Compare insurance quotes at renewal every year. Staying with the same insurer automatically can cost more.
- Consider telematics (black box) insurance if you are a careful, low-mileage driver, though it isn't right for everyone.
- Keep up with servicing on schedule to avoid bigger repair bills later.
- Check tyre pressures regularly. Under-inflated tyres wear faster and can use more fuel.
- Get quotes from independent garages once any warranty has ended.
- Charge at home if you drive electric, as public rapid charging usually costs more per kWh.
- Check whether you need the car for every journey. For very low mileage, a car club or alternatives may be cheaper.
For more ideas, see our guide: How to Reduce Car Running Costs in the UK.
How we calculate
Fuel cost (petrol/diesel/hybrid) = (annual mileage ÷ MPG) × 4.546 × fuel price per litre
Energy cost (electric) = (annual mileage ÷ mi/kWh) × electricity price per kWh
The total is fuel or energy cost + annual insurance + annual road tax + annual servicing + parking (monthly × 12) + finance (monthly × 12, if entered) + the £54.85 maximum MOT fee. Cost per mile is the total divided by annual mileage.
The comparison card measures your total against the petrol hatchback in Example 1, calculated with the same formula. It is a reference point only, not an official average. If you enter finance, your total will be higher than that example, which has none.
Frequently asked questions
How much does it cost to run a car in the UK?
It depends heavily on the car and how much you drive. With this page's defaults (a petrol hatchback doing 8,000 miles a year), the calculator gives about £2,879 a year before depreciation, tyres, breakdown cover and parking. Your own figure could be quite different.
Does this calculator include depreciation?
No. Depreciation depends on the specific car, its age and condition, so it is not included. It is often the largest single cost of ownership, so estimate it separately.
How accurate is the fuel cost figure?
It is as accurate as the MPG (or mi/kWh) and price you enter. Real-world economy is often worse than official test figures, so use your own records where you can.
How much is the London Congestion Charge?
£18 a day since 2 January 2026, for vehicles that aren't exempt or discounted. Check TfL for the current charge, hours and discounts before you drive in.
Should I include my car finance payment?
Include it if you want your total to reflect your actual monthly outgoings. Leave it at £0 if you want a pure running-cost figure that is comparable with the example.
References & data sources
- ABI — Motor insurance claims and premiums, Q2 2026. Average premium of £566.
- GOV.UK — MOT test fees. Maximum car MOT fee of £54.85.
- GOV.UK — Vehicle tax rate tables. Standard VED rates.
- Ofgem — Energy price cap, 1 October to 31 December 2026. Average electricity unit rate of 26.32p/kWh.
- Fuel Finder UK — UK Fuel Price Index. Average petrol and diesel prices on 14 October 2026.
- Transport for London — Congestion Charge. Daily charge, hours and discounts.
Fuel, energy and insurance figures change often. These were checked on 15 October 2026. Use your own bills and quotes for the most accurate personal total.
Prakash
Prakash is the founder and editor of UK Driving Tools. He maintains the site's calculators and guides and checks the rates and rules they use against official UK sources, such as GOV.UK, the DVLA, HMRC and Transport for London, before publishing.
Pages are drafted with the help of AI tools and then checked by the editor. He isn't a lawyer, accountant or UK-qualified adviser, so every page lists its sources and states what its calculator can't tell you. Nothing on this site is legal or financial advice.
Pages on UK Driving Tools are drafted with the help of AI tools. Before publishing, the figures and rules on each page are checked against the official source named on the page, and calculator examples are tested against the working formula. Pages are updated when rates or rules change. Our Editorial Policy explains the full process, including how to report a mistake.
Spotted a mistake or an out-of-date rate? Let us know and we'll check it against the official source.