Cost Per Mile Calculator

What is Cost Per Mile?

Cost per mile (or cost per kilometer) is the total cost of operating a vehicle divided by the distance driven. It includes all vehicle expenses: fuel, maintenance, insurance, depreciation, taxes, and other costs. Understanding your cost per mile helps you make informed decisions about vehicle ownership, compare different vehicles, and budget for transportation expenses.

Components of Vehicle Costs

Total vehicle costs consist of several major components:

• Fuel: Typically 15-20% of total costs. Varies with fuel prices and vehicle efficiency.
• Depreciation: Usually the largest cost at 40-50%. The loss in vehicle value over time.
• Insurance: About 20-25% of costs. Varies by driver, vehicle, and location.
• Maintenance & Repairs: About 10-15% of costs. Increases as vehicle ages.
• Taxes & Fees: Registration, title fees, and personal property taxes.
• Financing: Interest payments if the vehicle is financed.

Average Cost Per Mile in the US

According to AAA's 2023 Your Driving Costs report, the average cost to own and operate a new vehicle in the United States is approximately $0.67 per mile. This varies significantly by:

• Vehicle type: Small sedan ~$0.54/mile, SUV ~$0.75/mile, Pickup ~$0.85/mile
• Annual mileage: Higher mileage reduces cost per mile (fixed costs spread over more miles)
• Vehicle age: Newer vehicles have higher depreciation but lower maintenance
• Location: Insurance and registration costs vary by state

How to Reduce Your Cost Per Mile

Strategies to lower your vehicle operating costs:

• Drive less: Combine trips, carpool, use public transit when possible
• Choose fuel-efficient vehicles: Hybrids and EVs can reduce fuel costs by 50% or more
• Maintain proper tire pressure: Improves fuel economy by 3-5%
• Regular maintenance: Preventive maintenance is cheaper than repairs
• Shop for insurance: Compare quotes annually
• Keep vehicles longer: Reduces annual depreciation costs
• Consider total cost: Look beyond purchase price to total ownership costs

Using This Calculator

This calculator helps you understand your true vehicle costs by breaking down each expense category and calculating your cost per mile. Use it to compare your current vehicle with potential replacements, budget for vehicle expenses, or evaluate whether leasing or buying makes more financial sense. The comparison with national averages helps you see where you stand and identify opportunities to save.