Cost Per Mile Car UK
Your true cost per mile includes much more than fuel. Depreciation, insurance, tax, servicing, and repairs all add up. Here is how to calculate the real figure — and how to reduce it.
Your True Cost Per Mile
Cost Per Mile: Worked Examples
| Car type | 5,000 mi/yr | 10,000 mi/yr | 20,000 mi/yr |
|---|---|---|---|
| Small petrol hatchback (Ford Fiesta) | ~65p/mile | ~38p/mile | ~27p/mile |
| Mid-range petrol hatchback (VW Golf) | ~82p/mile | ~47p/mile | ~31p/mile |
| Diesel family saloon (Ford Mondeo) | ~75p/mile | ~42p/mile | ~28p/mile |
| Premium saloon (BMW 3 Series) | ~130p/mile | ~72p/mile | ~48p/mile |
| Electric hatchback (Nissan Leaf) | ~70p/mile | ~38p/mile | ~24p/mile |
| Large SUV (Nissan Qashqai 1.3) | ~95p/mile | ~54p/mile | ~36p/mile |
All figures include fuel, insurance, road tax, MOT, servicing, tyres, and depreciation. Excludes purchase price. Based on 2026 UK rates.
Cost Per Mile Breakdown: What Goes Into Each Pence
This example uses a petrol hatchback (VW Golf 1.5 TSI, 2021) covering 10,000 miles per year:
| Cost element | Annual cost | Cost per mile | % of total |
|---|---|---|---|
| Fuel (petrol, 40mpg real) | £1,350 | ~13.5p | 28% |
| Depreciation (year 4–5) | £1,800 | ~18p | 37% |
| Insurance | £650 | ~6.5p | 13% |
| Road tax (VED) | £190 | ~1.9p | 4% |
| Servicing + MOT | £280 | ~2.8p | 6% |
| Tyres + consumables | £200 | ~2p | 4% |
| Repairs allowance | £400 | ~4p | 8% |
| Total | ~£4,870 | ~48.7p/mile | 100% |
Note how depreciation represents 37% of total cost — yet most drivers only think about fuel.
How to Reduce Your Cost Per Mile
Buy at 2–3 years old
Absorb the steepest depreciation period of a new car — typically 40–50% in the first three years. A 3-year-old car lets you benefit from modern reliability while avoiding peak value loss.
Choose a low insurance group
Insurance group has a massive impact on total cost per mile. A group 5 car costs £300–£500/yr to insure for an experienced driver. A group 40+ car may cost £1,500–£2,500.
Increase annual mileage (if practical)
The fixed costs of ownership — insurance, tax, MOT, depreciation — are identical whether you drive 3,000 or 15,000 miles. More miles dilutes these fixed costs per mile.
Drive smoothly to improve MPG
Aggressive acceleration, hard braking, and high-speed motorway driving reduce real-world fuel economy by 15–30%. Smooth driving saves 3–5p/mile on petrol or diesel.
Shop insurance at renewal
Loyalty to your insurer is consistently penalised. New customer rates average 10–25% below renewal quotes. Switching every year or two typically saves £100–£400 annually.
Use an independent for servicing
A reputable independent specialist charges 30–50% less than a main dealer for identical work. On a £300 full service, that's £100–£150 saved each year.
Related Guides
Frequently Asked Questions
What is the average cost per mile to drive a car in the UK?
Why is cost per mile higher for low-mileage drivers?
How do I calculate my cost per mile?
Is it cheaper per mile to drive an electric car?
What does HMRC's mileage rate cover?
How can I reduce my cost per mile?
Ste Robinson is the founder of MotR, helping UK drivers check MOT history, tax status, vehicle records and ownership information using official DVLA and DVSA data.
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Check Vehicle FreeCost-per-mile figures are 2026 UK estimates based on industry-average depreciation and fuel prices; actual results vary by vehicle, mileage and driving style. MotR is not affiliated with DVLA, DVSA or any vehicle manufacturer. Last reviewed 12 June 2026.
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