Why use this calculator
Most people dramatically underestimate the true cost of car ownership by only thinking about fuel. When you include depreciation, insurance, registration, CTP, servicing, and tyres, the real cost is often 2-3× the fuel cost alone. This calculator gives you the full picture.
How to use it
Enter your vehicle value, how much you drive, fuel efficiency, and fixed costs (insurance, registration, servicing). The calculator estimates annual depreciation and tyres, and shows your total cost per year, per month, and per kilometre driven.
The formula
Annual Fuel = (km ÷ 100) × efficiency × price. Depreciation = Vehicle Value × annual rate. Total = Fuel + Insurance + Registration + Servicing + Depreciation + Tyres.
Worked examples
$35k car, 15,000 km/year, 8.5L/100km at $2.00/L, standard costs
~$2,550 fuel, ~$5,250 depreciation, ~$11,300 total/year — $944/month
$55k car, 25,000 km/year, commuter use
~$16,000–$18,000 per year total cost of ownership
When people use it
- Comparing cars before purchase
- Deciding between buying and leasing
- Budgeting for a second vehicle
- Evaluating EV vs petrol economics
Tips
- Depreciation is often the largest single cost, especially in the first 1-3 years
- New cars typically depreciate 15-25% in the first year, then 10-15% annually
- Fuel efficiency improvements have the biggest impact for high-km drivers
- Budget ~$400-600/year for tyres based on typical wear rates
- CTP (Compulsory Third Party) is usually included in registration in most states
Questions people ask
- What is the average cost per kilometre for a car in Australia?
- The Australian Automobile Association estimates the average total cost of car ownership at around $0.70–$1.20 per kilometre depending on vehicle type, including all fixed and variable costs.
- How do I reduce car running costs?
- Drive a fuel-efficient vehicle, keep up with servicing to avoid major repairs, shop around for insurance annually, consider a higher excess to reduce premiums, and reduce km driven where possible.
- Should I include loan repayments in running costs?
- This calculator focuses on true running costs (depreciation, fuel, insurance, etc.). If you have a car loan, the interest component is an additional cost — the principal repayment is equity building, not a cost.