Every time you turn the key and drive, you are spending money—not just on gas, but on wear, insurance, and the slow decline in your vehicle's value. Yet most drivers only think about the price at the pump. A cost per mile calculator brings all of those expenses into a single, easy-to-understand number so you can make smarter decisions about commuting, road trips, rideshare driving, and business mileage deductions.
According to AAA's annual driving cost study, the average American spends roughly 67 cents per mile to own and operate a new vehicle. That figure includes fuel, maintenance, insurance, license fees, depreciation, and financing. Our cost per mile calculator above lets you plug in your own numbers to see exactly where you stand.
What Is a Cost Per Mile Calculator?
A cost per mile calculator is a tool that divides your driving-related expenses by the number of miles you drive, producing a per-mile cost figure. At its simplest, it calculates fuel cost per mile—how much you pay in gas or diesel for every mile traveled. When you add maintenance, insurance, and depreciation, it produces a total cost per mile that reflects the true expense of vehicle ownership.
Who uses a cost per mile calculator?
- Daily commuters tracking how much their drive to work really costs each day, week, and year.
- Rideshare and delivery drivers who need to know whether their earnings exceed their vehicle expenses per mile.
- Fleet managers monitoring per-vehicle costs to optimize routing and replacement schedules.
- Business travelers comparing actual cost per mile against the IRS standard mileage rate for tax deductions.
- Car shoppers evaluating the long-term operating cost of one vehicle versus another before purchasing.
The Formula Behind Your Cost Per Mile
The cost per mile calculation has two layers—fuel only and total operating cost.
Fuel Cost Per Mile
This tells you how much fuel alone costs for every mile driven. It is the quickest way to compare the running cost of two vehicles or to estimate trip fuel expenses.
Total Cost Per Mile
Total cost per mile gives the complete picture. It answers the question: “How much does it actually cost me every time I drive one mile?” This number is essential for business mileage tracking, rideshare profitability analysis, and vehicle purchase comparisons.
For metric users, the fuel cost per kilometer uses L/100km:
Worked Examples With Real Numbers
Example 1: Average Sedan
A 2023 mid-size sedan averaging 30 MPG, gas at $3.40/gallon, driven 12,000 miles/year with $700 annual maintenance, $1,200 insurance, and $2,800 depreciation:
Example 2: Full-Size SUV
A full-size SUV averaging 20 MPG, gas at $3.60/gallon, driven 15,000 miles/year with $1,000 maintenance, $1,800 insurance, and $4,500 depreciation:
Example 3: Rideshare Driver
A rideshare driver in a hybrid averaging 45 MPG, gas at $3.50/gallon, driving 30,000 miles/year with $1,200 maintenance, $2,000 insurance, and $3,500 depreciation:
Notice how high annual mileage lowers the total cost per mile by spreading fixed costs (insurance, depreciation) over more miles. This is a key insight for rideshare drivers and frequent commuters.
Fuel Cost Per Mile vs Total Cost Per Mile
Many drivers only consider fuel when thinking about cost per mile, but fuel typically represents just 20–35% of total vehicle operating costs. The rest comes from:
- Depreciation (35–45%): The largest single cost for most vehicles. A new car loses roughly 20% of its value in year one and around 15% each subsequent year.
- Insurance (15–20%): Varies widely by coverage level, driver age, and location, but averages $1,500–$2,200/year nationally.
- Maintenance & repairs (10–15%): Oil changes, tires, brakes, and unexpected repairs. Older vehicles typically have higher maintenance costs but lower depreciation.
Cost Per Mile by Vehicle Type
The table below shows typical cost-per-mile ranges based on AAA's 2024 driving cost data and national fuel price averages. Figures assume 15,000 miles/year and include fuel, maintenance, insurance, and depreciation.
| Vehicle Type | Avg MPG | Fuel Cost/Mile | Total Cost/Mile | Annual Total Cost |
|---|---|---|---|---|
| Compact Sedan | 33 MPG | $0.11 | $0.47 | $7,050 |
| Mid-Size Sedan | 30 MPG | $0.12 | $0.52 | $7,800 |
| Mid-Size SUV | 26 MPG | $0.14 | $0.62 | $9,300 |
| Full-Size Pickup | 20 MPG | $0.18 | $0.72 | $10,800 |
| Hybrid | 48 MPG | $0.07 | $0.44 | $6,600 |
| Electric Vehicle | N/A (3.5 mi/kWh) | $0.04 | $0.49 | $7,350 |
EVs have the lowest fuel cost per mile but higher purchase prices and insurance can raise their total cost per mile. Hybrids offer the best overall balance for most drivers. Use the calculator above with your own figures for an accurate comparison.
How to Reduce Your Cost Per Mile
- Improve your fuel economy. Proper tire inflation (saves up to 3%), gentle acceleration, and steady highway speeds (55–60 MPH sweet spot) all boost MPG. Use our gas mileage calculator to track improvements.
- Stay on top of maintenance. Regular oil changes, clean air filters, and timely repairs prevent small issues from becoming expensive problems. A faulty oxygen sensor alone can reduce MPG by up to 40%.
- Choose the right vehicle. If you drive 20,000+ miles/year, the fuel savings from a 40 MPG vehicle versus a 25 MPG vehicle can exceed $1,200/year. Compare with our Fuel Savings Calculator.
- Drive more miles on fixed costs. Insurance and depreciation cost the same whether you drive 10,000 or 20,000 miles. If your fixed costs are high, consolidating trips and driving more efficiently lowers your cost per mile.
- Shop for competitive insurance. Getting quotes from multiple insurers every 1–2 years can save $200–$500 annually, directly reducing your cost per mile.
- Buy used instead of new. A 2–3 year old vehicle avoids the steepest depreciation curve while still offering modern safety and efficiency features.
IRS Standard Mileage Rate Comparison
The IRS standard mileage rate for 2024 is 67 cents per mile for business use. This rate is meant to approximate the average total cost of operating a vehicle, including fuel, maintenance, insurance, depreciation, and registration. For 2025, the IRS rate increased to 70 cents per mile.
How does the IRS rate compare to actual costs?
- Compact sedan driven 15,000 miles/year: Actual total cost is roughly $0.47/mile—the IRS rate overestimates by $0.20/mile, meaning you benefit from using the standard deduction.
- Full-size pickup driven 15,000 miles/year: Actual total cost is roughly $0.72/mile—the IRS rate underestimates by $0.05/mile. You might benefit from tracking actual expenses instead.
- Rideshare driver in a hybrid driven 30,000 miles/year: Actual total cost is roughly $0.30/mile—the IRS rate of $0.67 provides a significant tax advantage.
Frequently Asked Questions
How do I calculate my cost per mile?
For fuel cost per mile, divide the gas price per gallon by your vehicle's MPG. For example, $3.50 ÷ 25 MPG = $0.14 per mile. For total cost per mile, add annual fuel, maintenance, insurance, and depreciation costs together and divide by your annual miles driven. Use our cost per mile calculator above for instant results.
What is a good cost per mile for a car?
For fuel cost alone, anything under $0.12/mile is efficient (roughly 30+ MPG at current gas prices). For total operating cost, $0.45–$0.55/mile is considered good for a sedan. SUVs and trucks typically range from $0.60–$0.75/mile. The national average across all vehicle types is approximately $0.67/mile according to AAA.
What is the IRS mileage rate for 2024?
The IRS standard mileage rate for 2024 is 67 cents per mile for business use, 21 cents per mile for medical/moving purposes (military only), and 14 cents per mile for charitable driving. For 2025, the business rate increased to 70 cents per mile. These rates are updated annually based on driving cost studies.
Does driving more miles lower my cost per mile?
Yes, for total cost per mile. Fixed costs like insurance and depreciation stay roughly the same regardless of mileage, so driving more miles spreads those costs over a larger number. However, fuel cost per mile stays constant, and higher mileage increases maintenance costs. There is a sweet spot—typically 12,000–20,000 miles/year—where total cost per mile is optimized.
How do I calculate cost per mile for an electric car?
For an EV, replace fuel cost with electricity cost: divide your electricity rate per kWh by your vehicle's efficiency in miles per kWh. For example, at $0.14/kWh and 3.5 mi/kWh, your energy cost is $0.04/mile. Add insurance, maintenance, and depreciation for total cost per mile. Use our Gas vs Electric Calculator for a full comparison.
Is cost per mile the same as cost per gallon?
No. Cost per gallon is the price you pay at the pump. Cost per mile tells you how much each mile of driving costs in fuel. They are related by your vehicle's MPG: Cost Per Mile = Price Per Gallon ÷ MPG. A vehicle with better fuel economy has a lower cost per mile even at the same gas price.
Compare Fuel Costs Between Two Vehicles
See how much you could save per mile by switching to a more fuel-efficient vehicle.
Try Our Fuel Savings Calculator