Cost Per Mile Calculator
Know Your True Driving Cost
Calculate exactly how much your car costs per mile. Enter your vehicle details below for an instant breakdown of fuel, insurance, tax and servicing costs.
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Total cost per mile
35.7p
per mile driven
HMRC mileage rate comparison
HMRC approved rate: 45p/mile (first 10k miles). Your actual cost: 35.7p/mile. You could claim the difference as tax relief on business miles.
Go Beyond Estimates — Track Real Costs
This calculator gives you an estimate. CarFile gives you the real figures.
Actual expense tracking
Log every real expense as it happens — fuel, insurance, tax, MOT, servicing and repairs. See your true cost per mile based on actual spend, not estimates.
Cost trend analysis
Track how your running costs change over time. Spot when maintenance costs start rising — a signal it may be time to consider replacing your vehicle.
Find savings opportunities
See exactly where your money goes with category breakdowns. Identify which costs are rising and where you have the best opportunity to cut spending.
Track Real Costs with CarFile from £7/month or £69/year
From estimates to actual figures
This calculator provides a useful estimate, but your real costs may differ significantly. CarFile lets you log every actual expense so you see precisely what your vehicle costs — down to the exact penny per mile.
Complete vehicle management
Beyond expense tracking, CarFile includes MOT and tax reminders, service history management, fuel logging, digital document storage and DVLA integration. Everything you need to manage your vehicle in one app.
Frequently Asked Questions
Everything you need to know about cost per mile in the UK
What is cost per mile?
Cost per mile is the total amount you spend to drive your vehicle one mile, including fuel, insurance, tax, servicing, repairs and depreciation. It is calculated by dividing your total annual vehicle costs by the number of miles driven per year. It is expressed in pence per mile in the UK.
What is the average cost per mile to drive a car in the UK?
The average cost per mile for a UK car is approximately 30-50p when all costs are included (fuel, insurance, tax, servicing, depreciation). Fuel alone typically costs 13-18p per mile depending on your vehicle's efficiency and fuel type. Electric vehicles average around 4-6p per mile for energy.
How do I calculate my car's cost per mile?
Add up all your annual vehicle costs — fuel, insurance, road tax, MOT, servicing, repairs and depreciation. Divide the total by the number of miles you drive per year. For example, if your total annual costs are £4,000 and you drive 10,000 miles, your cost per mile is 40p.
What are the HMRC mileage rates for 2024/25?
The HMRC approved mileage allowance payment (AMAP) rate for cars is 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile thereafter. These rates are designed to cover fuel, wear and tear, insurance and depreciation for employees using their own vehicle for business travel.
Can I claim business mileage on my tax return?
Yes. If you use your own vehicle for business travel, you can claim mileage at the HMRC-approved rates. Self-employed individuals claim through their Self Assessment tax return. Employees can claim if their employer pays less than the approved rate — the difference can be claimed as Mileage Allowance Relief.
Is an electric car cheaper per mile than petrol?
Yes, significantly. An electric vehicle typically costs 4-6p per mile for energy (based on average UK electricity tariffs), compared to 15-18p per mile for a petrol car at 40 MPG. However, the higher purchase price of EVs means the total cost per mile depends on annual mileage and how long you keep the vehicle.
How can I reduce my cost per mile?
The most effective ways are: improve fuel economy through smoother driving and correct tyre pressures, shop around for cheaper insurance, keep up with regular servicing to prevent costly repairs, and increase your annual mileage (fixed costs like insurance and tax are spread across more miles). Tracking all expenses with an app like CarFile helps identify where to save.
Understanding Cost Per Mile in the UK
Why cost per mile matters for UK drivers
Knowing your true cost per mile is essential for making informed decisions about your vehicle. Whether you are comparing the real cost of different cars, deciding whether to drive or take public transport for a journey, or claiming business mileage on your tax return, cost per mile is the most useful single metric for understanding vehicle economics.
Most drivers only think about fuel when calculating driving costs, but fuel typically represents only 30-40% of the total cost per mile. Insurance, road tax, MOT, servicing, repairs and depreciation all contribute significantly. A car that appears cheap to run because it is fuel-efficient may actually cost more per mile than a less efficient vehicle if it has high insurance or loses value quickly.
For business mileage claims, HMRC sets an approved rate of 45p per mile for the first 10,000 miles (25p thereafter). If your actual cost per mile is lower than this rate, you effectively make a small profit on business miles. If it is higher, you are subsidising your employer. Knowing your real figure helps you understand the true economics of using your own car for work.
How to get the most accurate cost per mile
The calculator above provides a useful estimate based on average figures, but your actual cost per mile will vary depending on your specific driving habits, the routes you take, and the condition of your vehicle. For example, urban driving with frequent stops and starts uses significantly more fuel than motorway cruising — the same car can vary by 30% or more between these driving styles.
The most accurate way to determine your real cost per mile is to track every expense over time. This means logging every fuel fill-up with the exact amount and mileage, recording every insurance payment, tax renewal, MOT fee, service bill and repair cost. Over 12 months, you will have a precise picture that accounts for seasonal variations and unexpected repairs.
CarFile makes this tracking effortless with its dedicated expense logging. Simply log each cost as it happens — fuel at the pump, insurance renewal, garage bills — and CarFile automatically calculates your real cost per mile, breaking it down by category so you can see exactly where your money goes. Over time, you build the data needed to compare vehicles, optimise your spending and make smarter decisions.
Track Your Real Cost Per Mile
Stop estimating — start tracking. CarFile logs every expense and shows your exact cost per mile.