Ownership costs
How much does driving really cost per km?
Cost per kilometre can mean fuel alone, marginal trip cost or total ownership cost. Specify the boundary before comparing numbers.
Separate variable and fixed costs
Fuel or electricity tends to rise with distance. Insurance and some taxes are paid even when you drive little. Maintenance contains both time-based and mileage-based items. Depreciation is the reduction from purchase price to eventual resale value, not an additional purchase payment.
Build a full-year example
Suppose annual fuel is 1,500, maintenance 500, insurance 800 and depreciation 2,000. Total annual cost is 4,800 before other expenses. At 12,000 km it is 0.40/km; fuel alone is 0.125/km. Both are correct for their stated boundaries.
Avoid a misleading mileage comparison
Driving fewer kilometres reduces fuel spending but spreads fixed costs across fewer kilometres. Total spending can fall while cost per kilometre rises. For a single optional trip, use incremental costs; for choosing a vehicle, compare total costs over the ownership period.
Method and references
Examples use nominal geometry and fixed-price scenarios, with no vehicle-specific specifications implied. See our calculation methodology and editorial policy.
Unit reference: NIST Guide to the SI: conversion factors. Financial examples are arithmetic illustrations, not market-price forecasts.