What your car really costs

Why most people underestimate their car

Ask someone what their car costs and they'll tell you the fuel bill. But a car also costs insurance every year, servicing, tyres, parking, tolls, washes, the occasional repair, an EMI if you financed it — and it loses value every month whether you drive it or not. Add it all up and the real number is often double the fuel bill.

The full list of car running costs

• --Fuel or charging — kilometres per month ÷ mileage × fuel price. The calculator above does this for you.
• --Insurance — a yearly premium; divide by 12 to see its monthly weight.
• --Servicing — scheduled services plus consumables like oil, filters, wipers and batteries.
• --Tyres — a set every few years; spread the cost.
• --Parking, tolls and FASTag recharges — small, frequent and easy to forget.
• --Washing and cleaning.
• --Repairs — the unplanned line. Budget a little every month.
• --EMI — if the car is financed.
• --Depreciation — not a payment, but real: your car is worth less every year you own it.

Cost per km: the number that helps you decide

Divide the all-in monthly cost by the kilometres you drive. That cost per km makes everyday decisions easy: is the car cheaper than a cab for this trip? Is it worth keeping a second car you drive 300 km a month? For short city trips, the answer is often surprising.

Track it for three months

• --Log every car expense under a Car category — fuel, parking, tolls, service — the moment you pay.
• --Note the odometer on fuel stops once a month to know your real mileage.
• --Spread the yearly costs — insurance and service — into a monthly sinking fund, so renewal month isn't a shock.
• --Shared car? Split fuel by use and fixed costs evenly — or agree a per-km rate — and log it in a shared ledger.

Frequently asked questions