Vehicle Cost Comparison Calculator
Compare the true annual running costs of different vehicles including fuel, insurance, maintenance, road tax, and depreciation to find the most cost-effective option.
Last updated: March 2026
Car A Annual Fuel
£$1,648
Car B Annual Fuel
£$1,198
Annual Fuel Savings (B vs A)
£$449
5-Year Total Cost A
£$28,240
5-Year Total Cost B
£$30,992
How You Compare
Your annual fuel cost is in the bottom 53% of UK motorists.
Industry typical: £800-£2,500
Source: RAC Motoring Data 2025
💡 What This Means
- 📊 Car B saves £449/year on fuel. The savings are modest — the purchase price difference may be more important.
- ✅ Over 5 years, Car A is cheaper overall at £28240 vs £30992.
- 💡 Don't forget depreciation — a new car loses 15-35% of its value in year one. Total cost of ownership includes fuel, insurance, maintenance, and depreciation.
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What is Vehicle Running Cost?
Vehicle running cost is the total annual expense of owning and operating a vehicle, encompassing fuel, insurance, maintenance, road tax, MOT, and depreciation. Depreciation is the largest cost for new cars, while fuel dominates for older vehicles. Plan your finance with the Car Loan Calculator and for business fleets, see the Fleet Cost Calculator.
The Formula
Annual Running Cost = Annual Fuel + Insurance + Maintenance + Road Tax + MOT + Depreciation
Worked Example
A 3-year-old family car covering 10,000 miles/year at 40mpg, fuel at £1.45/litre.
- Fuel = (10,000 ÷ 40) × 4.546 × £1.45 = £1,648
- Insurance = £600
- Maintenance & servicing = £400
- Road tax = £165
- MOT = £50
- Depreciation = £2,000
- Total = £1,648 + £600 + £400 + £165 + £50 + £2,000 = £4,863
📌 Total annual running cost: £4,863 — that's £405/month or 48.6p per mile. Depreciation accounts for 41% of the total cost.
Why This Matters
True cost of ownership
Most people only consider fuel and insurance. Depreciation, maintenance, and tax add 50-70% more. Understanding the full cost helps you decide between new vs used, petrol vs electric, and ownership vs leasing.
Cost per mile decisions
Knowing your cost per mile helps evaluate whether driving, train, or cycling is cheapest for regular journeys. At 49p/mile, a 20-mile commute costs £19.60/day — often more than a rail season ticket.
Common Mistakes
❌ Ignoring depreciation
A new £25,000 car loses £4,000-8,000 in year one alone. This "invisible" cost doesn't appear on any bill but is the largest expense of car ownership. Buying 2-3 year old cars avoids the steepest depreciation.
❌ Underestimating maintenance on older cars
While depreciation is lower on older cars, maintenance costs rise sharply after 5-7 years. Budget £800-1,500/year for maintenance on cars over 7 years old, compared to £200-400 for newer vehicles.
Industry Benchmarks
| Category | Good | Average | Poor |
|---|---|---|---|
| Annual running cost | Below £3,000 | £3,000-5,000 | Above £6,000 |
| Cost per mile | Below 30p | 30-50p | Above 60p |
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