Ask someone what their car costs and they will usually tell you what they spend on fuel. But fuel is often less than half of it. Insurance, servicing, tyres, road tax and parking all count too, and they come in lumps that are easy to forget.

Cost per km puts all of it into one number.

The formula

Cost per km = everything you spent on the car ÷ the distance you drove

Use the same period for both: a month, a year, or everything since you started keeping track. Take the distance from the odometer at the start and at the end.

What to count

A worked example

These figures are made up to show the sum. Yours will be different.

Cost over one year Amount
Petrol RM 3,000
Servicing RM 600
Tyres RM 800
Insurance RM 1,500
Road tax RM 90
Parking and tolls RM 1,200
Total RM 7,190

The car drove 15,000 km that year.

So fuel was less than half of what the car really cost to drive. A 10 km trip to the shops cost RM 4.80, not RM 2.

Why per km, and not per month?

A monthly total goes up when you drive more, so it can't tell you whether the car got more expensive or you just used it more. Cost per km can. It also compares cars that are nothing alike: a petrol hatchback and an electric SUV each end up with one figure in the same unit.

Should you include the price of the car?

What you have covered so far is the running cost. It answers "what does it cost to keep this car on the road?"

There's a second, bigger number: what the car itself costs you as it loses value. As a rough example, a car bought for RM 60,000 and sold for RM 30,000 five years and 75,000 km later has lost RM 30,000. That's another RM 0.40 per km on top of the running cost.

Both numbers are useful. Use the running cost to compare months or to spot a bill that went up. Use the one with the purchase price when deciding whether to buy, keep or replace a car.

Tips

How OdoTick does it

OdoTick is built around this number. Log fill-ups, charges and any other bill, and it shows your cost per km on the home screen. You can see it for running costs alone or with the purchase price included, for petrol, diesel, electric and hybrid cars alike. Until the odometer has moved past your first reading, it shows a dash instead of a guess.