1Calculate monthly fuel
Multiply regular monthly distance by fuel cost per kilometre. Use actual mileage rather than the brochure figure.
2Annualise service and repairs
Add scheduled service, repairs, washing and consumables for a year, then divide by twelve.
3Include insurance and taxes
Insurance renewal and applicable taxes are periodic costs. Saving monthly avoids a sudden annual cash requirement.
4Account for tyres and battery
Estimate replacement intervals and divide their cost across the expected months of use.
5Understand depreciation
Depreciation is not a monthly payment, but it is a real ownership cost. It matters when comparing ownership with alternative transport.
Practical checklist
- Track monthly kilometres
- Use real mileage
- Annualise insurance
- Create tyre and repair funds
- Consider depreciation
Frequently asked questions
Is EMI part of running cost?
EMI is a financing cash flow. For a complete household budget, include it separately.
How do I estimate tyre cost monthly?
Divide expected replacement cost by the estimated months between replacements.
Why include depreciation?
It represents the reduction in resale value over time.
Use the related free tool
Turn the guide into a practical estimate using our free calculator.
Vehicle Cost Per KM Calculator →