Cost Per Mile Calculator: What Each Mile of Driving Costs

Work out what each mile of driving actually costs, once fuel, insurance, maintenance, and depreciation are all counted.

✓ Editorially reviewed Updated May 17, 2026 By Ugo Candido
Amount & Quantity
$
Fuel, insurance, maintenance, and depreciation for the period.
Miles driven over the same period as the costs.
Your estimate $—

Adjust the inputs and select Calculate for a full breakdown.

Compare Common Scenarios

How the numbers shift across typical situations for this calculator:

ScenarioCost per mile
$9,600 / 12,000 mi$0.80
$6,000 / 8,000 mi$0.75
$14,000 / 20,000 mi$0.70
$4,500 / 5,000 mi$0.90

How This Calculator Works

Enter your total vehicle costs for a period and the miles you drove in that same period. The calculator divides one by the other to give the cost per mile — the true running cost that fuel alone badly understates.

The Formula

Cost per Unit

Unit Cost = Total Amount / Quantity

Total Amount is the full cost or price, Quantity is the number of units it covers

Worked Example

A vehicle costing $9,600 a year to run and driven 12,000 miles costs $0.80 per mile. Drivers usually think of fuel alone, but insurance, maintenance, and depreciation often make up most of that figure.

Key Insight

Depreciation, not fuel, is typically the largest cost of driving. That is why cost per mile is the honest number for deciding whether to drive, claim mileage, or take an alternative.

Frequently Asked Questions

What costs should I include?

Include fuel, insurance, maintenance and repairs, registration, and depreciation. Leaving out depreciation badly understates the real cost of each mile.

Why is cost per mile higher than fuel cost?

Fuel is only one part. Insurance, maintenance, and especially depreciation often add more per mile than the fuel itself.

How do I estimate depreciation?

Take the drop in the vehicle's value over the period — its value at the start minus its value at the end — and include that figure in total costs.

What is cost per mile used for?

It helps decide whether to drive or use an alternative, what to charge for mileage, and the true cost of a long commute or trip.

Does cost per mile fall with more driving?

Per mile, fixed costs like insurance spread over more miles, so a higher annual mileage usually lowers the cost per mile somewhat.

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Methodology & Review

Ugo Candido ✓ Editor
Wrote this calculator and is responsible for its methodology and review.

Cost per mile is total vehicle cost divided by miles driven. Total cost should include fuel, insurance, maintenance, and depreciation over the same period as the mileage.

Written by Ugo Candido · Last updated May 17, 2026.