TL;DR: The cost of running a van depends on factors such as the vehicle, mileage, fuel or electricity costs, insurance, tax, servicing and depreciation. There is no single figure that applies to every van, but calculating your annual costs and cost per mile can give you a useful estimate.
Buying a van is only the start of the expense. Whether you use one for work or personal journeys, there are several ongoing costs to consider.
How much does it cost to run a van?
There is no standard annual cost for running a van. A small van covering 8,000 miles a year will have very different running costs from a large van covering 30,000 miles.
The main expenses are fuel or electricity, insurance, vehicle tax, servicing, repairs, tyres, MOTs, depreciation and any parking, toll or clean air zone charges.
If you're financing or leasing your van, you'll also need to include your monthly payments and any applicable interest or end-of-contract charges.
Fuel costs
Fuel can be one of the biggest running costs for a diesel or petrol van. Your annual bill depends on your mileage, fuel economy and the price you pay at the pump.
You can estimate your annual fuel cost using:
Annual miles ÷ miles per gallon × fuel price per litre × 4.546
Fuel prices change regularly, so use a current pump price when calculating your expected costs.
Fuel duty also changed during 2026. The main fuel duty rate increased by 1p per litre from 1 September 2026, with further scheduled increases later in the 2026/27 financial year.
Electric van charging costs
Electric vans don't require petrol or diesel, but charging is still a running cost.
How much you spend depends on the van's efficiency, how far you drive and where you charge. Home charging will generally have a different cost from using public charging points.
HMRC's advisory rates from September 2026 are 7p per mile for home-charged electric vehicles and 15p per mile for public charging. These are HMRC advisory rates for specific company-car purposes, rather than a guarantee of what an electric van will actually cost to charge.
For a more accurate estimate, use your van's electricity consumption and your own electricity tariff.
Van insurance
Van insurance is another essential cost and can vary considerably between drivers and vehicles.
Your premium can depend on factors including your age, driving history, postcode, annual mileage, the van itself and how you use it. Business users should also make sure their policy covers the type of work they do and what they carry.
It's worth getting an insurance quote before buying a van so you can include the cost in your overall budget.
Van road tax
Most light goods vehicles up to 3,500kg fall under a standard vehicle tax rate.
From April 2026, the annual rate for a light goods vehicle registered on or after 1 March 2001 and not exceeding 3,500kg is £360. Zero-emission vans are included in this category.
Older vans and vehicles in different tax categories can have different rates, so check the specific vehicle before buying.
Servicing and maintenance
Regular servicing helps keep your van safe and reliable, but the cost varies depending on the make, model, age and mileage.
You'll need to budget for routine servicing as well as items such as brakes, filters, batteries, suspension, tyres and, on applicable diesel vans, AdBlue.
A van used heavily for work may also experience more wear than one used occasionally, making regular maintenance particularly important.
MOT costs
Most vans need their first MOT when they are three years old and then require an annual test.
For vans up to 3,500kg, the maximum MOT fee depends on the vehicle's class. The current maximum fee is £54.85 for goods vehicles up to 3,000kg and £58.60 for goods vehicles over 3,000kg up to 3,500kg.
Remember that the MOT fee isn't necessarily the total cost. If your van fails and needs repairs, your bill will be higher.
Tyres and repairs
Tyres are an important cost for van owners, particularly if you cover high mileage or regularly carry heavy loads.
How quickly tyres wear depends on mileage, load, driving style, tyre quality and road conditions. Keeping your tyres correctly inflated can help reduce unnecessary wear and improve efficiency.
It's also sensible to budget for unexpected repairs, even if your van is well maintained.
Depreciation
Depreciation is one of the easiest van running costs to overlook because you don't receive a regular bill for it.
A van normally loses value as it gets older and accumulates mileage. If you buy a van for £25,000 and eventually sell it for £15,000, the £10,000 difference is depreciation.
The rate at which a van loses value depends on factors such as its age, mileage, condition, specification and demand for that particular model.
Clean air zones and other charges
Where you drive can also affect how much your van costs to run.
Some towns and cities operate Clean Air Zones, while London's ULEZ applies to vans up to and including 3.5 tonnes that don't meet the required emissions standards.
The current ULEZ charge is £12.50 per day for affected vehicles. The Congestion Charge is separate and currently costs £18 per day under the standard rate, although some vehicles may qualify for discounts.
If you regularly work in cities, check the relevant restrictions before choosing a van. Enter your reg into Regit's free ULEZ checker to see your vehicle's ULEZ compliance.
How much does a van cost per mile?
Calculating your cost per mile can give you a better idea of the true cost of running your van.
Add your annual costs, including fuel or electricity, insurance, tax, servicing, repairs, tyres, MOTs and depreciation. Then divide the total by the number of miles you drive.
For example, if your van costs £8,000 to run over a year and you cover 20,000 miles:
£8,000 ÷ 20,000 = 40p per mile
Your actual figure could be higher or lower depending on your van and how you use it.
What is the HMRC mileage rate for vans?
For the 2026/27 tax year, HMRC's approved mileage rate for cars and vans is 55p per mile for the first 10,000 business miles and 25p per mile after that when using the simplified expenses method for eligible self-employed users.
This is a tax mileage rate, not an estimate of the actual cost of running every van.
If you're self-employed, you may be able to use simplified expenses instead of calculating your actual vehicle costs. HMRC's rules depend on your circumstances and how you use the vehicle.
Can I claim van running costs against tax?
If you're self-employed, some business motoring costs may be allowable expenses. These can include fuel, insurance, repairs, servicing, vehicle tax, parking and breakdown cover when they relate to business use.
You may instead be able to use HMRC's simplified mileage rate. Check the latest HMRC guidance if you're unsure which method applies to you.
Is an electric van cheaper to run?
An electric van can have lower energy and maintenance costs in some circumstances, but that doesn't automatically make it cheaper overall.
You should consider the purchase or finance cost, depreciation, insurance, charging costs, servicing and the type of journeys you make.
Home charging can also make a significant difference compared with relying heavily on public charging.
How can I reduce my van running costs?
Choosing the right van for your needs is one of the simplest ways to control costs. A van that is unnecessarily large or powerful could cost more to buy, insure and run.
Regular servicing, correct tyre pressures and efficient driving can also help keep running costs down.
If you use your van for work, keep track of your mileage and expenses. This will help you understand your real cost per mile and identify where you could make savings.
What should I consider before buying a van?
Don't just look at the purchase price. Think about how many miles you'll drive, how much you'll pay for insurance, fuel or electricity, tax and maintenance, and whether you'll regularly drive through areas with additional charges.
If you're financing or leasing, consider the total amount you'll pay rather than just the monthly payment.
It can also be worth checking a van's expected resale value, as depreciation can make a significant difference to its overall cost.
Final thoughts
The cost of running a van depends on how much you drive, what you drive and where you drive it.
Fuel or electricity, insurance, tax, servicing, MOTs, tyres, repairs and depreciation can all add to the cost. For business users, mileage and tax treatment are also important considerations.
Before buying a van, estimate your annual costs and work out the cost per mile. This will give you a clearer picture of what the van is likely to cost you over the time you own it.
Looking for your next van? Explore vans for sale on Regit and find a vehicle that fits your needs and budget.