UK Car Ownership Calculator

Today is Saturday 10th January 2026

The True Cost of Car Ownership: Beyond the Monthly Payment

For many UK motorists, the "sticker price" or the monthly finance payment is just the tip of the iceberg. To avoid financial surprises, you need to understand the Total Cost of Ownership (TCO).

Our Car Ownership Calculator helps you look past the showroom price. By factoring in insurance, road tax, fuel, and maintenance, you can see exactly how much of your monthly take-home pay is actually going toward your vehicle. This "true" figure is the only way to ensure your next car fits your lifestyle without compromising your other financial goals.

Breaking Down Your Running Costs

In the UK, running costs are often split into Fixed Costs (what you pay regardless of how much you drive) and Running Costs (what you pay per mile):

UK Averages: What Should You Expect?

While every car is different, here are some typical UK benchmarks to consider when filling out the calculator:

• Insurance: The average UK premium is rising. Factors like your age and "Insurance Group" (1-50) can change this by hundreds of pounds.
• Road Tax (VED): Rates changed significantly for cars registered after April 2017. Many owners are surprised by the £180+ flat rate for petrol/diesel cars.
• The £40k Rule: Remember that cars with a list price over £40,000 pay an additional "Premium" tax for the first five years - often over £300 extra per year.
• Depreciation: While not a monthly "cash" cost, most cars lose 15-20% of their value each year. This is the biggest hidden cost of all.

Budgeting for the "True" Total

Financial experts often recommend the 15-20% Rule. This suggests that your Total car costs (everything in this calculator) should not exceed 20% of your monthly take-home pay. If you spend 15% on the finance payment alone, you may find that insurance and fuel push you into a "danger zone" where you are car poor - having a great vehicle but no money left for anything else.