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Cost Per Mile Calculator

Gas is only a fraction of what you pay to drive. Find your true cost per mile by factoring in insurance, maintenance, and depreciation.

Direct Answer

The true cost per mile is calculated by adding your annual fuel costs to all fixed costs (insurance, registration, depreciation) and dividing by your annual mileage.

Driving & Fuel

Fixed Costs

Depreciation

The value your car loses each year. Often the biggest hidden cost of ownership.

Total Cost of Ownership

Cost Per Mile

$0.67
True cost to drive 1 mile

Monthly Cost

$665
Total real cost per month

Annual Breakdown

Fuel Cost
$1680
Fixed Costs & Maintenance
$3300
Depreciation
$3000
Total Annual Cost$7980
Need a copy of these results?

Step by step

How to use this tool

  1. 1

    Enter your annual mileage. Use your odometer or trip logs to get a realistic number.

  2. 2

    Enter your vehicle's MPG and local gas price to calculate the fuel component.

  3. 3

    Add your annual insurance premium — check your last renewal letter for the exact amount.

  4. 4

    Estimate annual maintenance costs: oil changes, tires, brakes, and unexpected repairs. $1,000-$1,500 per year is typical for a car under 5 years old.

  5. 5

    Enter estimated annual depreciation. A rough method: subtract KBB trade-in value from what you paid, divided by the years you have owned the car.

  6. 6

    Review the cost per mile. If it is over $0.60, you are paying more than average — consider whether a newer, more fuel-efficient car would save money.

Decision context

What this calculator helps you decide

Use Cost Per Mile Calculator when you need a quick, structured answer before you spend money, approve work, prepare a trip, compare options, or share information with a buyer, seller, shop, lender, or insurer. Enter the inputs you already know, review the result, then use the assumptions and limits below to decide what to check next.

Inputs and outputs

Start with the inputs that most affect this decision: Annual Mileage, MPG & Gas Price, Insurance, Maintenance Budget, Depreciation. The output is meant to make the next step easier to compare, not to replace a written quote, inspection, policy document, loan disclosure, or local rule.

The main outputs are Cost Per Mile, Total Annual Cost, Monthly Cost. If one input is uncertain, change that value and compare the result again before treating a single estimate as final.

Best-use cases

This page is built around the search intent: calculate true cost of ownership per mile, cost per mile calculator, real car ownership cost. It is most useful when you want to narrow a decision, prepare better questions, or avoid missing a cost, risk, fitment issue, paperwork step, or ownership detail.

Keep the assumptions visible while using the result. If your vehicle, location, driving pattern, quote, loan, insurance policy, or listing situation is unusual, use this as a planning screen and verify the final decision with the relevant document, professional, or local requirement.

Real scenarios

Example calculations

3-Year-Old Compact Car

A 2023 Civic driven 12,000 miles/year with moderate maintenance.

Inputs

Annual Miles12,000
M P G33
Gas$3.50
Insurance$1,400
Maintenance$800
Depreciation$2,500

Results

Cost Per Mile$0.49
Annual Cost$5,972

High-Mileage Pickup Truck

A 2019 F-150 driven 20,000 miles/year.

Inputs

Annual Miles20,000
M P G20
Gas$3.75
Insurance$1,800
Maintenance$1,500
Depreciation$3,800

Results

Cost Per Mile$0.54
Annual Cost$10,850

Assumptions we made

  • Assumes depreciation is a realized cost if you plan to sell the car

Important limitations

  • Does not include auto loan interest or opportunity cost of capital

Methodology

How the estimate works

Inputs, outputs, and calculation logic.

Logic

Sums annual fuel costs with annualized fixed costs and depreciation, then divides by total miles driven.

Inputs

  • Annual Mileage
  • MPG & Gas Price
  • Insurance
  • Maintenance Budget
  • Depreciation

Outputs

  • Cost Per Mile
  • Total Annual Cost
  • Monthly Cost

FAQ

Frequently asked questions

What is a good cost per mile for a car?

The AAA average in 2025 was about $0.51/mile for a midsize sedan and $0.72/mile for a pickup truck. If your result is above these numbers, look at which cost category is highest and address that first.

Should I include depreciation?

Yes, if you plan to sell or trade in the car eventually. Depreciation is often the single largest ownership cost but it is invisible because you do not write a check for it each month.

Why is my cost per mile so different from the IRS rate?

The IRS standard mileage rate ($0.725 for 2026) is a reimbursement benchmark, not a cost measure. Your real cost depends on your specific car, insurance, driving habits, and local prices.

How do I estimate maintenance costs?

For cars under 5 years old, $800-$1,200 per year is a reasonable estimate. For cars over 8 years or over 100K miles, budget $1,500-$2,500 to account for larger repairs.

Related tools

Continue with the next estimate

Fuel Cost Calculator

Calculate gas cost for a trip, a commute, or your recurring weekly driving pattern.

Mileage Reimbursement Calculator

Estimate business mileage reimbursement using a custom rate or a yearly preset.

Maintenance Budget Planner

Calculate how much you should save monthly for routine car maintenance and an unexpected repair reserve.