At 23 MPG combined, the 2016 Volvo V60 AWD with the 2.5L 5-cylinder engine isn’t winning any fuel efficiency awards. It’s a number that shows the tradeoff buyers of this particular configuration accept: confident all-weather traction, a distinctive and charismatic engine, and the practical flexibility of a wagon, all in a uniquely Scandinavian package. This V60 isn’t trying to be frugal; it’s a capable and subtly stylish alternative to the mainstream.

City and highway performance

The EPA estimates for the 2016 Volvo V60 AWD 2.5L place city driving at 20 MPG and highway driving at 28 MPG. The city figure is arguably the more relevant one for many V60 owners. This isn’t a vehicle often purchased for long-haul highway cruising; it’s more likely to navigate urban landscapes, haul kids to school, or trek to weekend ski trips. The responsiveness of the turbocharged 5-cylinder is appreciated in stop-and-go traffic, even if it comes at a bit of a fuel penalty. The 28 MPG highway figure is achievable with a light foot, but expect it to drop if you’re frequently using the available power for passing or maintaining higher speeds, something the engine is more than willing to do.

Annual fuel cost

The EPA estimates the annual fuel cost for the 2016 Volvo V60 AWD 2.5L 5-cylinder at $1,900. This figure is based on driving 15,000 miles per year, with 55% of those miles driven in the city and 45% on the highway, and using the national average fuel price. Keep in mind this is just an estimate; your actual fuel costs will vary depending on your driving habits, the type of driving you do, and prevailing fuel prices in your area. Aggressive driving, frequent short trips in cold weather, and consistently using premium fuel (though it’s not required) will all inflate that $1,900 number.

Real-world expectations

While the EPA estimates provide a useful baseline, real-world fuel economy often differs. Many owners of the 2016 V60 AWD 2.5L report achieving figures slightly below the EPA’s combined estimate, often hovering around 21-22 MPG. This variance reflects the enthusiastic driving style this engine encourages and the impact of the all-wheel-drive system, which adds weight and consumes energy. However, drivers who prioritize smooth acceleration, anticipate traffic, and avoid prolonged idling can certainly get closer to the EPA’s numbers. The key is understanding that this is a performance-oriented engine and AWD system that responds directly to driving behavior.

How it compares

Compared to other wagons and small SUVs of the era, the 2016 Volvo V60 AWD 2.5L’s fuel economy is in the middle of the pack. A similarly equipped Audi allroad from the same year, with its 2.0T engine, achieves a slightly better 25 MPG combined. A BMW 328i xDrive wagon might see similar real-world numbers depending on driving style, even though it’s EPA rated slightly higher. However, many crossover SUVs offering similar cargo space, such as a Honda CR-V (29 MPG combined with AWD), deliver significantly better fuel economy, though they lack the V60’s distinctive wagon styling and turbocharged engine character. Even within the Volvo lineup, you’ll find better economy; see all Volvo fuel economy data to compare. The decision to choose the V60 2.5T AWD is often less about outright efficiency and more about a specific blend of performance, practicality, and understated luxury.

Tips to maximize efficiency

The 2.5L turbocharged 5-cylinder engine responds well to smooth inputs. Avoid aggressive acceleration and braking, as these actions consume a disproportionate amount of fuel in a turbocharged engine. Let the turbocharger spool up gradually, rather than demanding immediate boost.

Regularly check and maintain proper tire inflation. Underinflated tires increase rolling resistance, which negatively impacts fuel economy. Use a quality tire pressure gauge and inflate your tires to the recommended pressure listed on the sticker inside the driver’s side doorjamb.

Minimize idling. Modern engines do not require extended warm-up periods, even in cold weather. Excessively idling the engine burns fuel without moving the vehicle. If you anticipate stopping for more than a minute or two, turn off the engine.

Consider using the “Eco” mode, if equipped, to adjust throttle response and shift points for improved fuel economy. While it may slightly reduce driving enthusiasm, it can make a noticeable difference, especially in city driving. And explore V60 MPG across all years to see how newer powertrains improve fuel economy.

Reduce unnecessary weight inside the vehicle. Carrying around extra cargo increases the amount of energy required to accelerate and maintain speed. Remove any items you don’t need from the trunk and passenger compartment.