1. What is Cost Per Mile?

The cost per mile is a measure of how much it costs to operate a vehicle for each mile driven. It includes all major expenses associated with vehicle operation, including fuel, maintenance, and depreciation.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Fuel cost — Total amount spent on fuel (USD)
• Maintenance — Total maintenance and repair costs (USD)
• Depreciation — Vehicle value loss over the period (USD)
• Distance — Total miles driven during the period

Explanation: The equation sums all vehicle operating costs and divides by the total distance driven to determine the cost for each mile.

3. Importance of Calculating Cost Per Mile

Details: Knowing your cost per mile helps with budgeting, comparing vehicle efficiency, determining business expenses, and making informed decisions about vehicle usage.

4. Using the Calculator

Tips: Enter all costs in USD and distance in miles. For accurate results, use data from a specific time period (e.g., monthly or yearly costs and mileage).

5. Frequently Asked Questions (FAQ)

Q1: What's included in maintenance costs?
A: Include oil changes, tire rotations, repairs, and any other regular maintenance expenses.

Q2: How do I calculate depreciation?
A: Subtract your vehicle's current value from what you paid for it. For leased vehicles, use your lease payments.

Q3: What's a good cost per mile?
A: The average cost per mile in the US is about $0.58, but this varies by vehicle type, age, and driving habits.

Q4: Should I include insurance in this calculation?
A: For personal use, insurance is typically excluded. For business use, you may want to include it.

Q5: How can I reduce my cost per mile?
A: Improve fuel efficiency, perform regular maintenance, drive fewer miles, and choose vehicles with lower depreciation rates.