Cost Per Mile Calculator

Add up all vehicle expenses and divide by miles driven to find your true cost per mile. Essential for comparing vehicles, tracking business mileage deductions, and budgeting transportation costs accurately.

Calculator

Annual Miles Driven

Annual Fuel Cost ($)

Annual Insurance ($)

Annual Maintenance ($)

Annual Car Payment ($)

Other Annual Costs ($)

Cost/Mile

$0.76

Cost/Km

$0.47

Monthly Avg

$950

Annual Total

$11,400

How to Calculate Cost Per Mile

The formula: Cost Per Mile = Total Annual Vehicle Costs ÷ Annual Miles Driven. Include every expense: fuel, insurance, loan/lease payments, maintenance, registration, tolls, and parking.

For example, if you spend $11,400/year total and drive 15,000 miles, your cost per mile is $0.76. This is higher than most people expect because they only think about gas.

Average Cost Per Mile by Mileage

Annual Miles	Annual Cost	Cost/Mile
12,000	$8,400	$0.70
15,000	$9,750	$0.65
20,000	$12,000	$0.60
30,000	$16,500	$0.55

Worked Example

Your annual vehicle costs:

Fuel: $2,400 | Insurance: $1,500 | Maintenance: $800
Car payment: $5,400 | Registration & other: $500
Total: $10,600 | Miles driven: 14,000
Cost per mile: $10,600 ÷ 14,000 = $0.76/mile

Frequently Asked Questions

What is cost per mile?

Cost per mile is the total cost of operating a vehicle divided by the total miles driven. It includes fuel, insurance, depreciation, maintenance, and financing costs. The IRS standard mileage rate for 2024 is $0.67 per mile.

What costs should I include?

Include fuel, insurance premiums, loan or lease payments, maintenance and repairs, registration fees, depreciation, parking, and tolls. For a complete picture, include everything you spend on your vehicle annually.

What is a good cost per mile?

The average American spends $0.60-$0.80 per mile. Economy cars can achieve $0.35-$0.50/mile. Trucks and SUVs often cost $0.70-$1.00+/mile. Electric vehicles typically cost $0.20-$0.40/mile for energy alone.

How does mileage affect cost per mile?

Higher annual mileage reduces cost per mile because fixed costs (insurance, registration, depreciation) are spread over more miles. However, higher mileage increases maintenance frequency and accelerates depreciation.

Can I deduct cost per mile on taxes?

If you use your vehicle for business, you can deduct the IRS standard mileage rate ($0.67/mile in 2024) or actual expenses. Keep a mileage log. Commuting is not deductible, but trips between job sites, client meetings, and errands for business qualify.