Cost per mile rolls every expense — fuel, maintenance, insurance, depreciation — into one rate. Total annual cost divided by annual miles is the number that prices a trip or a route.
The example
$9,000 cost, 15,000 miles.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Annual cost | 9000 |
| 3 | Annual miles | 15000 → $0.60 |
The formula
The formula:
How it works
How it works:
- Sum all annual costs: fuel, maintenance, tires, insurance, depreciation, registration.
- Divide by annual miles for the all-in cost per mile.
- Fuel-only cost per mile =
fuel_price / MPG— the variable piece. - Use it to price routes, compare vehicles, or set mileage charge-outs.
Fixed vs variable per mile. Insurance and depreciation are largely fixed — their per-mile cost falls as you drive more, while fuel and maintenance stay roughly constant per mile. Splitting the two explains why a low-mileage vehicle has a high cost per mile, and helps decide whether driving more or less saves money.
Try it: interactive demo
Total annual cost and annual miles.
Variations
Fuel cost per mile
Variable only:
Trip cost
Per route:
By category
Split it:
Pitfalls & errors
Include depreciation. The biggest hidden cost — don’t omit it.
Same period. Match annual cost to annual miles.
Zero miles. No miles gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate cost per mile in Excel?
How do I get fuel cost per mile?
Why is my cost per mile high?
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