Cost Per Mile Calculator
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Enter what your car costs you in a year and how far you drive. See your true cost per mile and per month — the number that settles "should I keep this car?" Everything runs in your browser; nothing is saved or sent.
SteerLog builds this number from your real logged entries — each fill-up, service, and expense, on a chart over time.
Get SteerLogHow to calculate cost per mile
The formula is one line:
Cost per mile = total annual cost of the car ÷ miles driven that year.
- Add up a year of costs. Fuel, insurance, maintenance and repairs, registration and fees. For the full picture, add depreciation or loan interest.
- Divide by annual miles. Say $4,600 in running costs over 12,000 miles: $4,600 ÷ 12,000 = $0.38 per mile.
- Read it against a benchmark. A paid-off used car typically runs $0.25–$0.45 per mile out of pocket; AAA puts the all-in average for a new car at about $0.82 per mile.
Benchmarks to compare against
| Benchmark | Cost per mile | What it includes |
|---|---|---|
| Paid-off used car, typical | $0.25–$0.45 | Out-of-pocket running costs only — no depreciation |
| IRS standard mileage rate (2025) | $0.70 | The IRS's flat per-mile allowance for business driving |
| AAA average, new vehicle (2024) | ≈ $0.82 | All-in: depreciation, finance, fuel, insurance, maintenance — ~$12,300/yr at 15,000 mi/yr |
| AAA pickup truck, new (2024) | ≈ $0.90+ | Same all-in method; trucks sit at the expensive end |
Sources: AAA "Your Driving Costs" 2024 study; IRS standard mileage rate for 2025. Rounded — treat these as reference points, not quotes.
Why the number is worth knowing
Cost per mile is the fair way to weigh choices that look nothing alike:
- Keep or replace? Say your old car runs $0.40/mile with repairs. A new car at $0.80/mile all-in has to be a lot more reliable to break even.
- Drive or fly? A 600-mile round trip at $0.40/mile is $240 of car — suddenly the flight math changes.
- Is the commute worth it? A job 20 miles farther away costs about 40 × your cost per mile, every working day.
The catch: the number is only as good as your records. A year of logged fill-ups and services gives you a real figure; a guess gives you a guess.
Cost per mile questions, answered
How do you calculate cost per mile?
Divide your total annual car costs by the miles you drove that year. Include fuel, insurance, maintenance, repairs, and fees; add depreciation or loan interest for the full picture. Example: $4,600 in costs over 12,000 miles is $0.38 per mile.
What is the average cost per mile to drive a car?
AAA's "Your Driving Costs" study puts the all-in average for a new car at roughly $0.82 per mile. That's about $12,300 a year at 15,000 miles, with depreciation and financing. A paid-off used car costs far less in cash, most often $0.25–$0.45 per mile.
Why is my cost per mile different from the IRS rate?
The IRS standard mileage rate ($0.70 for 2025) is one flat rate for all. It is built from national averages for a newer car, with depreciation. Your real number depends on your car, insurance, fuel prices, and miles. A high-mileage, paid-off car most often comes in well under the IRS rate.
What costs are included in cost per mile?
Running costs: fuel, insurance, maintenance, repairs, tires, registration, and fees. Ownership costs: depreciation and loan interest, which are the biggest expense on newer cars — often 35–40% of the total. Decide which question you're asking: "what does driving cost me in cash?" uses running costs; "what does this car truly cost?" includes everything.
Does driving more lower my cost per mile?
Most often, yes. Insurance, registration, and depreciation are mostly fixed. Spread them over more miles and the per-mile figure drops, even as total spend goes up. That's why a driver who does 25,000 miles a year to work can pay less per mile than a weekend driver in the same car.
Guessing the maintenance number?
Most people know their insurance bill. Few know what repairs cost them last year. SteerLog logs each service, fill-up, and expense as it happens. Then it charts monthly spend and cost per mile from your real history. No account, no subscription. See how SteerLog works.