What is a typical cost per mile?

UK average is 30-50p per mile including all costs. Fuel alone is typically 10-18p per mile.

How do I calculate cost per mile?

Add up all annual costs (fuel, insurance, tax, MOT, servicing, depreciation, finance) and divide by annual miles.

Does HMRC have a cost per mile figure?

HMRC allows 45p per mile for the first 10,000 business miles and 25p thereafter. This is the approved mileage allowance payment (AMAP).

What is the average cost per mile to drive in the UK?

The average cost per mile for fuel alone is about 12-18p for petrol cars and 10-15p for diesel. Including all running costs (depreciation, insurance, tax, maintenance), the true cost is typically 30-60p per mile. Electric cars cost 5-10p per mile for energy when charged at home.

What costs should I include in cost per mile?

For a true picture, include fuel, insurance, road tax, MOT, servicing, repairs, tyres, depreciation, finance interest, and parking. For a simpler fuel-only calculation, just divide your fuel cost by miles driven. HMRC uses 45p per mile as the standard business rate, which covers all costs.

CarCalcs

Cost Per Mile Calculator

Calculate the true cost of every mile you drive.

Annual Fuel Cost

Total spent on fuel per year

Annual Insurance

Annual car insurance premium

Annual Mileage

Total miles driven per year

How We Calculate This

Total annual costs divided by annual miles gives cost per mile in pounds, then converted to pence.

Enter your major cost categories separately to see a breakdown of fuel-only vs. total cost per mile. Use the Advanced Options to include road tax, servicing, and depreciation for the most accurate figure.

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Actual figures may vary based on driving conditions, vehicle specifications, and other factors.