Car Running Cost Calculator
Estimate annual car running costs and compare cents per kilometre with the logbook method.
Distance and fuel
Exclude private travel and ordinary home-to-work trips.
Enter your average price. The starting price is an example.
Vehicle expenses
For example, deductible depreciation. Exclude every running cost entered above.
Work-use estimate
Includes sole traders and eligible partnerships. Car must be owned or leased and meet the rules below.
Enter the annual business-use percentage supported by your records.
Results
Correct the marked field to update the estimate.
Annual running cost
$5,100
All entered travel, before any tax deductionMonthly running cost
$425
Annual running costs divided by 12Annual fuel cost
$2,400
Distance times consumption times fuel priceBusiness-use running costs
Cents-per-km deduction
$4,550
Alternative method, capped at 5,000 work kilometresLogbook deduction
$2,040
Alternative method, including additional eligible costsAt $0.91 per kilometre, 5,000 of the entered 6,000 work kilometres count under the capped method. Choose one deduction method per car per income year.
Annual running-cost breakdown
Fuel appears once. Additional eligible logbook costs are separate.
| Expense | Annual cost |
|---|---|
| Fuel | $2,400 |
| insurance | $1,200 |
| registration | $900 |
| servicing and tyres | $600 |
| Other annual running costs | $0 |
| Total running costs | $5,100 |
Starting values are a hypothetical petrol-car example. Both deduction estimates assume eligible unreimbursed expenses and supported work travel. A deduction reduces taxable income.
Keep purchases, loan principal and reimbursed costs out of these inputs. Additional eligible logbook costs do not enter the running-cost headline. Your entries stay in this browser.
Work Kilometres and Private Travel
Eligible work kilometres depend on the purpose of each trip. A long drive does not become deductible solely because it takes you to work.
For a mortgage broker, travel between the office and a client appointment can be work travel. Ordinary travel between home and a regular workplace is generally private. Exceptions depend on the circumstances, including where work duties begin.
Enter the total distance for all travel, then enter eligible work distance separately. The tool caps the cents-per-kilometre distance at 5,000. It leaves the full annual running cost unchanged.
The deduction comparison covers individuals (including sole traders) and partnerships with at least one individual partner. It assumes a car you own or lease. A car carries fewer than nine passengers and has a load capacity below one tonne. Companies, trusts, motorcycles and larger vehicles need different treatment. Select Other or unsure to retain running costs without a deduction estimate.
Comparing Calculation Methods
Annual fuel cost equals total kilometres divided by 100, multiplied by litres per 100 kilometres and price per litre. The calculator adds insurance, registration, servicing and other recurring costs. It divides that total by 12 for a monthly average.
The ATO cents-per-kilometre rate is 91 cents for 2026-27. The supported 2025-26 rate is 88 cents. Multiply the applicable rate by eligible work kilometres, up to 5,000 per car. This method already covers car expenses, including fuel and depreciation. Adding those costs to its result would count them twice.
The logbook estimate multiplies the eligible expense base by the business-use percentage. This tool's base contains the entered running costs plus additional eligible logbook costs. Enter only expenses that qualify before applying the work-use percentage. The additional field can include an established deductible depreciation amount, not the car's purchase price.
A car loan's principal repayments are capital costs. Interest can qualify to the extent allowed by the tax rules. Keep any eligible interest in the additional field and exclude it from the other inputs. Purchase costs, resale value and loan principal are outside this running-cost estimate.
Division 28 of the Income Tax Assessment Act sets the method and record rules. You use one method for a car in an income year. Comparing two amounts does not establish eligibility or make the larger amount an automatic claim.
Understanding the Estimate
In the hypothetical starting example, 15,000 kilometres at 8 litres per 100 kilometres uses 1,200 litres. At $2 per litre, fuel costs $2,400. Insurance of $1,200, registration of $900 and servicing of $600 bring annual running costs to $5,100, or $425 per month.
A supported 40% business-use percentage allocates $2,040 of those costs to work. With no additional eligible expenses, the logbook estimate is also $2,040. The 6,000 entered work kilometres produce a capped 2026-27 cents-per-kilometre estimate of $4,550. These are alternative deductions. They do not reduce the $5,100 running-cost total shown.
Keep records explaining each work trip's purpose and distance. The cents-per-kilometre method needs a reasonable work-distance calculation, even though receipts for each car expense are not required under that method.
A logbook normally covers at least 12 continuous weeks and can support up to five income years. Changes in travel patterns affect the annual percentage. If you hold the car for less than 12 weeks, the logbook covers the whole period you hold it.
Record journey dates, purposes and opening and closing odometer readings. Keep annual odometer readings and evidence of expenses. Retain the basis of the fuel estimate and any depreciation calculation. Use those records to support the business-use percentage and eligible expense base before preparing a claim.