Your True Cost Per Mile Is Probably Higher Than You Think
Most drivers think of fuel as their main driving cost, but the full picture is very different. Depreciation โ the value your car loses each year โ is often the biggest expense. Add insurance, maintenance, and fuel together, and the true cost per mile tells you exactly what it costs to turn the key. This is also useful for expense reimbursement calculations or comparing car ownership to rideshare and public transit alternatives.
This calculator divides annual depreciation (purchase price ร depreciation rate), fuel cost (miles รท mpg ร price per gallon), insurance, and maintenance by your annual mileage to show each component's per-mile cost.
Frequently Asked Questions
For 2024, the IRS standard mileage rate for business use is 67 cents per mile, which is designed to cover fuel, depreciation, insurance, and maintenance costs for a typical vehicle.
Drive more miles per year to spread fixed costs, choose a fuel-efficient vehicle, maintain your car regularly to avoid costly repairs, and shop around for competitive insurance rates.