🇦🇺 Australia

Car Cost Calculator Australia — Total Cost of Ownership

Calculate your true annual car costs including depreciation, compare EV vs petrol running costs, and decide whether to keep or replace your current vehicle.

Depreciation is the single largest car cost — often bigger than fuel, insurance, and registration combined. A new $45K car loses ~$9,000 in its first year alone.
$
Original purchase price or current market value
How old the car is now
Average Australian drives ~15,000 km/year
L/100km
Check your car's specs or fuel receipts
$/L
Average unleaded price in your area
$
Annual registration fee — varies by state
$
Compulsory third party — $400-$700/year
$
Annual comprehensive insurance premium
$
Includes regular servicing, tyres, repairs

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How to Use This Calculator

Tab "Annual TCO"

Enter your car purchase price, age of car, and annual km driven. The calculator estimates total annual cost including depreciation, fuel, and all running costs. Under "More options," adjust fuel consumption, fuel price, registration, CTP, comprehensive insurance, and servicing to match your actual costs. The result shows your cost per km and cost per day.

Tab "EV vs Petrol"

Compare the running costs of an electric vehicle against a petrol equivalent. Enter the purchase price of each, your annual km, and under "More options" adjust electricity cost, petrol price, and efficiency figures. See the annual fuel saving and how many years until the EV's higher purchase price is offset by lower running costs.

Tab "Keep vs Replace"

Wondering if it's time to replace your car? Enter your current car's value, annual repair costs, and the price of a replacement. The calculator compares the total annual cost of keeping your current car (repairs + depreciation + running costs) against the first-year cost of a new car (depreciation + running costs). A clear verdict tells you which option is cheaper.

The Formulas

Depreciation:
Year 1: Purchase price x 20%
Years 2-5: Remaining value x 12%
Years 6+: Remaining value x 8%

Annual fuel cost:
Fuel cost = (Annual km / 100) x Consumption (L/100km) x Fuel price ($/L)

Total annual cost (TCO):
TCO = Depreciation + Fuel + Registration + CTP + Insurance + Servicing

EV fuel cost:
EV annual = (Efficiency kWh/100km / 100) x Annual km x (Electricity c/kWh / 100)

Break-even (EV vs Petrol):
Break-even years = (EV price - Petrol price) / Annual fuel saving

Keep vs Replace:
Cost to keep = Annual repairs + Current car depreciation + Running costs
Cost of new = New car depreciation (year 1) + Running costs

Depreciation rates are averages based on Australian market data. Actual depreciation varies significantly by make, model, condition, and market demand. Luxury cars and new cars depreciate faster; popular used cars (e.g., Toyota LandCruiser) depreciate slower.

Example

Mark — Drives a 2023 Toyota RAV4, purchased for $48,000

Car is 2 years old, drives 18,000 km/year. Fuel consumption 7.5 L/100km at $2.15/L. Registration $650, CTP $500, comprehensive insurance $1,600, servicing $900.

Depreciation (year 3)$3,932
Fuel cost$2,903
Running costs (fuel + insurance + rego + CTP + servicing)$6,553
Total annual cost$10,485
Cost per km$0.58

Mark's RAV4 costs him $10,485 per year or $0.58 per kilometre. Depreciation ($3,932) is the single biggest cost — more than fuel ($2,903). If he drove 25,000 km/year instead, his cost per km would drop to $0.50 because depreciation is a fixed cost regardless of distance.

Average Car Costs in Australia

Cost CategoryTypical Range (per year)
Depreciation (new car, year 1)15-25% of purchase price
Depreciation (years 2-5)10-15% of remaining value
Registration$300 - $800 (varies by state)
CTP insurance (green slip)$400 - $700 (varies by state)
Comprehensive insurance$800 - $2,500
Fuel (15,000 km @ 8L/100km @ $2.10/L)~$2,520
Servicing & maintenance$800 - $1,500
Tyres (pro-rata)$300 - $500
Total (mid-range car)$10,000 - $15,000

Frequently Asked Questions

A $45,000 new car loses about $9,000 in its first year (20% depreciation). Over 5 years, total depreciation is approximately $21,000. Meanwhile, 5 years of fuel costs about $12,600 (at 15,000 km/year). Depreciation is an invisible cost because you do not write a cheque for it — but it is real money lost when you eventually sell. Buying a 2-3 year old car avoids the steepest depreciation curve.
The calculator uses average depreciation rates and lets you input your actual costs for fuel, insurance, registration, and servicing. Depreciation varies significantly by make and model — a Toyota Corolla holds value better than a European luxury car. For the most accurate result, look up your specific car's resale value on sites like RedBook or CarsGuide to calculate actual depreciation, then input your real costs for everything else.
From a pure cost perspective, a 1-3 year old used car is almost always the best value. You avoid the steepest depreciation (year 1) while still getting a relatively new car with warranty remaining. A 2-year-old car that was $45,000 new might cost $33,000 — saving you $12,000 in depreciation that the first owner absorbed. The trade-off is less choice in colour/options and no "new car" experience.
EVs are significantly cheaper to run — fuel costs are 60-80% lower, and servicing costs are lower (no oil changes, fewer brake replacements due to regenerative braking). However, EVs currently have a higher purchase price, which means the total cost of ownership depends on how long you keep the car and how far you drive. For high-mileage drivers (20,000+ km/year), the break-even point is typically 5-7 years. For low-mileage drivers, it may take 10+ years.
This calculator excludes: parking costs ($1,000-$3,000/year in city areas), tolls, fines, car wash, roadside assistance membership, car loan interest payments, and the opportunity cost of capital (the investment returns you could earn if the money was not tied up in a depreciating asset). For a complete picture, add these costs to the calculator result.

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