Car Running Cost Calculator

The total cost of running a car in the UK in 2025 is typically £3,500-£5,000 per year for an average family hatchback driven 7,400 miles annually — but the range across the fleet is huge. A 10-year-old supermini insured fully comprehensive by a 40-year-old in a low-risk postcode can cost under £2,000/year all in; a new 400 bhp performance SUV driven 20,000 miles a year by a 25-year-old in central London can exceed £15,000/year before depreciation. This calculator builds up the total from six headline components: fuel/electricity, insurance, road tax (VED), MOT and servicing, depreciation, and miscellaneous. Fuel/electricity is calculated from annual mileage × pence per mile (see the Fuel Cost Calculator and Electric Car Savings Calculator). Insurance for fully comprehensive cover averaged £622/year in Q4 2024 across the UK (ABI data) but varies dramatically: under-25s often £1,200-£3,000, drivers over 50 with clean records often £400-£600, urban postcodes (London, Manchester, Birmingham) 50-100% above rural. Insurance Premium Tax at 12% is included in every quote. Road tax is £195/year for most post-April 2017 cars, plus £425 Expensive Car Supplement for years 2-6 if list price exceeded £40k. MOT is £54.85 capped (most UK garages charge less). Servicing varies by car type but budget £200-£400/year for an interim plus full alternation, or £350-£700/year for premium brands and German marques. Tyres last 25,000-40,000 miles and cost £80-£200 each — budget about £150-£250/year on average. Depreciation is normally the largest cost on new cars (often £2,000-£5,000/year in the first 3 years) but very low on 8-year-old cars (£300-£800/year). Use 15-25% in year 1, 10-15% in year 2-3, then 5-8% thereafter as rough guides. London adds ULEZ at £12.50/day for non-compliant vehicles (anything pre-Euro 4 petrol or pre-Euro 6 diesel — most cars built since 2015 are compliant). The Congestion Charge is £15/day for entering central London Mon-Fri 7am-6pm and weekends 12pm-6pm. Birmingham, Manchester (no longer active), Sheffield, Bristol, Bath and Newcastle have or had Clean Air Zones with their own charges. The calculator handles base UK running cost but does not auto-detect ULEZ/CAZ liability — add an estimate manually if you regularly enter charging zones. For specific cost components use the Fuel Cost, Road Tax and Car Finance calculators.