Mileage Reimbursement Calculator
Enter the miles and the rate you claim at. Add your fuel economy and the pump price and it will also show how much of the payment is really fuel.
Mileage claim
$428.80
- Distance claimed
- 640 miles
- Fuel it actually used
- $72.53
- Left over for everything else
- $356.27
- Rate applied
- $0.67 per mile
- The fuel came to $72.53, so $356.27 of the claim covers the other costs of the miles — tyres, servicing, insurance and depreciation.
- The rate is yours to enter. Approved mileage rates differ by country, change from year to year and often step down after a threshold of annual miles, so none is published here.
- A mileage rate is meant to cover the whole cost of running the vehicle for those miles, not just the fuel. That is why it sits so far above what the fuel alone costs.
- Commuting to a usual place of work is not normally claimable. Travel between sites, or to a temporary workplace, usually is.
About mileage claims
A mileage rate is a single figure meant to cover the entire cost of running a vehicle for those miles. Not the fuel — everything. Fuel, tyres, servicing, insurance, tax and the depreciation the miles cause.
That is why the rate looks so generous against the pump price, and why it is not generous at all. On 640 miles in a 30 mpg car at $3.40 a gallon, the fuel comes to $72.53. A claim of $0.67 a mile pays $428.80. The $356.27 difference is not profit; it is the share of everything else those 640 miles consumed.
The rate itself is a field here and will never be a published figure on this page. Approved rates differ by country, are revised most years, and frequently step down after a threshold of annual business miles — so any number printed here would be wrong for most readers and out of date for the rest. Take the current rate from your tax authority or your employer's policy.
What counts as a business mile is a question of rules rather than arithmetic. Travelling between sites or to a temporary workplace usually qualifies; the ordinary commute to a regular place of work usually does not.
What it works out
- A claim from distance and rate
- What the fuel actually cost
- What the rest of the rate is covering
- Miles or kilometres, any rate
The formula
Claim = Distance × Rate
The claim itself is one multiplication: 640 miles at $0.67 is $428.80.
The second calculation is the interesting one. Those 640 miles at 30 mpg used 21.33 gallons, which at $3.40 cost $72.53. So the fuel is about 17% of the payment and the remaining $356.27 covers everything else the miles consumed.
That ratio is roughly what a mileage rate is designed to produce. It is why claiming fuel receipts instead of mileage is usually a bad trade, and why a rate that looks like a windfall on a fuel-efficient car is doing real work on tyres, servicing, insurance and depreciation.
The relationship inverts on a thirsty vehicle. The same 640 miles at 15 mpg burn $145.07 of fuel, which is over a third of the same claim. A single rate cannot be equally fair to both, which is the compromise every mileage scheme makes.
- Distance
- Business miles only. The ordinary commute usually does not qualify.
- Rate
- The approved or agreed rate. It differs by country and is revised most years.
A worked example
640 business miles at $0.67 a mile, in a 30 mpg car with fuel at $3.40 a gallon.
That works out to $428.80 .
- Distance claimed
- 640 miles
- Fuel it actually used
- $72.53
- Left over for everything else
- $356.27
- Rate applied
- $0.67 per mile
Questions
How do I calculate a mileage claim?
Multiply the business miles by the rate. 640 miles at $0.67 a mile is $428.80.
What is the current mileage rate?
It differs by country and is revised most years, so it is a field here rather than a figure on the page — anything printed would go out of date. Take the current rate from your tax authority or your employer's policy.
Why is the rate so much higher than the fuel cost?
Because it is meant to cover the whole cost of the miles, not just the fuel. On 640 miles at 30 mpg the fuel is about $72.53 of a $428.80 claim; the rest covers tyres, servicing, insurance, tax and depreciation.
Can I claim fuel receipts instead?
Sometimes, depending on the scheme, but it is usually worse. Receipts cover only the fuel, where a mileage rate covers the wear as well — on these figures that is $72.53 against $428.80.
Does commuting count as business mileage?
Normally not. Travel to a regular place of work is usually treated as ordinary commuting, while travel between sites or to a temporary workplace usually qualifies. The rules differ by country, so check yours.
Do I need to keep a record?
Yes, and a contemporaneous one. Date, purpose, start and end points and distance for each journey is the usual expectation, and reconstructing a year of it from memory afterwards is neither easy nor convincing.
What if my employer pays less than the approved rate?
In several countries you can claim tax relief on the shortfall. The mechanism differs by jurisdiction, so check the rules that apply to you.
Is the rate the same for a motorcycle or a bicycle?
Usually no — most schemes set separate and lower rates for motorcycles and bicycles, on the grounds that they cost less per mile to run. Enter whichever rate applies.