Cost Per km Calculator — Australia 2026-27
Track the real cost of every kilometre you drive.
Calculate your true cost per kilometre for any vehicle in Australia. Compare against the ATO 91c/km rate and find your best tax deduction method.
Estimates only. 2026-27 ATO rates.
Select the question that matches your situation.
Your cost per km is the total annual running cost divided by kilometres driven. It puts all fixed and variable costs on a per-distance basis so you can compare vehicles, assess work deductions, and understand the true cost of each trip.
Insurance, rego, and depreciation are fixed — they cost the same whether you drive 5,000 km or 30,000 km. Fuel and tyres are variable. High-km drivers have lower cost per km because fixed costs are spread further.
The ATO rate is set to approximately cover the average car’s running costs. If your actual cost is below 91c/km, the ATO method is more generous. If above, the logbook method may give a larger deduction for work use.
For new vehicles, depreciation is often the single largest cost component — easily $3,000–$8,000/yr for a typical new car. Excluding it dramatically understates the true cost per km.
The ATO allows two methods for claiming work-related car expenses. The right choice depends on your business km percentage and total annual costs.
91c/km in 2026-27 for up to 5,000 work km. Maximum claim $4,550. No logbook needed — just a diary or records showing work trips. Simple but capped.
Claim the business-use percentage of all actual vehicle costs. Must keep a 12-week logbook every 5 years. Better if business % is high and/or km exceed 5,000.
Switch to Standard mode, enter your business km percentage, and the calculator shows which method gives a larger deduction for your situation. Generally: logbook wins above ~30% business use at higher total costs.
EVs have dramatically lower fuel costs but higher purchase prices. The per-km comparison depends heavily on electricity rates, charging habits, and how long you keep the vehicle.
At 18 kWh/100km and 25c/kWh, electricity costs approximately 4.5c/km. Petrol at 10L/100km and $2.20/L costs approximately 22c/km. The fuel saving is roughly $2,600/yr at 15,000 km.
Insurance for EVs is typically 10–20% higher than equivalent petrol cars (higher repair costs). Rego is similar or lower in states with EV concessions. Servicing is approximately 40–50% cheaper (no oil changes, fewer brake jobs).
EVs under the Luxury Car Tax threshold used for work are eligible for FBT exemption when salary packaged through an employer. This can save $5,000–$10,000/yr in after-tax cost for eligible employees.
The biggest levers on cost per km are fuel efficiency, insurance shopping, and servicing choices.
Each 1L/100km improvement at $2.20/L saves $330/yr at 15,000 km. Tyre inflation, smooth driving, and avoiding roof racks all improve efficiency 5–15%.
Use a comparison site annually — premiums vary 30–60% between insurers for identical coverage. Increasing your excess, adding a named-driver restriction, or installing a dashcam can reduce premiums significantly.
Fixed costs (insurance, rego) cost the same regardless of km. Reducing unnecessary driving directly saves on fuel and tyres without changing fixed costs.
Methodology — all cost components and what to include
What to include
True cost per km includes all fixed and variable costs: fuel, insurance, registration, compulsory third party, tyres, servicing and repairs, parking and tolls, and depreciation. Omitting depreciation (the loss in vehicle value) significantly understates the real cost — for a typical new car depreciating $4,000/yr at 15,000 km, that alone adds 27c/km.
Typical cost ranges (2026-27)
| Vehicle type | Est. cost per km |
|---|---|
| Small petrol (e.g. Corolla) | 45–55c/km |
| Mid-size petrol (e.g. Camry) | 55–70c/km |
| SUV petrol (e.g. RAV4) | 60–80c/km |
| Electric vehicle (e.g. Tesla M3) | 30–45c/km |
| Ute / 4WD (e.g. HiLux) | 70–100c/km |
ATO 91c/km rate — how to use it and when the logbook method is better
Cents per kilometre method
The ATO rate for 2026-27 is 91 cents per kilometre for work-related car use. The maximum claimable distance is 5,000 km per year, giving a maximum deduction of $4,550. No logbook is required, but you must be able to demonstrate that the km were work-related (e.g. a diary of trips).
Logbook method
The logbook method requires you to keep a 12-week logbook recording all trips (business and private) to establish your business use percentage. Once established, that percentage applies for 5 years (if your pattern doesn’t change significantly). You then claim the business % of all actual vehicle costs. This method is better when: business use exceeds ~30% of total km, total annual costs are high (expensive vehicle), or km exceed 5,000.
Rate history
| Year | ATO rate |
|---|---|
| 2026-27 | 91c/km |
| 2023-24 | 85c/km |
| 2022-23 | 78c/km |
| 2021-22 | 72c/km |
When does an EV become cheaper to run than a petrol car?
Fuel cost per km
An EV using 18 kWh/100km at 25c/kWh costs approximately 4.5c/km in fuel. A petrol car using 8L/100km at $2.10/L costs approximately 16.8c/km. The annual fuel saving at 15,000 km is approximately $1,845. At 30,000 km the saving is $3,690/yr.
FBT-exempt novated leasing
EVs under the Luxury Car Tax threshold ($91,661 in 2026-27) used for work are exempt from Fringe Benefits Tax when acquired via a novated lease. The saving can be $5,000–$15,000 per year depending on income and vehicle cost — effectively allowing purchase with pre-tax salary.
Practical ways to lower your vehicle running costs
Fuel efficiency improvements
- Keep tyres inflated to recommended pressure (reduces fuel use 2–3%)
- Remove roof racks when not in use (reduce drag, save 5–15% fuel at highway speeds)
- Use cruise control on highways
- Service on schedule — dirty air filter increases fuel use ~10%
- Use the correct fuel grade (premium in a standard engine doesn’t help)
Insurance savings
- Compare quotes annually — switching insurer saves 20–40% in many cases
- Higher excess reduces premium significantly
- Named-driver policies cheaper than open policies for single-driver households
- Dashcam discounts available from some insurers
❓ Frequently askedFrequently asked questions
What is the ATO cents per kilometre rate for 2026-27?
The ATO rate for 2026-27 is 91 cents per kilometre for work-related car expenses. The maximum you can claim using this method is 5,000 km, giving a maximum deduction of $4,550. The rate increased from 85c/km in 2023-24.
How do I calculate my cost per km?
Add all annual vehicle costs (fuel, insurance, rego, servicing, tyres, parking, tolls, and depreciation if included), then divide by total kilometres driven. Example: $9,000 total costs ÷ 15,000 km = 60c/km. Use the calculator above to break costs down by category.
Should I use the ATO method or logbook method?
The ATO cents-per-km method is simpler (no logbook required, max 5,000 km) and is often better for lower business use percentages. The logbook method requires a 12-week logbook but allows you to claim the business percentage of all actual costs — better if your business use is high or your total vehicle costs are above average. This calculator compares both methods when you enter your business use percentage in Standard mode.
What is the average cost per km for a car in Australia?
The average cost per km for a typical mid-size petrol car in Australia is approximately 55–70 cents per km when all costs including depreciation are included. Without depreciation, the figure drops to around 35–50 cents per km. The ATO sets its rate (91c/km in 2026-27) above most real-world averages.
Where these figures come from
Cost-of-living and inflation figures on this page are drawn from the Australian Bureau of Statistics (CPI), the Reserve Bank of Australia (inflation target and monetary policy), and the Fair Work Commission (minimum wage).
- Consumer Price Index (CPI) — ABS — Consumer Price Index.
- Household expenditure & income — ABS — Household Expenditure Survey.
- RBA inflation target — RBA — Inflation.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Fuel & energy price data — Australian Institute of Petroleum / AER.
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.