Running cost is the money required to keep a car legal, maintained and moving. It is separate from depreciation and financing, which can be larger than all the items below.
The monthly formula
Annual road tax ÷ 12 + fuel or charging + ERP + parking + annual insurance ÷ 12 + annual maintenance reserve ÷ 12.
Use personal records wherever possible. Public rates help with tax and public parking, but energy discounts, private parking, premiums and repairs vary.
1. Road tax
For petrol cars, road tax is based on engine capacity. Under the current LTA six-month formula, a 1,600cc petrol car produces about S$371.45 for six months, or S$742.90 a year, before any age surcharge.
Do not use that example for every vehicle. Electric cars are assessed by motor power and an additional flat component. Petrol-electric cars are assessed under both engine-capacity and motor-power methods and pay the higher amount. Cars more than ten years old have an age surcharge rising from 10% to a maximum of 50%.
2. Fuel
Use monthly kilometres ÷ kilometres per litre × actual price per litre. At 1,000 km, 12 km/L and an illustrative S$2.80 per litre, the result is S$233.33 a month.
S$2.80 is a planning input, not a current retailer quote. Replace it with the amount on a recent receipt after the discounts you actually receive. Do not add fuel duty again to a pump price that already incorporates it.
3. ERP
ERP is route- and time-specific. The useful method is to average three months of transactions, or check the intended route and departure time through LTA. For illustration, one S$2 crossing on each of 20 working days costs S$40 a month; it is not a national average.
LTA reviews rates periodically and changes can take effect soon after an article is reviewed. This page deliberately does not reproduce a static rate table.
4. Parking
Separate home season parking, workplace or school parking, and shopping or appointment sessions. HDB’s published examples include S$80 monthly for a surface car park and S$110 for a multi-storey car park, but the actual charge depends on location, car-park type, eligibility and occupancy.
Private developments set different tariffs. A S$110 home season ticket plus S$150 at work and other destinations is already S$260 a month.
5. Insurance and maintenance
Valid motor insurance is compulsory. Premiums depend on the car, driver profile, use, cover and claims record, so use the renewal quotation for the exact vehicle and driver. A S$1,500 annual premium is S$125 a month.
Maintenance is irregular. Set aside a visible reserve for servicing, tyres, battery, inspections, wear items and unexpected repairs. S$150 a month is an illustrative S$1,800 annual reserve, not an official average. A newer warrantied car may use less; an older car may require much more.
Worked monthly example
| Cost | Assumption | Monthly |
|---|---|---|
| Road tax | S$742.90 annually | S$61.91 |
| Fuel | 1,000 km ÷ 12 km/L × S$2.80 | S$233.33 |
| ERP | S$2 on 20 days | S$40.00 |
| Parking | S$110 home + S$150 elsewhere | S$260.00 |
| Insurance | S$1,500 annually | S$125.00 |
| Maintenance | S$1,800 annually | S$150.00 |
| Total | Before depreciation and finance | S$870.24 |
This is a transparent hypothetical case, not a Singapore-wide average. Monthly cash outflow would add the loan instalment. Monthly economic cost would add depreciation plus finance interest and fees — not the full instalment.
Related guides
Primary sources
- LTA OneMotoring — Road tax
- LTA OneMotoring — ERP
- HDB — Season parking
- URA — Car parks
- LTA OneMotoring — Motor insurance requirements
Last fact-checked: 3 September 2026. Rules, fees and official pages can change; check the linked source before acting.