What is F1's cost cap and how much is it?
Teams cannot spend whatever they want. 215 million dollars in 2026: what counts, what does not and why it has gone up.
Summary
- The 2026 cost cap is 215 million dollars per team, compared with a base of 135 million plus inflation in 2025.
- It counts most of what it costs to build and run the car; it does not count, for example, the drivers or the three best-paid employees.
- Engines have a separate limit.
Step by step
What it is
A ceiling on the money a team can spend in a year on most of its F1 activity. The idea is to narrow the gap between rich and small teams.
How much it is in 2026
215 million dollars, compared with a base of 135 million plus inflation in 2025. According to F1, the net effect is roughly neutral once the changes in what counts are taken into account.
Why it rises so much
Because the cap now includes costs that used to be left out: the separate capital-expenditure limit (36 million over four years) was scrapped and its annual depreciation is counted.
What counts and what does not
Car parts, running costs, most staff, spares and transport count. Drivers' salaries and those of the three best-paid employees, travel, marketing, property and legal costs and entry and licence fees are left out.
And the engines
Power units have a separate limit: 190 million dollars in 2026, with extra allowances for new or struggling manufacturers.
Where to see it on Formuradar
Did you get it?
Glossary
- Cost cap
- A ceiling on the money a team can spend per year on most of what it costs to build and run the car. Drivers' salaries, for example, are left out.
Sources
- The 2026 cost cap is 215 million dollars, 80 more than the 2025 base (135 million plus inflation); F1 clarifies that, with the changes in what counts, the effect is roughly neutral. Formula1.com · Explained: what is the F1 cost cap and why has it gone up?
- The separate capital-expenditure limit (36 million over four years) was scrapped and its annual depreciation now counts inside the cap. Formula1.com · Explained: what is the F1 cost cap and why has it gone up?
- Car parts, running costs, most staff, spares and transport count; drivers' and the three best-paid employees' salaries, travel, marketing, property, legal costs and entry fees are left out. The engine limit rises to 190 million. Crash.net · F1 cost cap: what is it and how much can teams spend?
Sources checked on 18 October 2026. Valid for: 2026. The explanations are popular-level: for the exact rules, check the FIA sporting regulations.