How it works
How to calculate it
The calculator applies the values you enter to this formula:
Cost per mile = annual fuel, insurance, maintenance, registration, and depreciation ÷ annual miles.
How to use this calculator
- Choose a consistent annual period.
- Add fuel, insurance, maintenance, registration, and depreciation.
- Divide by miles driven in the same period.
Worked example
A vehicle costing $8,150 per year and driven 12,000 miles costs about $0.68 per mile.
Important assumptions
- Financing interest and parking are excluded unless included in another field.
- Depreciation is the estimated annual loss in vehicle value.
- Unexpected repairs can make actual cost higher.
Common mistakes to avoid
- Leaving out depreciation.
- Mixing monthly and annual costs.
- Confusing an IRS mileage rate with actual vehicle cost.
Method reviewed June 10, 2026. Prices and rates are user-provided defaults and should be replaced with local values.