F1 Car Cost: How Much Does a Formula 1 Car Cost?
Budget cap, development and hidden costs of the most expensive motorsport
Introduction
F1 Car Cost: The True Price of the World's Most Expensive Racing Cars
How much does a Formula 1 car cost? The short answer: between €12 and €15 million for a complete car. But this estimate only tells part of the story. The price of an F1 car varies considerably depending on the team, developments made and components used. Most importantly, this figure doesn't include the operating costs of an entire season.
Since the introduction of the budget cap in 2021, Formula 1 has been trying to control spiraling expenses. Yet top teams still spend hundreds of millions of euros per year. Let's break down the true costs of the most exclusive motorsport on the planet.
The Cost of a Car: Component by Component
A modern F1 car is an assembly of thousands of parts, each manufactured to standards of excellence that drive up prices.
F1 Price Breakdown
| Component | Estimated Cost | Share of Total |
|---|---|---|
| Power Unit | €10-15M | ~45% |
| Monocoque (carbon chassis) | €1-1.5M | ~8% |
| Gearbox | €0.8-1.2M | ~6% |
| Suspension system | €0.5-0.8M | ~4% |
| Aerodynamics (wings, floor) | €1.5-2.5M | ~12% |
| Steering wheel and electronics | €0.4-0.6M | ~3% |
| Brakes (carbon discs) | €0.3-0.5M | ~2% |
| Tyres (season allocation) | €2-2.5M | ~12% |
| Other (cooling, safety) | €0.5-1M | ~5% |
| TOTAL | €12-18M | 100% |
The Power Unit: The Centrepiece
The power unit represents nearly half the cost of an F1 car. This complex unit includes:
Internal Combustion Engine (ICE): €3-4M
- 1.6-litre turbo V6
- Over 1000 machined parts
- Micron-level tolerances
Turbocharger: €1-1.5M
- Rotation up to 125,000 rpm
- High-temperature alloys
MGU-K: €1.5-2M
- 120 kW electric motor (350 kW in 2026)
- Rare earth magnets
MGU-H: €2-3M
- Ultra-complex technology
- Removed in 2026
Battery: €1-1.5M
- High-density storage
- Integrated cooling system
Control System: €0.5-1M
- FIA standardised ECU
- Proprietary software by engine manufacturer
The Monocoque: Survival Cell
The carbon fibre chassis costs between €1 and €1.5 million. This price is explained by:
- Premium materials: Carbon fibre pre-impregnated with epoxy resin
- Handcrafted manufacture: Hundreds of hours of manual work
- Crash tests: Mandatory FIA homologation (cost: ~€500,000)
- Lifespan: A monocoque can be used for several races
Aerodynamics: Ongoing Investment
Aerodynamic elements are constantly renewed:
| Element | Unit Cost | Replacement Frequency |
|---|---|---|
| Front wing | €150-200K | 3-4 specs/season + damage |
| Rear wing | €80-120K | 2-3 specs/season |
| Floor | €300-500K | 5-8 specs/season |
| Sidepods | €100-150K | 2-3 specs/season |
| Engine cover | €50-80K | 2-3 specs/season |
The Budget Cap: Spending Ceiling Since 2021
The budget cap has revolutionised the economics of Formula 1. This ceiling limits team spending to reduce the gap between rich and less wealthy teams.
Budget Cap Evolution
| Year | Cap | Adjustments |
|---|---|---|
| 2021 | $145M | Introduction |
| 2022 | $140M | -$5M planned |
| 2023 | $135M | +3.1% inflation |
| 2024 | $135M | Base maintained |
| 2025 | $135M | Inflation adjusted |
What is INCLUDED in the Budget Cap
- Chassis and aerodynamic development
- Parts manufacturing
- Technical staff salaries (excluding top 3 earners)
- Testing
- Race logistics
- Operational infrastructure
What is EXCLUDED from the Budget Cap
| Exclusion | Typical Expense | Impact |
|---|---|---|
| Driver salaries | €10-55M/year | No limit |
| Top 3 salaries (management) | €5-15M/year | No limit |
| Marketing and sponsors | Variable | No limit |
| Power Unit costs | €15-20M/year | Client teams |
| FIA entry fees | ~€2M/year | Fixed |
| Heritage cars | Variable | Historic collections |
| Non-F1 projects | Variable | F1 Academy, Hypercar |
Penalties for Overspend
The Red Bull 2021 case showed the FIA takes the budget cap seriously:
| Overspend | Minimum Sanction |
|---|---|
| < 5% (minor) | Financial fine |
| > 5% (major) | Wind tunnel time reduction, points deduction |
| Deliberate fraud | Possible exclusion |
Red Bull 2021 Case: $1.8M overspend → $7M fine + 10% wind tunnel time reduction.
Total Budget of an F1 Team
The budget cap represents only part of expenses. Here's the real cost of running a Formula 1 team.
Total Budget Breakdown (Top Teams)
| Item | Estimated Amount | Budget Cap |
|---|---|---|
| Technical operations | $135M | ✓ Included |
| Power Unit | $15-20M | ✗ Excluded |
| Driver salaries | $20-70M | ✗ Excluded |
| Top management | $10-20M | ✗ Excluded |
| Marketing | $20-50M | ✗ Excluded |
| Factory and infrastructure | $30-50M | ✗ Excluded |
| TOTAL | $230-350M | - |
Comparison by Team (2024)
| Team | Estimated Budget | Power Unit | Performance |
|---|---|---|---|
| Red Bull | ~$300M | RB Powertrains | Champions |
| Ferrari | ~$290M | Ferrari | P2 constructors |
| Mercedes | ~$280M | Mercedes | P4 constructors |
| McLaren | ~$250M | Mercedes | P3 constructors |
| Aston Martin | ~$230M | Mercedes | P5 constructors |
| Alpine | ~$200M | Renault | P6 constructors |
| Williams | ~$170M | Mercedes | P9 constructors |
| Haas | ~$150M | Ferrari | P7 constructors |
| Racing Bulls | ~$160M | RB Powertrains | P8 constructors |
| Kick Sauber | ~$160M | Ferrari | P10 constructors |
Driver Salaries: The Biggest Contracts
Driver salaries are excluded from the budget cap, creating an unlimited spending category.
Top 10 Salaries 2025 (estimates)
| Driver | Team | Salary/year | Contract Duration |
|---|---|---|---|
| Max Verstappen | Red Bull | €55M | Until 2028 |
| Lewis Hamilton | Ferrari | €50M | 2025-2026 |
| Lando Norris | McLaren | €35M | Until 2029 |
| Charles Leclerc | Ferrari | €25M | Until 2029 |
| Fernando Alonso | Aston Martin | €20M | 2025 |
| George Russell | Mercedes | €15M | Until 2025 |
| Carlos Sainz | Williams | €12M | 2025-2026 |
| Oscar Piastri | McLaren | €10M | Until 2026 |
| Pierre Gasly | Alpine | €8M | Until 2025 |
| Others | - | €1-5M | Variable |
Salary Evolution
Salaries have exploded in recent years:
| Period | Top Salary | Driver |
|---|---|---|
| 2010 | €30M | Fernando Alonso |
| 2015 | €40M | Sebastian Vettel |
| 2020 | €45M | Lewis Hamilton |
| 2025 | €55M | Max Verstappen |
Cost Per Race: The Price of a GP Weekend
Participating in a Grand Prix costs several million euros in logistics and operations.
Weekend Expenses (Top Team)
| Item | Cost |
|---|---|
| Transport (air/sea freight) | €300-500K |
| Personnel on site (80-100 people) | €200-300K |
| Hotels and catering | €150-200K |
| Tyres (race allocation) | €80-100K |
| Spare parts | €100-500K |
| Hospitality and sponsors | €100-300K |
| Total per race | €1-2M |
Crash Costs
An accident can be very expensive:
| Damage | Repair Cost |
|---|---|
| Front wing | €150-200K |
| Suspension | €50-100K |
| Floor | €300-500K |
| Monocoque | €1-1.5M |
| Power Unit | €5-10M |
Example: Zhou Guanyu's crash at Silverstone 2022 cost Alfa Romeo approximately €2.5M.
Return on Investment: Why Invest in F1?
Despite astronomical costs, sponsors and manufacturers continue to flock to Formula 1. Why?
F1 Marketing Value
| Metric | 2024 Value |
|---|---|
| Annual TV audience | 1.5 billion views |
| Track spectators | 5.7 million |
| Social media followers | 90+ million |
| Broadcast countries | 180+ |
ROI for Title Sponsors
Media exposure for a title sponsor is measured in hundreds of millions:
| Sponsor | Investment/year | Estimated Visibility |
|---|---|---|
| Oracle (Red Bull) | $100-150M | $500M advertising equivalent |
| HP (Ferrari) | $50-80M | $200M advertising equivalent |
| Petronas (Mercedes) | $50-70M | $300M advertising equivalent |
Why Manufacturers Stay
For car manufacturers, F1 offers:
- Brand image: Association with prestige and technology
- R&D: Technology transfer to production
- Customer engagement: Exclusive hospitality experiences
- Recruitment: Attraction of the best engineers
Cost Evolution: Yesterday, Today, Tomorrow
F1 spending has evolved considerably over the decades.
Budget History
| Year | Top Team Budget | Context |
|---|---|---|
| 1990 | $50M | Senna/Prost era |
| 2000 | $200M | Ferrari/McLaren war |
| 2010 | $350M | Red Bull dominant |
| 2019 | $450M | Before budget cap |
| 2025 | $300M | Under budget cap |
2026-2030 Projection
The 2026 regulations could modify the cost structure:
| Element | Cost Impact |
|---|---|
| New Power Units | +$50-100M for new manufacturers |
| Active aerodynamics | +$20-30M in development |
| Smaller cars | -10-20% on manufacturing |
| Adjusted budget cap | Possible increase to $140-145M |
FAQ: F1 Prices and Costs
Can you buy a Formula 1 car?
Technically yes, but not to drive. Recent F1 cars are not sold to private individuals by active teams. However, historic or demonstration cars are sometimes put up for sale. Price: from €500,000 for a show car to several million for a real racing F1. World championship-winning cars can exceed €10M at auction.
Why is F1 so expensive?
Three main factors: intensive R&D (thousands of engineering hours), premium materials (carbon, titanium, special alloys) and extreme manufacturing tolerances (sometimes to the micron). Every part is optimised for performance, not cost. Additionally, production volumes are tiny: a team manufactures 2-4 chassis per year.
Does the budget cap actually work?
Yes and no. The budget cap has reduced the gap between large and small teams: McLaren, starting from far behind, became 2025 world champions. However, exclusions (salaries, marketing, infrastructure) allow rich teams to maintain an advantage. The FIA is progressively strengthening controls to improve equity.
How much does a victory in F1 pay?
A victory doesn't pay money directly. However, championship performance determines the share of TV rights (Column 1 and Column 2 payments). The constructor champion can receive up to $100M more than the last-placed team. Sponsor bonuses are also linked to results.
Which team is most profitable?
Ferrari is historically the most profitable team thanks to its unique prestige, merchandising revenue and special FIA bonuses (historical heritage). McLaren and Mercedes follow with diversified business models (road cars, technologies). Red Bull uses F1 primarily as a marketing tool for its energy drinks.
The price of a Formula 1 car reflects the technical excellence of the most technologically advanced sport. To understand where this money goes, discover our features on the F1 engine and wind tunnel, two major expense items.
