Vehicle cost per mile calculator
Work out the cost per mile to reimburse someone who uses their own car or motorcycle for work: fuel plus wear and tear, maintenance and depreciation.
How to useCost per mile for reimbursement
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Vehicle cost per mile calculator: what it is for
Enter the fuel price, the vehicle's fuel economy and a wear-and-tear allowance for tires, maintenance and depreciation. The calculator shows the cost per mile and the total reimbursement for the miles in the period, adding tolls and parking.
How to use
- Type the fuel price and fuel economy.
- Set the wear-and-tear allowance.
- Enter the miles and see the reimbursement.
When to use it
- Setting a company reimbursement policy.
- Charging for service calls and deliveries.
- Checking the amount your employer pays.
Frequently asked questions
How do companies calculate reimbursement?
The simplest way is the price of fuel divided by the vehicle's fuel economy. Many companies add an allowance for tires, maintenance and depreciation, which usually raises the cost per mile by 30% to 60%. In the US, many employers use the IRS standard mileage rate as a reference.
Is the reimbursement part of my salary?
Generally not. In many countries, reimbursement for business use of a personal vehicle, when documented and proportional to the use, is treated as an expense reimbursement and not as wages. Rules vary, so check the local regulations or your employer's policy.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 tools are free and run right in your browser.