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 in 2025 ranges from 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 significantly cheaper at around 15-25p per mile. Diesel cars typically cost 35-45p per mile.

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 in 2025 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) for most petrol and diesel cars registered after April 2017 is £190 per year after the first year. Hybrid vehicles pay £170 per year. Pure electric vehicles registered before April 2025 pay £0, but from April 2025, new electric vehicles will start paying the standard rate. Cars with a list price over £40,000 pay an additional £410 per year for the first five years.

Electric cars are significantly cheaper to run than petrol or diesel equivalents. Electricity costs approximately 3-5p per mile compared to 10-15p per mile for petrol. Electric vehicles also have no road tax (until 2025), lower servicing costs due to fewer moving parts, and no MOT emissions test requirement. However, the higher purchase price means total cost of ownership depends on annual mileage and how long you keep the car.

The maximum MOT test fee is set by the DVSA at £54.85 for cars in 2025, 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.