← Guides · November 12, 2026
Cost Per Mile of Driving: How to Calculate It and What to Do With It
Cost per mile turns the whole cost of a car into one number you can compare. It tells you what each mile of driving really costs, not only the fuel.
The formula
Cost per mile = total yearly cost of the car ÷ miles driven per year
Total yearly cost is depreciation, interest, fuel, insurance, maintenance and fees, divided by the years you own the car.
A worked example
Take the car from the total cost of ownership guide, but paid in cash:
- Depreciation: $15,000 over 5 years = $3,000 per year
- Fuel: 12,000 ÷ 30 × $3.50 = $1,400 per year
- Insurance: $1,800
- Maintenance: $900
- Fees: $300
Total: $7,400 per year. Divide by 12,000 miles: $0.62 per mile. Notice that fuel alone is only about $0.12 per mile. The other $0.50 is easy to overlook.
Why it changes with the miles you drive
Some costs are fixed no matter how much you drive: insurance, fees, and much of depreciation. Others grow with the miles: fuel and maintenance. So driving more makes each mile cheaper, because the fixed costs are shared across more miles. Driving very little can make each mile expensive.
| Miles per year | Cost per mile (same car) |
|---|---|
| 6,000 | about $1.04 |
| 12,000 | about $0.62 |
| 18,000 | about $0.48 |
These rows assume fuel and maintenance scale with the miles and the other costs stay fixed. Real life is messier, since high mileage also lowers resale value.
Ways to use cost per mile
- Compare two cars: the cheaper one per mile is the better deal for the miles you actually drive.
- Decide how to travel: compare the car’s full cost per mile against a train, ride service or rental for a specific trip.
- Check business mileage: tax authorities often publish a standard mileage rate set each year. Check the current one with your tax authority, and note it may be higher or lower than your true cost.
- Test a commute: multiply cost per mile by your daily distance to see what commuting costs.
Use the calculator to get yours.
Numbers are illustrative. This is general information, not tax or financial advice.
More guides
- Car Depreciation Explained: How Much Value You Lose and How to Estimate It
- Car Maintenance and Insurance Budget: What to Set Aside Each Year
- Financing vs Paying Cash for a Car: What the Interest Really Costs
- Fuel Cost and MPG: How Much Does Fuel Economy Really Save?
- How Long Should You Keep a Car? A Cost-Per-Month View
Written by the Wheelwise editorial team. Figures are illustrative and rules change, so check official sources. See how we write and update guides on the About.