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Cost Cap
Regulations
A Cost Cap is a financial restriction that limits how much money racing teams can spend on developing and operating their cars during a season.
Introduced to Formula 1 in 2021, the Cost Cap creates a more level playing field by preventing wealthy teams from outspending smaller ones. It covers expenses related to car performance including components, most personnel salaries, and operational costs.
Certain expenses fall outside the cap, such as driver salaries and marketing costs. Teams exceeding the limit face penalties ranging from fines to championship point deductions. For the 2023 F1 season, the Cost Cap was set at $135 million per team.