Cost Per Mile Calculator
Add up gas, insurance, registration, repairs, tires, and depreciation to find your true cost per mile — then compare it to the 2026 IRS standard mileage rate of 76¢.
Track the real cost of every mile you drive.
How US drivers use cost per mile
Your cost per mile depends on the price of gas, how many miles you drive a year, your insurance premium, repairs, tire wear, and how much depreciation is spread across each mile.
Once you know your real number, you can compare it to the 2026 IRS standard mileage rate of 76 cents per mile — the figure the IRS lets self-employed drivers deduct — or to a mileage reimbursement your employer pays.
This page is built for US drivers: dollars, gallons and miles, full-coverage auto insurance, state-by-state registration and gas-price differences, and the two IRS methods for business driving (standard mileage vs. actual expenses).
Treat the result as an estimate. Before you claim a deduction or negotiate reimbursement, check IRS Publication 463, your state DMV, or a qualified tax professional.
Estimates only. 2026 IRS rates.
Select the question that matches your situation.
Your cost per mile is the total annual running cost divided by miles driven. It puts all fixed and variable costs on a per-distance basis so you can compare vehicles, assess work deductions, and understand the true cost of each trip.
Insurance, registration, and depreciation are fixed — they cost the same whether you drive 5,000 or 30,000 miles. Gas and tires are variable. High-mileage drivers have a lower cost per mile because fixed costs are spread further.
The IRS standard mileage rate is set to roughly cover an average car’s running costs. If your actual cost is below 76¢/mile, the standard mileage rate is the more generous deduction. If it’s above, the actual expense method may give a bigger business deduction.
For new vehicles, depreciation is often the single largest cost component — easily $3,000–$8,000/yr for a typical new car. Excluding it dramatically understates the true cost per mile.
The IRS lets you deduct business driving two ways. The right choice depends on your business-use percentage and total annual costs. (Most W-2 employees can no longer deduct unreimbursed mileage — this mainly helps the self-employed.)
76¢/mile (from 1 July 2026) for every business mile — there is no mileage cap. You just need a log of your business miles. Simple, and it bundles gas, insurance, repairs, and depreciation into one rate.
Deduct the business-use percentage of every real cost (gas, insurance, repairs, tires, plus depreciation or lease payments). You keep receipts. Better when your vehicle is expensive to run or business use is high.
Switch to Standard mode, enter your business-use percentage, and the calculator shows which method gives the larger deduction. If you own the car, elect the standard rate in year one to keep the option to switch later; a leased car must use one method for the whole lease.
EVs have dramatically lower fuel costs but higher purchase prices. The per-mile comparison depends heavily on your electricity rate, charging habits, and how long you keep the vehicle.
At about 0.30 kWh/mile and 17¢/kWh, home charging costs roughly 5¢/mile. A gas car getting 25 mpg on $3.30/gallon gas costs about 13¢/mile. That’s a fuel saving near $1,200/yr at 15,000 miles — more if you drive more or gas prices rise.
EV insurance often runs 10–20% higher than an equivalent gas car (pricier repairs). Registration is similar, though some states add an annual EV fee to replace lost gas-tax revenue. Maintenance is roughly 40–50% cheaper — no oil changes and less brake wear.
The IRS standard mileage rate (76¢/mile) applies to EVs exactly like gas cars — you don’t deduct electricity separately. If you use the actual expense method instead, you can deduct the business share of charging, insurance, and depreciation.
The biggest levers on cost per mile are fuel efficiency, insurance shopping, and servicing choices.
Going from 22 to 28 mpg on $3.30/gallon gas saves about $480/yr at 15,000 miles. Proper tire pressure, smooth driving, and removing roof racks all improve mpg 5–15%.
Shop your policy every year — premiums vary 30–60% between carriers for identical coverage. Raising your deductible, bundling with home/renters, or enrolling in a safe-driver telematics program can cut the premium significantly.
Fixed costs (insurance, registration) cost the same no matter how far you drive. Cutting unnecessary trips saves on gas and tires without changing those fixed costs — and can qualify you for a low-mileage insurance discount.
Methodology — all cost components and what to include
What to include
True cost per mile includes all fixed and variable costs: gas, insurance, registration and fees, tires, service and repairs, parking and tolls, and depreciation. Omitting depreciation (the loss in vehicle value) significantly understates the real cost — for a typical new car depreciating $4,000/yr at 15,000 miles, that alone adds 27¢/mile.
Typical cost ranges (2026)
| Vehicle type | Est. cost per mile |
|---|---|
| Compact sedan (e.g. Corolla) | 45–60¢/mile |
| Mid-size sedan (e.g. Camry) | 55–70¢/mile |
| SUV (e.g. RAV4) | 60–85¢/mile |
| Electric vehicle (e.g. Tesla Model 3) | 40–60¢/mile |
| Full-size pickup (e.g. Ford F-150) | 70–100¢/mile |
IRS 76¢/mile rate — how to use it and when the actual expense method is better
Standard mileage rate
The IRS standard mileage rate for 2026 is 76 cents per business mile (effective July 1, 2026; 72.5¢ January–June). There is no cap on the number of business miles you can deduct — you multiply your business miles by the rate. You need a mileage log showing the date, purpose, and distance of each business trip, but no receipts for individual costs. The medical/moving rate is 20.5¢/mile and the charitable rate is 14¢/mile.
Actual expense method
The actual expense method lets you deduct the business-use percentage of every real cost — gas, oil, insurance, registration, repairs, tires, and either depreciation (for an owned car) or lease payments. You keep receipts and track your business-use share. This method usually wins when the vehicle is expensive to run, business use is high, or you have big first-year depreciation. If you own the car, you must elect the standard mileage rate in the first year of business use to keep the option to switch methods later; a leased car must stick with one method for the entire lease.
Business rate history
| Year | IRS business rate |
|---|---|
| 2026 | 72.5¢ (Jan–Jun) / 76¢ (from 1 Jul) |
| 2025 | 70¢/mile |
| 2024 | 67¢/mile |
| 2023 | 65.5¢/mile |
When does an EV become cheaper to run than a gas car?
Fuel cost per mile
An EV averaging 0.30 kWh/mile at 17¢/kWh costs about 5¢/mile to charge at home. A gas car getting 25 mpg on $3.30/gallon gas costs about 13¢/mile. The annual fuel saving at 15,000 miles is roughly $1,200; at 30,000 miles it’s about $2,400. Public DC fast charging costs more than home charging and narrows the gap.
What tips the math
EVs cost more up front, so depreciation and financing can offset the fuel savings in the early years — the break-even usually arrives faster for high-mileage drivers and where electricity is cheap relative to gas. Maintenance runs lower (no oil changes, less brake wear), while insurance and tires can run a little higher. Some states charge an extra annual EV registration fee to make up for gas taxes the car doesn’t pay.
Practical ways to lower your vehicle running costs
Fuel efficiency improvements
- Keep tires inflated to the recommended pressure (improves mpg 2–3%)
- Remove roof racks and cargo boxes when not in use (save 5–15% at highway speeds)
- Use cruise control on the highway
- Stay on the maintenance schedule — a dirty air filter can cut mpg ~10%
- Use the octane grade your owner’s manual specifies (premium in a regular engine doesn’t help)
Insurance savings
- Shop quotes every year — switching carriers saves 20–40% in many cases
- Raising your deductible lowers the premium significantly
- Bundle auto with home or renters insurance for a multi-policy discount
- Ask about safe-driver, telematics, and low-mileage discounts
Frequently askedFrequently asked questions
What is the IRS standard mileage rate for 2026?
The 2026 IRS standard mileage rate for business use is 76 cents per mile, effective July 1, 2026 (72.5¢ applied January–June; 70 cents in 2025). The medical and moving rate is 20.5 cents and the charitable rate is 14 cents. There is no cap on the number of business miles you can claim.
How do I calculate my cost per mile?
Add all annual vehicle costs (gas, insurance, registration, repairs, tires, parking, tolls, and depreciation if included), then divide by total miles driven. Example: $9,000 total costs ÷ 15,000 miles = 60 cents per mile. Use the calculator above to break costs down by category.
Should I use the standard mileage rate or the actual expense method?
The standard mileage rate (76¢/mile) is simpler — you just keep a mileage log and there’s no cap on business miles. The actual expense method lets you deduct the business-use share of every real cost (gas, insurance, repairs, depreciation), which can win for expensive vehicles or heavy business use. Self-employed drivers can use either; most W-2 employees can no longer deduct unreimbursed mileage. This calculator compares both when you enter your business-use percentage in Standard mode.
What is the average cost per mile for a car in the US?
The average cost per mile for a typical mid-size car in the US is roughly 55–75 cents when all costs including depreciation are counted. Without depreciation the figure drops to around 35–50 cents. The IRS standard mileage rate (76 cents from July 2026) sits in the middle of most real-world averages.
Where these figures come from
The mileage rate on this page comes straight from the IRS. Fuel and vehicle-cost figures are drawn from the US Energy Information Administration (gas and electricity prices) and the Bureau of Labor Statistics (motor-fuel and vehicle CPI).
- IRS standard mileage rate — IRS — Standard mileage rates (76¢/mile business, from 1 Jul 2026).
- Deducting car expenses — IRS Publication 463 — Travel, Gift, and Car Expenses.
- Gas & electricity prices — US Energy Information Administration — Fuel prices.
- Vehicle & fuel CPI — Bureau of Labor Statistics — Consumer Price Index.
Last checked: April 2026. The IRS publishes the standard mileage rate for the coming year each December; we review this page against it when the new notice is released.