Mileage Reimbursement Calculator
What a per-mile rate pays back when you drive your own car for work.
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Formula
How the calculation works
A mileage rate is meant to cover the whole cost of driving, not just the fuel. On the worked example, 500 units at 0.50 pays 250, of which 75 is fuel, leaving 175 to pay for tyres, servicing and the fall in the car's value.
The remainder is what the trip is actually worth to you. If the rate is close to the fuel cost, driving for work barely pays; if it is well above, the difference is real compensation rather than a rounding.
Common mistakes
- Comparing the rate with the fuel cost alone. The rate also pays for wear, so a rate barely above fuel still leaves you short once servicing is counted.
- Mixing units. A rate given per mile with a distance given in kilometres quietly overstates or understates the whole claim.
When to use it
- Use it before a claim or a tax return to see whether the rate actually covers the driving, and to put a number on the wear the rate is meant to pay for.
- It works on a single rate and a single fuel cost; if your employer pays a different rate for the first miles than the rest, run the two parts separately.
Worked example
500 units at 0.50 with fuel at 0.15: 250 back, 75 of fuel, 175 left over.
Common questions
Why not just count the fuel?
No. The rate covers tyres, servicing and wear as well as fuel. What is left after fuel is the real benefit.
Which unit is the distance in?
Use the same unit as the rate, miles with miles and kilometres with kilometres. Do not mix them.
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