Driving Cost Per Mile Calculator
Add up fuel, insurance, maintenance, depreciation and fees to find your true all-in cost to drive one mile.
How it works
Cost per mile = (fuel + insurance + maintenance + depreciation + fees) ÷ annual miles
Cost per mile turns every ownership expense into a single rate you can use for budgeting, reimbursements or deciding whether a trip is worth driving. Fuel is the cost drivers notice, but depreciation, insurance and maintenance usually add up to far more per mile. Because fixed costs like insurance are spread over the miles you drive, driving more lowers the per-mile figure while raising the total.
Worked example
With $1,800 fuel, $1,500 insurance, $800 maintenance, $3,000 depreciation and $1,000 in fees and interest, total yearly cost is $8,100. Over 12,000 miles that is $8,100 ÷ 12,000 = $0.675 per mile — and only about $0.15 of that is fuel.
Frequently asked questions
What is the average cost per mile to drive?
For a typical new car driven 12,000–15,000 miles a year, all-in costs often land around $0.60–$0.80 per mile once depreciation, insurance and maintenance are included. Fuel alone is usually only $0.10–$0.20 of that.
Why is my cost per mile so much higher than fuel?
Fuel is the visible cost, but depreciation, insurance, maintenance and financing are larger. These fixed and semi-fixed costs are spread across your miles, so total cost per mile is typically three to five times the fuel-only figure.
Does driving more reduce cost per mile?
Per mile, yes — fixed costs like insurance and depreciation get spread over more miles, lowering the rate. But your total annual cost still rises with fuel and wear, so more driving is cheaper per mile yet more expensive overall.
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Educational estimate only — real costs vary by lender, insurer, location and driving habits. Not financial advice.