Vehicle Cost Per Mile Calculator – What’s Your True Cost Per Mile?
Combine fuel, insurance, maintenance, and depreciation into a single all-in cost per mile driven.
How this calculator helps
Fuel is only part of what a vehicle actually costs to run. Insurance, maintenance, and depreciation often add up to more than fuel itself, but they are easy to overlook because they are paid less frequently. This calculator combines all four into a single cost-per-mile figure useful for comparing vehicles, deciding whether to keep or replace a car, or setting a personal mileage reimbursement rate.
Formula: Cost per mile = (annual fuel + annual insurance + annual maintenance + annual depreciation) ÷ annual miles driven.
Assumptions: Depreciation and maintenance are treated as yearly averages, which smooths out large one-time repairs or resale value swings. Loan or lease payments are financing costs and are intentionally excluded.
Worked example: Driving 12,000 miles a year with $1,800 in fuel, $1,400 in insurance, $900 in maintenance, and $2,500 in depreciation totals $6,600 per year, or about $0.55 per mile.
Below the result you'll also see a mileage sensitivity table, since driving more or fewer miles changes your cost per mile even if nothing else changes: insurance, maintenance, and depreciation are largely fixed yearly costs, so spreading them over more miles lowers your per-mile rate while fuel cost scales up with the extra driving. If you're reimbursed for mileage (for work or gig driving), you can also toggle on a comparison against your reimbursement rate to see whether you're coming out ahead or behind.
- Annual miles: Total miles driven in a typical year.
- Annual fuel cost: Total spent on gasoline, diesel, or EV charging for the year.
- Annual insurance: Yearly premium for the vehicle.
- Annual maintenance: Oil changes, tires, repairs, and routine service.
- Annual depreciation: Estimated loss in vehicle value over the year.
What the result means
Cost per mile gives you a single number that reflects everything a vehicle costs to operate, not just what you notice at the gas pump. It is a practical benchmark for comparing two vehicles, deciding whether high mileage justifies an upgrade, or setting a fair reimbursement rate for business or rideshare driving.
Because maintenance and depreciation are estimates, the result is most useful as a planning range rather than an exact figure. Try running the calculator with a conservative and an optimistic depreciation estimate to see how sensitive your true cost per mile is to that assumption, especially for older or higher-mileage vehicles.
Related calculators
Gas mileage cost calculator, EV charging cost calculator, and Car affordability help you evaluate driving costs and vehicle budgets together.
Frequently asked questions
- How do I estimate depreciation? Compare your vehicle's value now to its value a year ago using a trusted valuation guide, or use the difference between purchase price and expected trade-in value spread over your ownership period.
- Should I include loan payments? No, loan and lease payments are financing costs. Use the car affordability calculator to evaluate those separately.
- Why does cost per mile matter? It helps you compare vehicles fairly, decide whether to keep or replace a car, and set an accurate mileage rate for business or gig driving.
- How does this compare to the IRS standard mileage rate? The IRS rate is a national average used for tax deductions. Your personal cost per mile can be higher or lower depending on your specific vehicle and driving habits.
- Why does cost per mile change with annual mileage? Insurance, maintenance, and depreciation are largely fixed yearly costs. Driving more miles spreads those fixed costs over a larger base, lowering your per-mile rate, while fuel cost still rises with the extra distance.
- How is the reimbursement surplus calculated? It's your reimbursement rate minus your calculated cost per mile, multiplied by your annual miles. A positive number means the rate you're paid covers more than your actual driving cost.
Creator & reviewers
Creator persona
- Morgan HayesVehicle costs & travel estimates
Reviewer personas
- Casey RowanUnits, conversions & measurement
- Devon ShawFormula & assumptions review