Cost Per Mile Calculator
Works out what a mile actually costs you, not just the fuel. Add your annual fixed costs and the figure usually doubles — which is the number you want when comparing driving against alternatives, or charging for mileage.
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
The formula
cost per mile = (annual fuel + annual fixed costs) ÷ annual distance
Fixed costs are spread across the distance you actually drive, which is why the same car costs far more per mile for a low-mileage driver than a high-mileage one.
What to watch out for
Fuel is the smaller half of motoring costs for most people:
- Depreciation is usually the largest single cost, and it is invisible because you never write a cheque for it. A car losing $3,000 a year over 12,000 miles is 25 cents a mile before any fuel.
- Fixed costs reward mileage. Insurance and depreciation barely change whether you drive 5,000 or 15,000 miles, so the per-mile figure falls sharply as you drive more.
- This is why mileage reimbursement rates are what they are. Official rates cover fuel plus wear, servicing, tyres and depreciation — which is why they look generous next to a fuel-only calculation.
Frequently Asked Questions
What is the true cost per mile to drive?
For a typical car it lands somewhere around double the fuel cost once insurance, tax, servicing, tyres and depreciation are included. Enter your fixed costs to get your own figure rather than an average.
What should I include in fixed costs?
Insurance, road tax or registration, servicing, tyres, MOT or inspection, breakdown cover, and depreciation. Depreciation is the one people leave out and the one that usually dominates.
Why does cost per mile drop when I drive more?
Because the fixed costs are divided by more miles. Doubling your annual mileage does not double your insurance, so the per-mile share of it halves.
How do I work out depreciation?
Take what the car is worth now, subtract what you expect it to be worth in a year, and use the difference. Over a longer hold, divide the total drop by the years.