Vehicle cost per mile calculator
Work out what each mile costs you from fuel, maintenance, insurance and depreciation, then see whether actual expenses or the IRS standard rate gives you the bigger deduction.
Estimates only. Depreciation and car payments are approximated as even yearly costs. General information, not tax advice.
How it works
Fuel cost per mile is the gas price divided by your miles per gallon. Yearly maintenance, insurance and depreciation are divided by yearly miles. Added together they give your cost per mile, which is compared with the IRS standard rate.
Example: 25 MPG at $3.50 gas is $0.14 per mile in fuel. $1,500 of maintenance, $1,800 of insurance and $3,000 of depreciation over 20,000 miles adds $0.315, for $0.455 per mile in total.
Frequently asked questions
What counts toward cost per mile?
Fuel, oil changes, repairs, tires, insurance, registration and depreciation or car payments. Only the business share of those costs is deductible if you also use the car personally.
Standard mileage rate or actual expenses?
If the IRS rate ($0.725) is higher than your cost per mile, the standard rate usually gives the bigger deduction and needs less record keeping. Newer or thirsty vehicles can come out the other way. Rules limit switching methods, so confirm with a tax professional.
Why is my cost per mile higher than just gas?
Gas is usually only a third to half of what driving costs. Maintenance, insurance and depreciation are real costs even though they do not feel like it at the pump.
More free tools
- Profit calculator: Payout minus the IRS mileage deduction: what you actually kept.
- Hourly earnings: Gross and net dollars per hour online, after vehicle costs.
- Quarterly tax estimator: Estimate self-employment tax and how much to set aside each quarter.
- Weekly goal planner: How many hours you need to drive to hit a weekly income goal.
Related reading: taxes & expenses and earnings strategy.