Car Running Cost Calculator — Australia 2026-27
See the true annual cost of keeping your car on the road.
Calculate the true total annual cost of owning and running any car in Australia. Covers all 8 cost categories: depreciation, fuel, insurance, registration, servicing, tyres, loan interest, and parking. Supports petrol, diesel, and EV comparison.
Estimates based on Australian averages. Depreciation uses ATO diminishing value method (15% default). Enter known costs in Standard+ mode to override estimates.
Select the question that matches where you are right now.
Your result shows the estimated annual total cost of car ownership. The category chart shows where your money goes — this is often surprising. Switch to Standard mode to enter your actual insurance, registration, and servicing amounts for a more accurate total.
Cost per kilometre is the most useful number for comparing vehicles and usage patterns. High-mileage drivers have lower $/km because fixed costs (depreciation, insurance, rego) are spread over more km. Low-mileage drivers pay more per km even if their total annual spend is lower. The cost-per-km curve (Standard mode) shows how your specific number changes at different annual distances.
Fixed costs — depreciation, insurance, registration — stay roughly the same regardless of how far you drive. Variable costs — fuel and tyres — scale directly with km. This means the cheapest cost per km comes from driving more (spreading fixed costs) but with a fuel-efficient vehicle. Conversely, a very expensive car driven infrequently has very high cost per km.
The Simple mode estimates insurance, registration, and servicing. Switch to Standard mode and enter your actual annual amounts to get a precise total. Use your last insurance renewal notice, registration receipt, and average servicing invoices. This turns the estimate into a true total cost of ownership for your specific vehicle and circumstances.
Depreciation is almost always the largest single cost of car ownership — yet it is invisible until you sell. Here is how to minimise it.
A $40,000 car losing 15% per year loses $6,000 in Year 1 — more than most drivers spend on fuel. In Year 5, the car might be worth $18,000 — a total loss of $22,000 over 5 years. That is $4,400/year, just in depreciation. Compare that to approximately $2,200/yr in fuel for average driving. You pay more to own the car than to fuel it.
The steepest depreciation happens in the first 1–3 years — often 35–50% of the purchase price. Buying a 3-year-old car means the original owner absorbed this cliff. You buy at $25,000 what was a $40,000 car, and the remaining depreciation curve is much flatter. Over the next 5 years, you lose $8,000–$12,000 instead of $20,000–$28,000.
Use Advanced mode to change the depreciation rate from the 15% ATO default. Real market depreciation varies dramatically by brand: Toyota HiLux might only lose 10% per year in market value; a European luxury car might lose 20–25%. You can look up your specific model's historical resale values on Redbook.com.au to get a more accurate rate. Reducing the rate from 20% to 12% on a $40,000 car changes the annual depreciation figure from $8,000 to $4,800 — a $3,200 difference that significantly changes your total cost result.
EVs have lower running costs but higher purchase prices. The financial case depends heavily on how far you drive and how long you keep the vehicle.
An EV doing 15,000 km/year at 18kWh/100km, charging at 25c/kWh, costs $675/yr in electricity. A comparable petrol car at 8L/100km and 185c/L costs $2,220/yr. That is a saving of $1,545/yr. At 20,000 km/yr the saving grows to $2,060/yr. Over 7 years: $10,000–$14,000 saved just on fuel — before factoring in servicing.
EVs have no oil changes, no timing belts, no transmission fluid, simpler cooling systems, and regenerative braking that dramatically reduces brake wear. EV servicing typically costs 40–60% less than equivalent petrol cars. Annual EV servicing is often $400–$800 vs $800–$1,500 for petrol. Over 7 years: approximately $3,000–$7,000 saved in servicing.
EVs are currently depreciating faster than most petrol cars in Australia, partly due to rapidly improving technology (newer models become more desirable quickly) and battery uncertainty. A $60,000 EV losing 18% per year in Year 1 loses $10,800 — vs a $35,000 petrol car losing 15% losing $5,250. Select EV mode and adjust the depreciation rate in Advanced mode to see how this affects your total. The EV case improves dramatically if you keep the vehicle for 7–10 years and if battery longevity proves as good as warranted.
Small changes in each cost category compound — here are the highest-impact actions for most Australian drivers.
Look at the category chart — your biggest cost category is where to focus first. For most drivers, that is depreciation. The most powerful move is buying a used car from a brand with strong resale (Toyota, Mazda) rather than buying new. Switching from a new $40,000 car to a 3-year-old version of the same car at $26,000 saves approximately $2,500–$3,500/yr in depreciation alone.
Car insurance premiums vary by 30–100% between providers for identical coverage. Set a reminder 3 weeks before your renewal to compare at least 3 quotes. Budget Direct is not on all comparison sites — always quote directly. Raising your excess from $600 to $1,000 saves $200–$400/yr for most experienced drivers. Switch to the Car Insurance calculator to model your specific situation.
Dealer servicing for standard log book items typically costs 30–50% more than qualified independent mechanics. Log book servicing at an independent does not void manufacturer warranty for most services under Australian Consumer Law. Ask your mechanic to use the same specification oil and parts listed in your log book and keep receipts. This alone can save $300–$700/yr for most cars.
The eight cost categories and how each is estimated
The eight cost categories
| Category | Typical annual cost | Notes |
|---|---|---|
| Depreciation | $3,000–$12,000 | Largest single cost — often ignored by buyers |
| Fuel / electricity | $1,500–$4,000 | Highly variable — depends on km, efficiency, price |
| Insurance (comprehensive) | $1,000–$3,000 | Varies by age, postcode, claims history |
| Registration (incl. CTP) | $700–$1,400 | Varies by state, engine size |
| Servicing & maintenance | $600–$2,000 | Higher for older vehicles and high km |
| Tyres | $400–$1,200 | ~1 set every 40,000–60,000 km; $600–$1,200/set |
| Loan interest | $0–$5,000 | If financed — significant cost often hidden |
| Parking, tolls, other | $0–$5,000 | Can be substantial for CBD workers |
Depreciation methodology
This calculator uses the ATO diminishing value (DV) method: annual depreciation = car value × depreciation rate. At the default 15% rate, a $35,000 car loses $5,250 in Year 1, then $4,463 in Year 2 (applied to the reduced value). In practice, market depreciation follows a steeper curve — losing 20–30% in Year 1 — but the DV method at 15% gives a reasonable multi-year average.
Fuel calculation
Annual fuel cost = (annual km ÷ 100) × fuel efficiency (L/100km) × fuel price ($/L). For EVs: annual electricity cost = (annual km ÷ 100) × consumption (kWh/100km) × electricity rate ($/kWh). The calculator switches the fuel fields to show electricity rates when EV is selected.
Comparing running costs by fuel type — which is cheapest over 5 years?
Fuel / energy cost comparison
| Fuel type | Typical efficiency | Energy cost | Annual fuel cost (15,000km) |
|---|---|---|---|
| Petrol | 8–12 L/100km | 185c/L avg 2024 | $2,220–$3,330/yr |
| Diesel | 5–8 L/100km | 205c/L avg 2024 | $1,538–$2,460/yr |
| Hybrid (petrol) | 4–6 L/100km | 185c/L avg 2024 | $1,110–$1,665/yr |
| EV (home charging) | 15–22 kWh/100km | 25–35c/kWh | $563–$1,155/yr |
| EV (public charging) | 15–22 kWh/100km | 45–65c/kWh | $1,013–$2,145/yr |
5-year total ownership cost comparison
Higher purchase prices for EVs mean higher depreciation — which can offset the fuel savings. However, EVs have significantly lower servicing costs (no oil, fewer brake replacements due to regenerative braking, no timing belt). At high annual mileage (20,000+ km), the fuel savings for EVs become decisive. At low mileage (<10,000 km), the higher depreciation cost of an expensive EV may outweigh fuel savings.
EV running cost considerations
- Home charging: Off-peak overnight rates (15–25c/kWh) give the lowest charging cost
- Public fast charging: 45–65c/kWh is significantly more expensive — comparable to petrol per km
- Road user charge: Most states now charge EVs per km to offset fuel excise — VIC 3.68c/km = $552/yr at 15,000km
- Battery replacement: Most modern EV batteries warrant 8–10 years or 160,000km — factory replacement $10,000–$25,000
Practical strategies to reduce total vehicle ownership cost in Australia
Rank your costs, attack the biggest first
Use this calculator to see which category dominates your costs. For most car owners: depreciation first, then fuel, then insurance. Reducing depreciation has the highest leverage — your choice of vehicle and when you sell it matters more than fuel efficiency for most driving patterns.
Depreciation strategies
- Buy a 2–3 year old vehicle — the first owner absorbs Year 1–2 losses (often $10,000–$20,000)
- Choose high-resale brands: Toyota, Mazda, Subaru outperform European brands by 15–25% over 5 years
- Hold for longer: depreciation per year drops dramatically after Year 5
- Avoid high-mileage or modified vehicles — both reduce resale significantly
Fuel cost strategies
- Use apps like GasBuddy, MotorMouth, or Fuel Map to find cheapest local price
- Fill up on Tuesday/Wednesday (cheapest days in the petrol price cycle)
- Maintain correct tyre pressure: under-inflation increases fuel consumption by 2–3%
- Highway vs city driving: limit city driving where possible — city fuel efficiency is 20–40% worse
Servicing cost strategies
- Log book servicing at independent mechanics (not dealers) saves 20–40% — warranty is not affected for most services
- Drive defensively to extend brake and tyre life
- Tyre rotation every 10,000 km extends tyre life by 20–40%
- Compare tyre prices at mytyres.com.au, tyres4u.com.au before visiting a tyre shop
Industry benchmarks for car running costs from RACQ, NRMA and ATO data
RACQ vehicle running costs (approximate 2024)
The RACQ (Royal Automobile Club of Queensland) publishes annual vehicle running cost guides — among the most comprehensive in Australia. Key findings from their research:
| Vehicle class | Annual cost (15,000km) | Cost per km |
|---|---|---|
| Micro car (e.g. MG3, Toyota Yaris) | ~$9,000–$10,500 | ~$0.60–$0.70 |
| Small car (e.g. Mazda 3, Toyota Corolla) | ~$10,000–$12,000 | ~$0.67–$0.80 |
| Medium car (e.g. Toyota Camry) | ~$12,000–$14,000 | ~$0.80–$0.93 |
| Large SUV (e.g. Toyota LandCruiser) | ~$18,000–$24,000 | ~$1.20–$1.60 |
| Ute (e.g. Toyota HiLux) | ~$14,000–$18,000 | ~$0.93–$1.20 |
| EV (e.g. Tesla Model 3) | ~$11,000–$15,000 | ~$0.73–$1.00 |
ATO cents per kilometre rate
The ATO sets a cents-per-kilometre rate for work-related car use — 91 cents/km for 2026-27. This rate is designed to cover all running costs including depreciation, fuel, insurance, and servicing for an average car. It can only be used for up to 5,000 business km per year (after which the logbook method is required). If your actual costs are lower than 91c/km, the cents-per-km method may over-compensate — and vice versa.
Typical Australian car running costs by vehicle type 2026-27
| Vehicle category | Annual cost @ 15,000 km | Cost per km | Largest cost |
|---|---|---|---|
| Small hatchback (Yaris, Mazda 2) | $8,500–$11,500 | $0.57–$0.77 | Depreciation |
| Medium sedan (Camry, Corolla sedan) | $10,500–$13,500 | $0.70–$0.90 | Depreciation |
| Small SUV (CX-3, Kona) | $11,500–$14,500 | $0.77–$0.97 | Depreciation |
| Medium SUV (CX-5, RAV4) | $13,000–$16,500 | $0.87–$1.10 | Fuel + Depreciation |
| Large SUV (Prado, Sorento) | $16,000–$21,500 | $1.07–$1.43 | Fuel |
| Dual cab ute (Ranger, HiLux) | $15,000–$20,000 | $1.00–$1.33 | Fuel |
| Performance / luxury | $18,000–$30,000+ | $1.20–$2.00+ | Depreciation |
| EV (Tesla Model 3, BYD Atto 3) | $9,500–$13,000 | $0.63–$0.87 | Depreciation |
Source: RACQ Vehicle Running Costs annual survey, supplemented by Australian Bureau of Statistics fuel price data. Costs include depreciation, fuel/charging, insurance, registration, servicing, tyres, and finance interest (assuming average loan-to-purchase ratio).
Vehicle registration costs across Australian states 2026-27
| State | Annual rego (avg sedan) | CTP/MAI | Notes |
|---|---|---|---|
| NSW | $355 | $700–$1,200 | CTP varies by insurer; mandatory motor accident injury cover |
| VIC | $830 | Included | Rego includes TAC charge; highest combined rego/CTP |
| QLD | $760 | Included | Includes CTP and traffic improvement fee |
| WA | $650 | Included | Includes MAI insurance |
| SA | $700 | Included | CTP included in rego |
| TAS | $565 | $285 | Separate CTP component |
| ACT | $770 | Varies | CTP optional through approved insurers |
| NT | $540 | Included | Lowest mainland rego |
EV-specific charges in Victoria and NSW: A state Road User Charge of approximately 2.8c/km applies for EVs and 2.3c/km for plug-in hybrids, paid quarterly on declared odometer. NSW's charge was struck down by the High Court in October 2023 but may return under federal legislation.
For a per-state rego fee estimate — registration fee plus CTP/TAC, with concession and EV discounts applied — use our car registration cost calculator.
How to reduce Australian car fuel costs
FuelCheck / use price apps
FuelCheck (NSW), MyFuel (VIC), Fair Fuel (QLD), and apps like 7-Eleven Fuel Lock, MotorMouth, and PetrolSpy can save 15-25c/L. Over 15,000 km/year in a 7L/100km car, that's $160-$260/year saved.
Refuel mid-week
RACQ and NRMA both report a recurring weekly cycle in Australian fuel prices: lowest typically Tuesday-Wednesday, highest Friday-Saturday. The amplitude is often 20c/L between low and high.
Don't use premium unless required
91 RON regular is suitable for most Australian vehicles. 95 RON premium costs ~15c/L more but only delivers fuel economy benefits in vehicles specifically tuned for it. Check your owner's manual — most non-European cars are fine on 91.
Driving style
Aggressive acceleration and high-speed cruising can increase fuel use by 20-30%. Driving at 100 km/h vs 110 km/h uses approximately 15% less fuel due to the cube-of-velocity drag relationship. Cruise control on highways reduces variability.
Tyre pressure
Under-inflated tyres add 2-5% to fuel use. Check pressures monthly against the placard inside the driver's door. NRMA finds 60%+ of Australian cars run under-inflated.
Australian car servicing costs and warranty considerations
Capped-price servicing
Most Australian manufacturers (Toyota, Mazda, Hyundai, Kia, Mitsubishi, Subaru) publish capped-price service costs for the first 3-7 years. Typical capped service prices in 2026-27 range from $190 (Yaris) to $450 (large SUV) per service, with 12-month or 15,000 km intervals.
European brands cost more
BMW, Mercedes, Audi, VW, Volvo capped-price services run $400-$900 per visit. Tyre, brake, and battery replacement costs are 20-50% higher due to parts pricing. Long-term ownership of European cars typically costs 30-50% more than equivalent Asian brands.
EV servicing is cheaper
Tesla, BYD, Polestar service costs are 40-60% lower than equivalent petrol cars — no oil changes, fewer fluid changes, less mechanical wear. Most EVs need only check-ups every 24,000 km or 24 months.
Manufacturer warranty
Standard warranties in Australia 2026-27: Toyota and Mazda 5 years/unlimited km, Mitsubishi 10 years/200,000 km (conditional), Hyundai/Kia 7 years/unlimited km, Tesla 4 years/80,000 km (8 years/192,000 km on battery), European brands typically 3-5 years. Independent servicing within the manufacturer's published intervals usually maintains warranty.
Estimating total cost of ownership over 5 years in Australia
The big picture
Over 5 years owning a $35,000 new mid-size sedan at 15,000 km/year, total ownership cost is typically $55,000-$65,000. That's almost double the purchase price — and the depreciation alone is $18,000-$22,000.
Five-year cost stack
| Cost category | Year 1 | Years 2-5 (each) | 5-year total |
|---|---|---|---|
| Depreciation | $7,500 | $3,000-$4,000 | $19,500-$23,500 |
| Fuel (15,000 km @ 7L/100km @ $1.80) | $1,890 | $1,890 | $9,450 |
| Insurance | $1,400 | $1,250 | $6,400 |
| Registration & CTP | $830 | $830 | $4,150 |
| Servicing | $350 | $400 | $1,950 |
| Tyres (set every 60,000 km) | $0 | $300 avg | $1,200 |
| Finance interest (if borrowed) | $1,800 | $1,200 avg | $6,600 |
| Total 5-year cost | $13,770 | $8,870-$9,870 avg | ~$60,250 |
How to cut total cost by 30-40%
Buy a 2-3 year old used vehicle (avoid first-year depreciation hit), choose strong-resale brands (Toyota, Mazda), keep it 10+ years to amortise depreciation, pay cash to eliminate finance interest, switch to comprehensive-only insurance after the car drops below $15k value.
❓ Frequently asked Frequently asked questions about Australian car running costs
What is the average annual cost to run a car in Australia?
The average cost to run a car in Australia for 15,000 km/year is approximately $10,000–$14,000 per year, or $0.67–$0.93 per km, depending on the vehicle. This includes depreciation (typically the largest single cost), fuel, insurance, registration, servicing, and tyres. RACQ research consistently finds that depreciation accounts for 30–40% of total ownership cost — more than fuel and servicing combined for most drivers.
Is an EV cheaper to run than a petrol car in Australia?
For running costs (fuel + servicing), EVs are significantly cheaper — typically $1,500–$3,000/yr less in fuel, and lower servicing costs due to fewer mechanical components. However, the higher purchase price means more depreciation, which can partially or fully offset running savings. At higher annual mileage (20,000+ km) the running cost savings become decisive. At lower mileage or for drivers who keep cars for a shorter period, the depreciation difference may outweigh the running cost savings. EV road user charges (now in most states) add back approximately 3–4c/km.
Why is depreciation the largest car cost for most people?
A new $40,000 car typically loses $7,000–$10,000 of market value in the first year — more than most people spend on fuel and servicing combined. Even in Years 2–5, annual depreciation is $3,000–$6,000. Because depreciation is not a cash payment (it comes out when you sell the car), many car owners ignore it. But when you sell for $20,000 less than you paid, that difference is real money. Choosing a brand with strong resale (Toyota, Mazda) and buying a 2–3 year old vehicle are the most powerful strategies to reduce this cost.
What does it cost to run a car per kilometre in Australia?
For a typical mid-size car driven 15,000 km/year in Australia, total cost per kilometre is approximately $0.70–$0.95. At lower mileage (8,000 km/yr), the fixed costs spread less and $/km rises to $1.20–$1.75. At higher mileage (25,000 km/yr), it drops to approximately $0.50–$0.65/km. The ATO sets a standard 91 cents/km rate for 2026-27 as a benchmark for work use claims. The cost-per-km curve chart in Standard mode shows how your specific costs change at different annual distances.
Can I claim car running costs on tax in Australia?
For work-related travel (not commuting), yes. Two methods: cents-per-km (91c/km in 2026-27, max 5,000 km, no logbook needed) or logbook method (actual costs × business-use %, requires 12-week logbook every 5 years). Logbook always wins above 30% work use. The income tax calculator models the marginal-rate benefit.
Are EVs cheaper to insure in Australia?
Generally no — EVs cost slightly more to insure than equivalent petrol cars (typically 10-25% higher premiums) because of higher repair costs, specialist parts, and limited panel-beater networks. As EV market share grows and repair capacity expands, this gap is narrowing.
How can I reduce car running costs?
Top 5 actions ranked by impact: (1) Buy a 2-3 year old car instead of new (cuts depreciation 30-40%), (2) Keep the car 10+ years (spreads depreciation), (3) Choose Asian brands over European (parts cost 20-50% less), (4) Switch insurer annually (premiums often increase 10%+ at renewal), (5) Use fuel-price apps and refuel on cheap days (saves $200/year).
What's better: comprehensive or third-party insurance?
For cars worth over ~$8,000, comprehensive is almost always better — the cost difference vs third-party is small ($200-$400/year) but you're protected against your own car's damage. Below ~$5,000 vehicle value, third-party (with fire and theft) is often sufficient. Recalibrate as the car ages.
Do I need to budget for tyres separately?
Yes — most cars need a new set of tyres every 50,000-80,000 km, costing $600-$1,500 per set. That's $0.01-$0.03/km. For high-mileage drivers (25,000+ km/year), tyres become a significant annual cost. Premium brands last longer but cost more upfront.
How does finance interest affect running costs?
A $35,000 car financed over 5 years at 8% adds approximately $7,600 of interest — almost a full year of all other running costs combined. Paying cash, using offset funds, or making extra repayments to clear finance early are among the highest-return decisions for total ownership cost.
What is the ATO 91c/km rate for in 2026-27?
The ATO sets a standard cents-per-kilometre rate (91c for the 2026-27 year) for work-related car expense deductions when not using the logbook method. It's intended to broadly cover all running costs (fuel, insurance, rego, depreciation, servicing) for a typical vehicle. Limited to 5,000 work km per year per car.
Are running costs included in a novated lease?
In a fully maintained novated lease, yes — fuel, registration, insurance, servicing, tyres, and roadside assistance are all bundled and paid pre-tax. This is one of the main attractions of novated leasing for high-income earners. See our novated lease calculator for tax savings.
Where these figures come from
Every threshold and tax rate on this page is taken from the Australian Taxation Office (ATO) — the source of record for Australian income tax, Medicare levy, HECS/HELP repayment, and capital gains tax.
- Individual income tax rates (2026–27, Stage 3) — ATO — Individual income tax rates.
- Medicare levy & surcharge — ATO — Medicare levy.
- HECS/HELP repayment thresholds — ATO — Study and training support loans.
- Capital gains tax rules — ATO — Capital gains tax.
- GST rules — ATO — GST.
- Tax offsets & LITO/LMITO — ATO — Tax offsets.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.