How Formula 1's Budget Cap Rewired the Engineering Arms Race

· June 23, 2026 · 4 min read

What the numbers actually did over five years

The cap fell to 140 million dollars in 2022, then to 135 million dollars for 2023, where it stayed as a base figure through 2025, with small adjustments for inflation and an allowance of roughly 1.8 million dollars for every race beyond a 21-event calendar. With 24-race calendars in both 2024 and 2025, that added about 5.4 million dollars back into each team's allowance. For 2026, the figure jumped sharply to 215 million dollars, reflecting the cost of developing all-new cars and power units under next year's technical regulations rather than any loosening of the underlying principle.