How the Car Cost Per Km Calculator Works
The real cost of a car goes well beyond fuel. This calculator determines the TCO (Total Cost of Ownership) and divides it by kilometers driven, returning the true cost per km of your vehicle.
The Formula
Total Cost = Purchase Price + (Insurance + Registration + Maintenance + Fuel) x Years of Ownership
Cost per km = Total Cost / (Km/year x Years of Ownership)
Main Cost Items
Fixed costs (paid regardless of use):
- Depreciation (purchase): often the largest item, especially for new cars that lose 15-25% of value in the first year
- Insurance: mandatory, varies by location, driving record, age, and vehicle type
- Registration/taxes: annual vehicle taxes
Variable costs (proportional to km driven):
- Fuel/energy: the second largest item
- Maintenance: services, tires, brakes, fluids. Increases with vehicle age
The Mileage Paradox
An often-overlooked aspect: the more km you drive, the less it costs per km. This is because fixed costs (purchase, insurance, taxes) are spread over more kilometers. A car driving 30,000 km/year has a significantly lower cost per km than the same car at 10,000 km/year.