Car Running Cost Calculator Australia
Free Australian car running cost calculator. Add up your annual fuel, registration and CTP, insurance, and servicing and tyres to see what your car really costs to run each year, plus a cost-per-kilometre figure and weekly and monthly breakdowns. Fuel cost is calculated from your annual kilometres, fuel economy (L/100km) and current fuel price. Excludes depreciation and finance, so you can layer those on for a full total-cost-of-ownership view.
Your car
Per yearAverage Australian car drives around 12,000 to 15,000 km a year.
Use your trip computer or the car's sticker figure.
- Total Annual Cost
- $5,300
- $442 per month
- Cost Per Kilometre
- $0.35
- $102 per week
- Weekly
- $102
- Monthly
- $442
- Annual Fuel
- $2,400
- Fuel Used / yr
- 1200 L
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How to calculate your car's annual running cost
The true cost of owning a car in Australia is far more than the fuel you put in the tank. To work out your real annual running cost, add up the four big cash costs you pay every year: fuel, registration and CTP (compulsory third party insurance), your car insurance premium, and servicing plus tyres. Divide that total by how far you drive in a year and you get your cost per kilometre.
The car running cost formula
- Annual fuel cost = (annual km ÷ 100) × fuel economy (L/100km) × fuel price ($/L)
- Total annual cost = annual fuel cost + registration & CTP + insurance + servicing & tyres
- Cost per kilometre = total annual cost ÷ annual km
Worked example
Say you drive 15,000 km a year in a car that uses 8 L/100km, fuel costs $2.00/L, and your fixed costs are $900 rego and CTP, $1,200 insurance, and $800 servicing and tyres:
- Fuel = (15,000 ÷ 100) × 8 × $2.00 = 150 × 8 × $2.00 = $2,400
- Total annual cost = $2,400 + $900 + $1,200 + $800 = $5,300
- Cost per kilometre = $5,300 ÷ 15,000 = about 35c/km
What this calculator does and doesn't include
This tool covers the out-of-pocket running costs you pay each year. It does not include depreciation (the value your car loses over time), loan or lease repayments, parking, tolls, or fines. If you want a full total-cost-of-ownership figure, for example to compare buying versus leasing, or petrol versus electric, add those items on top of the total here.
Tips to cut your running costs
Driving fewer kilometres spreads your fixed costs (rego, CTP and insurance) over less distance, so your cost per kilometre actually rises when you drive less, but your total spend falls. The biggest variable lever is fuel: keeping tyres at the right pressure, servicing on schedule, and shopping the weekly fuel-price cycle can all trim the fuel line. Shopping around at insurance renewal time is usually the single biggest fixed-cost saving.
Frequently asked questions
How much does it cost to own a car in Australia?
Most Australian households spend roughly $13,000 to $18,000 a year to run one car when you include fuel, registration, CTP, insurance, servicing, tyres and depreciation. Your exact figure depends on how far you drive, your car's fuel economy and current fuel prices. Enter your own numbers above for a personalised annual running cost and a cost-per-kilometre figure.
How do I calculate my car's annual fuel cost?
Annual fuel cost = (annual kilometres ÷ 100) × fuel economy (L/100km) × fuel price ($/L). For example, 15,000 km a year in a car using 8 L/100km at $2.00/L = (15,000 ÷ 100) × 8 × $2.00 = 150 × 8 × $2.00 = $2,400 a year in fuel.
What is a good cost per kilometre for a car?
Cost per kilometre is your total annual running cost divided by the kilometres you drive in a year. As a rough guide, a small-to-medium private car typically lands around 30 to 60 cents per kilometre once you add fuel, rego, CTP, insurance and servicing (excluding depreciation and finance). The more you drive, the lower the per-kilometre cost because fixed costs like rego and insurance are spread over more kilometres.
Does this calculator include depreciation and loan repayments?
No. This tool covers the cash running costs you pay each year, fuel, registration and CTP, insurance, and servicing and tyres. It does not include depreciation (the car losing value over time), loan or lease repayments, or parking and tolls. Add those separately if you want a full total-cost-of-ownership figure.
Can I claim car running costs as a tax deduction?
If you use your car for work or business, you may be able to claim a deduction. Sole traders and individuals can use the cents-per-kilometre method (91 cents per business kilometre for FY 2026-27, capped at 5,000 business km, so a maximum of $4,550) or the logbook method, which claims the work-related percentage of your actual running costs with no cap. Once you drive more than about 5,000 business kilometres a year the logbook method usually claims more. Keep a logbook and receipts. Check ato.gov.au or a registered tax agent for your situation.
Why is my car's fuel economy higher than the sticker figure?
Real-world fuel use is usually higher than the official ADR (lab) figure on the sticker, especially for stop-start city driving, short trips, a loaded car, air-conditioning, or aggressive driving. For an accurate annual cost, use the L/100km from your own trip computer or work it out by dividing litres filled by kilometres driven, then multiplying by 100.
Sources & methodology
How we calculate this
This calculator adds your four annual running-cost inputs, fuel, registration and CTP, insurance, and servicing and tyres, into a total annual cost, then divides by your annual kilometres for a cost-per-kilometre figure. Fuel cost is (annual km ÷ 100) × fuel economy (L/100km) × fuel price ($/L). It excludes depreciation, finance, parking and tolls. Everything is computed in your browser, nothing you enter is stored or sent to a server.
Authoritative sources
Reviewed by Bishal Shrestha, Founder of OneBookPlus, 10+ years building tools with Australian tax-agent and BAS-agent practices. Page last reviewed and updated: .
Disclaimer: This tool provides estimates only and is not professional advice. For decisions that affect your tax, finances, or compliance position, consult a registered professional.
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