The true cost
Total Cost of Car Ownership Calculator
Work out the true total cost of owning a car — finance plus fuel, insurance, tax and servicing.
All-in monthly
£636.80
Total over 4 years
£32,566
The real cost of running this car
- Finance (monthly)
- £401.80
- Running costs (monthly)
- £235.00
The sticker price is only the start. Fuel or charging, insurance, tax and servicing often add as much again over the life of the deal.
How we work this out
Total cost = finance (deposit + payments + any balloon, spread over the term) + running costs (insurance + fuel/charging + road tax + servicing + tyres). We show it as a monthly figure and an annual figure so you can budget either way.
Running costs are estimates — your insurance, mileage and servicing will vary. Use real quotes where you have them.
Full method: how we calculate.
The total cost of owning a car is the finance plus every running cost — fuel or charging, insurance, road tax, servicing and tyres. This calculator adds them all up to show the real monthly and yearly figure, not just the finance payment.
The headline finance monthly is only part of what a car costs you. Enter the finance and the running costs above to see the true total you spend each month and each year.
What is the true cost of owning a car?
The true cost of owning a car is the finance plus all the running costs added together. The finance is the obvious bit; insurance, fuel, tax, servicing and tyres are what people forget.
A car that looks affordable on the finance monthly can be a stretch once you add it all up. To get the finance part right first, work it out on the PCP, HP or loan calculator, then bring the figure here.
What goes into the total cost?
Five running costs sit on top of your finance: insurance, fuel or charging, road tax, servicing and tyres. Together they often rival the finance payment itself.
- Insurance: typically £600–£1,000 a year, more for newer or higher-powered cars.
- Fuel or charging: roughly £1,200–£1,800 a year for an average mileage.
- Road tax (VED): from around £190 a year for most petrol and diesel cars.
- Servicing, MOT and tyres: budget around £400–£600 a year on average.
A worked example of the real monthly cost
On a typical financed car, running costs can add another £220 a month on top of the finance. That turns a £493 finance monthly into a real cost closer to £717.
Worked example
Finance cost vs running cost compared
The finance is usually the biggest single cost, but running costs are not far behind. Seeing them side by side stops the budget surprise.
Check the running cost against your budget first with the affordability calculator, so the real monthly is no shock.
| Cost | Per year | Per month |
|---|---|---|
| Finance | ≈ £5,924 | ≈ £493 |
| Insurance | ≈ £700 | ≈ £58 |
| Fuel | ≈ £1,500 | ≈ £125 |
| Tax & servicing | ≈ £590 | ≈ £49 |
| Total | ≈ £8,714 | ≈ £726 |
How to cut the total cost
You can cut the total cost on both sides — a cheaper finance deal and lower running costs. Small savings on each add up over a few years.
On the finance side, a bigger deposit and a lower APR cut the cost — compare deals fairly on the APR calculator. On the running side, an electric car can lower fuel and tax, though insurance is sometimes higher. Always compare the total, not the monthly.
Was your finance more expensive than it should have been?
If your car finance was mis-sold between 2007–2024 through hidden commission, you overpaid on the biggest cost of all. You may be owed redress.
The FCA's redress scheme follows the Supreme Court ruling of 1 August 2025. Estimate your position with the compensation estimator — an estimate, not a promise, and free to claim yourself.
Frequently asked
What is the true cost of owning a car?
What are the running costs of a car?
How much does it cost to run a car per month?
How can I lower the total cost of owning a car?
Does an electric car cost less to run?
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