Work out what your car really costs for every mile you drive — including the costs most people forget.
Fuel is only the visible part. Insurance, maintenance, road tax, tyres, repairs and depreciation can quietly double the true cost of every mile.
Good for a journey estimate, but it misses the cost of owning the car.
Adds the hidden ownership costs that change whether a car is actually good value.
Use this before buying a car, judging a commute or comparing petrol, diesel, hybrid and electric.
Use the calculator to build your yearly car cost. Then divide the yearly total by your annual mileage to get your realistic cost per mile.
Purchase & depreciation
Running costs
Other costs (optional)
For fuel-only cost per mile, use the Fuel Cost Per Mile Calculator instead. This page covers the wider cost of owning and using the car.
Quick answer: the formula is simple, but the inputs matter
To work out your real car cost per mile, divide your total yearly car cost by the number of miles you drive per year.
The calculation is easy. The mistake is only using fuel and forgetting the costs that really change the answer: insurance, road tax, servicing, MOT, tyres, repairs and depreciation.
That is why RealCost helps you build the full yearly cost first, then turn it into a realistic cost-per-mile figure.
Is your car cheap or expensive per mile?
These are practical guide bands, not official figures. Your own cost depends on your car, mileage and personal costs.
Very lean. Usually needs a cheap car, low insurance, good fuel economy and enough mileage to spread fixed costs.
Common zone. Many normal used petrol, diesel and hybrid cars sit here once fuel, insurance and maintenance are included.
Warning zone. Often caused by high insurance, low mileage, expensive repairs, heavy depreciation or a car that is too costly for the job.
What affects your full car cost per mile?
Fuel matters, but it is only one part of the real cost.
Changes with mileage, MPG or miles-per-kWh and current fuel/electricity prices. Petrol has averaged around £1.60/litre and diesel around £1.80/litre through mid-2026 — EVs charged at home typically cost far less per mile. See our electric vs petrol comparison for the numbers.
A car that saves £20 a month in fuel can still be a bad choice if insurance is £60 a month higher. A large fixed cost that hits low-mileage drivers hardest.
Servicing, MOT work, brakes, tyres, suspension and unexpected faults all affect the real cost — bigger wheels and performance tyres make routine wear more expensive.
Losing £1,500 of value in a year is the same as spending £125 a month, even if no bill arrives. Often the single biggest hidden cost.
Annual costs still apply even if the car sits on the drive most of the week — they do not shrink just because you drive less.
If you drive very few miles, fixed costs like insurance and tax are spread over fewer miles, pushing the cost per mile up — sometimes counterintuitively higher than a high-mileage driver’s.
Fuel cost per mile vs real car cost per mile
This is the difference between a quick journey estimate and a proper ownership decision.
This only measures petrol, diesel or electricity used to drive each mile.
Useful for: quick trips, route costs and fuel comparisons.
This includes the wider cost of owning, maintaining and losing value on the car.
Useful for: buying decisions, commuting, affordability and comparing cars properly.
Example: how a “cheap” car becomes expensive
This example shows why fuel economy alone is not enough.
| Cost | Yearly amount | What it means |
|---|---|---|
| Fuel | £1,600 | The cost most people focus on first. |
| Insurance | £900 | Can change massively by car, driver and postcode. |
| Road tax, servicing, MOT, tyres and repairs | £1,100 | The running costs that often get underestimated. |
| Depreciation | £1,200 | Value lost over time, even if it does not feel like a monthly bill. |
| Total yearly cost | £4,800 | At 8,000 miles per year, this is about 60p per mile. |
Same £4,800 car, different mileage: why the number moves so much
The car above does not have to change at all for its cost per mile to swing wildly — only the mileage does.
£4,800/year ÷ 6,000 miles
Cost per mile: £0.80. Fixed costs spread thin.
£4,800/year ÷ 8,000 miles
Cost per mile: 60p. The baseline example above.
£4,800/year ÷ 12,000 miles
Cost per mile: 40p. Same car, same fixed costs, just driven more.
Important: this is exactly why two people with the identical car can have a completely different “true” cost per mile — and why a car is never cheap or expensive in isolation from how much you actually drive it.
The “wow” test: what changes the number most?
Your fixed costs spread out, so cost per mile can fall even if total yearly spend rises.
A car with slightly worse fuel economy can still be cheaper overall if it holds value better.
A low purchase price can be wiped out if the car sits in a higher insurance risk zone.
Large wheels and premium tyre sizes can turn normal maintenance into a major cost.
How to reduce your car cost per mile
Before you decide a car is cheap, check these
What to calculate next
Use these tools to find what is pushing your cost per mile up.
Estimate one of the biggest ownership costs before buying or renewing.
See how fuel/charging cost per mile compares between an EV and a petrol car.
Step back and weigh up whether a car is the right choice at all.
RealCost decision
A car is not cheap just because the fuel cost looks low. The better question is whether the full cost per mile makes sense for how you actually use the car.
If your result looks high, check insurance, depreciation, mileage and maintenance first. Those are often the costs that make the biggest difference.
RealCost note
This page gives a budgeting estimate, not a guaranteed ownership cost. Real costs depend on your car, mileage, insurance quote, repair history, fuel price, charging price, driving style and how long you keep the vehicle. Fuel and electricity prices referenced above reflect typical UK averages as of mid-2026 and will drift over time — always check current prices for a precise figure.
FAQs
Common questions about car cost per mile in the UK.
It depends on the car and mileage. As a rough guide, under 35p per mile is lean, 35p–60p is common for many normal cars, and 60p+ deserves a closer look at insurance, depreciation, maintenance or low mileage.
No. Fuel cost per mile only measures petrol, diesel or electricity. Real car cost per mile also includes insurance, tax, maintenance, tyres, repairs, parking and depreciation.
Usually low annual mileage, expensive insurance, heavy depreciation, large repair bills, or poor fuel/energy economy — often more than one of these at once.
Many car costs stay similar whether you drive 3,000 miles or 10,000 miles. If you drive fewer miles, those fixed costs are spread over fewer journeys, so the cost per mile rises.
Yes. Depreciation is not a monthly bill, but it is still real money lost while you own the car. Ignoring it can make expensive cars look cheaper than they are.
Fuel or charging, insurance, road tax, servicing, MOT, tyres, repairs, parking, breakdown cover and depreciation.
Frequently asked questions
As a practical guide band (not an official figure): under 35p/mile is cheap, 35p–60p/mile is mid-range, and 60p to £1+/mile is expensive. Your own number depends on your car, mileage and how you drive.
Total annual car cost ÷ annual mileage = real cost per mile. That total should include insurance, maintenance, road tax, tyres, repairs and depreciation — not just what you spend on fuel.
No. Fuel-only cost per mile measures just the petrol, diesel or electricity used to drive each mile. Real cost per mile adds ownership costs like depreciation, insurance and maintenance on top, and is usually far higher.
Usually, yes, for running costs. With petrol around £1.60/litre and diesel around £1.80/litre through mid-2026, EVs charged at home typically cost far less per mile — though the full picture also depends on where you charge.