Vehicle EconomicsMileage Reimbursement vs Actual Cost Calculator
See whether a flat per-mile reimbursement rate actually covers what your vehicle costs to run.
Why this comes up
A flat per-mile reimbursement rate is a population average. Your specific vehicle's real cost per mile, financing, depreciation, energy, insurance, can sit well above or below it, especially for a newer or larger vehicle. This engine puts your own number next to the reimbursement rate directly.
How we calculated this
We multiply your reimbursement rate and your vehicle's own cost per mile by the same annual business-mile figure, then show the gap. A positive gap means the reimbursement exceeds your modeled cost; a negative gap means you are undercompensated.
Worked example, using this page's own defaults (a $0.67/mile rate, 8,000 business miles, a $0.55/mile vehicle cost): reimbursement received is $5,360 against a modeled cost of $4,400, a $960 surplus.
What this means
- Use Vehicle Cost Per Mile to compute your own precise figure rather than guessing at it.
- A larger or newer vehicle's true cost per mile is often higher than a flat published rate assumes.
- This is informational economics only; it makes no claim about tax deductibility, standard-mileage-versus-actual-expense elections, or any filing decision.
Limitations
This is not tax advice. Your vehicle's cost per mile and the reimbursement rate are both your own inputs; verify the reimbursement rate against your employer's current published figure rather than assuming it is current. See Methodology.
Methodology
This engine multiplies your own cost-per-mile figure by your annual business miles. See Methodology for the full detail.