How it is calculated
Annual cost = fuel + insurance + maintenance + tyres + tax + parking + loan + depreciation Cost per km = annual cost ÷ km per yearDepreciation is the biggest hidden cost: a new car loses about 15–20% in year one, then about 10–15% a year.
Worked example
A 180,000 car driven 15,000 km a year at 6.5 L/100 km and 13 per litre, with 4,000 insurance, 3,000 maintenance, 700 tax and 12% depreciation: about 41,975 a year — 3,498 a month, 2.80 per km.
Frequently asked questions
Car or public transport?
Compare this cost per km with taxis and public transport for your real usage.
How do I cut depreciation?
Buy a 2–3-year-old car and choose models that hold their value.
Should I include the loan?
Enter just the interest for the economic cost, or the full payment to see your cash outflow.