Short answer
Cost per kilometre is total cost over the period divided by distance. It includes depreciation, finance, insurance, tax, maintenance and energy. At low mileage, the large fixed-cost block is spread across fewer kilometres.
Important variables
- Net depreciation
- Finance interest and fees
- Insurance, tax and maintenance
- Mileage and real consumption
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Worked example
€24,000 total cost over four years and 60,000 km gives €0.40 per kilometre. Only 40,000 km with the same fixed cost would give €0.60.
Break-even: What changes the result?
More kilometres lower fixed cost per kilometre but increase energy, maintenance and potentially depreciation. Cost per kilometre is therefore not a constant vehicle specification.
Common mistakes
- Dividing fuel only
- Counting purchase price instead of depreciation
- Comparing mileage without holding period
Terms in this guide
Sources & assumptions
- European Commission — Consumer credit (2026-08-17)
- RATIOXA — Methodology and formulas (2026-08-17)
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