How car cost per mile is calculated
Fuel is the cost most drivers notice per mile, but it is often a minority of the total. This calculator uses the same methodology as the true cost of ownership calculator and divides the result by the miles you expect to drive.
Formula
Total = (Price − Resale) + Interest + Sales tax & fees + Energy + Insurance + Maintenance + Registration
Cost per mile = Total ÷ (Miles per year × Years)
Energy per mile is Fuel price ÷ MPG for gas cars or (kWh per 100 mi ÷ 100) × Electricity price for EVs.
Worked example
A $32,000 gas car kept 5 years and driven 12,000 miles a year (60,000 miles total), reselling at 50%, with the default insurance, maintenance and financing, totals about $45,559 — roughly $0.76 per mile. Fuel alone is about $0.12 of that.
What the result means
Cost per mile is useful for comparing vehicles, deciding whether a second car is worth keeping, or seeing how much a long commute really costs. It is an average: a car you rarely drive can have a high per-mile cost even if its monthly cost is modest.
Why the loan principal isn't double-counted
Your down payment and loan principal pay for the car itself. That spending is reflected once, as depreciation — what you pay minus what you get back at resale. Only the interest is an added financing cost.
Limitations
- Resale value, insurance and maintenance are assumptions; local prices and driving patterns vary.
- Parking, tolls, tires beyond maintenance and incentives are not included.
- For fuel-only figures, use the fuel cost calculator; to weigh leasing, try lease vs buy.