True Cost of Car Ownership Calculator
Enter your car details to see the full cost of ownership over your planned ownership period. Covers depreciation, fuel or charging, finance interest, insurance, servicing, tyres, and VED road tax.
Frequently asked questions
What is the true cost of owning a car in the UK?
The true cost goes far beyond the purchase price. It includes depreciation (typically the largest cost), fuel or electricity, finance interest, insurance, road tax (VED), servicing, MOT, and tyres. For an average UK car costing around £25,000, total ownership costs over 3 years can reach £15,000-£20,000 on top of the finance payments.
Is depreciation included in the cost?
Yes. Depreciation is usually the single largest cost of car ownership. A mainstream car loses roughly 20% of its value in the first year and 15% in each subsequent year. Premium and luxury vehicles depreciate faster, while EVs are now holding their value better than they did a few years ago.
How does this calculator handle PCP finance?
Enter your monthly PCP payment, the finance term in months, and the balloon/GMFV (Guaranteed Minimum Future Value) as the end balance. The calculator works out the total finance interest by comparing what you pay in total (deposit + payments + balloon) against the purchase price.
Does this include MOT costs?
MOT is not a separate line item, but you can include the typical £40-£55 MOT fee in your annual servicing estimate. New cars are exempt from MOT for the first three years.
How accurate is the VED calculation?
The calculator uses 2026/27 DVLA VED rates including first-year rates by CO2 band and the premium supplement for cars with a list price over £40,000. From April 2025, electric vehicles also pay the standard rate of VED.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.