Cost per mile turns a year of car bills into one comparable number. It's useful for budgeting, for deciding whether a long commute or a second car is worth it, and for checking whether a mileage reimbursement actually covers your costs.
How it's calculated
Cost per mile = total yearly cost ÷ miles driven per year.
The calculator splits your costs into two groups:
- Running costs rise with every mile: fuel, maintenance and tires.
- Fixed costs you pay whether you drive or not: insurance, registration, depreciation, loan interest and parking.
That split explains a common surprise: driving more lowers your cost per mile, because fixed costs are spread over more miles, even though your total spending goes up.
Where to find each number
- Fuel: your MPG and local gas price. The MPG calculator gives your real figure.
- Maintenance & repairs: last year's receipts, or a plan from the maintenance cost planner.
- Tires: price of a set divided by how many years they last.
- Depreciation: the value your car loses in a year. We don't publish car values; use your own estimate, or the depreciation estimator.
- Loan interest: your lender's yearly interest statement, or the car loan calculator.
Cost per mile vs mileage reimbursement
Employers and tax rules often use a standard per-mile rate for business driving. Comparing it with your own cost per mile shows whether the reimbursement covers your actual costs. For reimbursement math, see our sister site's mileage reimbursement calculator (opens in a new tab).
Frequently asked questions
What is a good cost per mile for a car?
There's no single good number: it depends on the car's value, fuel economy, insurance and how far you drive. Compare cars against each other using the same mileage.
Should I include depreciation?
Yes, if you want the true cost. Leave it out only if you want to know your cash running costs.
How do I lower my cost per mile?
Fixed costs dominate for most drivers, so the biggest levers are usually the car's price (depreciation), insurance and loan rate. Running costs fall with better fuel economy and on-time maintenance.
Can CarManager track this for me?
Yes. A free CarManager garage logs fuel and expenses for each car and works out your cost per mile from your own records.
Results are estimates from the numbers you enter and, where noted, EPA ratings. Not financial advice. Page updated .