Why depreciation and finance aren't included
This calculator deliberately sticks to the running costs you pay as you go — fuel, insurance, servicing, tax and consumables — rather than depreciation or finance payments. Depreciation and finance costs depend heavily on how you bought the car (cash, PCP, HP, lease) and say more about that decision than about the cost of actually driving it. If you want a full cost-of-ownership figure including depreciation, you'd add your car's expected annual value loss on top of the number this tool gives you.
Typical annual costs for common UK car types
| Cost | Small hatchback | Family saloon/estate | SUV |
|---|---|---|---|
| Insurance | £300–500 | £350–600 | £450–750 |
| Servicing & MOT | £200–350 | £250–400 | £300–500 |
| Road tax (VED) | £0–190 | £0–190 | £190–600+ |
These are broad UK ranges, not quotes — insurance in particular varies enormously by driver age, location and claims history, so it's worth using your own renewal quote rather than a rough average where you have it.
Frequently asked questions
Should I include the cost of buying the car?
Not in this tool — it's designed to show your ongoing running cost per mile, not the cost of ownership including purchase price or depreciation.
What counts as "other annual costs"?
Anything regular that doesn't fit fuel, insurance or servicing — road tax, tyre replacement averaged over its lifespan, breakdown cover, or a parking permit, for example.
How does this help with a "should I keep driving to work" decision?
Multiply your cost per mile by your commute distance and working days per year to see the real annual cost of a specific commute, which is often a more useful number than a headline "cost per mile" figure on its own.