How much money can you save by cycling more?

When people talk about the benefits of cycling, saving money often comes near the top of the list. But what does that actually look like in real life?

With household budgets under pressure from rising costs, particularly fuel as the conflict in Iran continues, many people are looking for practical ways to cut back.

Cycling won’t replace every car journey, and for many people it wouldn’t be realistic to try. But swapping some short trips from car to cycle can be a simple way to reduce everyday costs.

That is where cycling can make a real difference. Many journeys are short, yet lots are still made by car. Choosing to cycle some of those local trips instead can help lower spending on fuel, parking and car wear and tear – while also bringing health and wellbeing benefits.

Small changes can make a difference

This is not about getting rid of your car or cycling everywhere.

For many people, driving will still be necessary for some journeys. But there may be short trips in your week that could be done by bike instead: going to the shops, getting to school, visiting friends or travelling to work locally.

Those smaller changes can still add up.

According to Department for Transport statistics, 70% of all trips made in England in 2024 – the most recent year for which numbers are available – were under five miles, with a quarter of all trips under a mile. While many very short journeys are walked, most trips between one and five miles were still made by car or van.

That suggests there is real potential for more of these journeys to be cycled instead.

Bikes cost less to own and run

One of the clearest differences between cycling and driving is cost.

Research by Cyclescheme found that the annual cost of owning and running a cycle was much lower than running a car. The difference becomes even clearer when you look at the wider costs of car ownership, including fuel, insurance, servicing, tax and parking.

Buying a car is also a major upfront expense. Auto Express reported that the average cost of a new car in May 2024 was £42,340. Even used cars have become more expensive, with the Auto Traders Retail Price Index reporting an average used car price of £17,397 in April 2026.

By contrast, you can buy a good-quality commuter bike for around £350-£600, providing decent, reliable transport. Electric assist will cost more, with electric bikes costing around £1,854, on average.

Fuel savings from short journeys

Fuel is one of the easiest places to see a saving.

Petrol and diesel prices represent a significant – and growing – regular cost for households. The RAC Fuel Watch has unleaded petrol at 156.98 pence per litre and diesel at 188.53 pence per litre at the time of writing.

We looked at what could be saved by switching short car journeys of under five miles to cycling, based on some popular car brands. We looked at three different types of car: a Peugeot 208, the UK’s most fuel-efficient car; a Ford Focus, one of the most popular cars on our roads; and a Kia Sportage, one of the most popular SUVs in the UK.

In line with the National Travel Survey, on average car drivers made about 357 trips in 2024, and 183 of these were under five miles. If we average all these journeys to 3 miles, these short trips would add up to about 550 miles per year.

We used Confused.com’s fuel cost calculator to work out how much fuel for these trips would cost in total for each of our chosen car brands.

If you drive a Peugeot 208 or similar, you would save £63.92 per year on petrol and £76.76 on diesel alone. If you drive a Ford Focus, you would save £52.80 on a petrol model, and £63.41 on diesel. For Kia Sportage or similar drivers, those figures rise to £111.16 and £133.50 respectively.

On their own, those figures may not seem huge. But they reflect only fuel savings from short trips. They do not include savings on parking, servicing, insurance, tax or general wear and tear from driving less.

Maintenance costs are lower too

Running a car involves more than fuel.

The average cost of a full car service is from around £170 for a small car, £210 for a medium-sized car and £400-plus for a large car, according to the RAC. That doesn’t include repairs, replacement parts or labour.

Bike servicing is much cheaper. A service typically costs between £50 and £200, depending on the bike and the level of work needed. And Cycling UK members can get a free bike check with Evans.

There is another difference too: many cycle repairs can be done at home. Fixing a puncture, cleaning a drivetrain or adjusting brakes is much more accessible than most car maintenance. That means cycling can be a lower-cost option not just to use, but to keep in good working order.

One big difference is that many cyclists can do most repairs themselves; this isn’t true of cars anymore. Cycling UK has lots of helpful videos, advice and courses to help you improve your bike mechanic skills.

Insurance and tax

The average cost of car insurance may have fallen in the past year, but this is from a high of £995 in 2023. In 2026, the average cost of fully comprehensive car insurance in the UK is £711 a year.

However, premiums vary due to things like age of the driver and where in the country they live. They’ll be much higher for a 20-year-old living in Greater Manchester, for example.

Unlike with cars, there is no legal obligation to insure your cycle. That doesn’t mean you shouldn’t, though. A Cycling UK membership comes with free £10 million liability insurance cover. With individual membership starting at £33 a year, this is a huge saving.

But even comprehensive cycle-specific insurance is much cheaper than that for a motor vehicle, at about £50 for a £1,000 bike. Members can also claim a 10% discount on fully comprehensive insurance with Bikmo.

Then there is is Vehicle Excise Duty (VED). This is determined by how polluting your vehicle is. You’ll pay a rate based on a vehicle’s CO2 emissions the first time it’s registered. You’ll then pay vehicle tax every 6 or 12 months at a different rate. Vehicle tax rates explained.

If you drive an electric car with no emissions, you don’t have to pay VED, but if you drive a gas-guzzling SUV, you’ll pay a lot more. That’s why people cycling don’t have to pay VED – they burn calories, not carbon.

As a guide, with an average family car, such as a Ford Focus, you’ll pay £280 a year in VED.

What the overall costs look like

When Cycling UK compared typical first-year and ongoing costs for cars and cycles, the gap was clear.

Comparing an average bike with an average family car such as a Ford Focus, the saving in the first year of ownership came to more than £28,000, largely because of the much higher purchase price of the car (about £28,500, compared to about £835 for a cycle). In later years, the annual saving was still around £771.

A more realistic comparison for some households may be replacing a second car or short-trip ‘runaround’ with an e-cycle. Comparing a Carrera Impel electric hybrid (costing £1,099) with a Peugeot 208 (£20,260 for an entry-level model), the first-year saving was calculated at more than £21,000, with ongoing yearly savings of more than £700 in most cases.

The exact figures will vary depending on what you own and how often you travel, but the overall picture is consistent: cycling costs much less than driving.