Calculate Your Real Cost Per Mile Before Choosing How to Commute

Most people know roughly what they spend on gas each month but have no idea what each mile of driving actually costs them. The difference matters more than you think, especially when comparing commute options, evaluating a job offer that requires a longer drive, or deciding whether a road trip is cheaper than flying. The simple calculation The basic fuel cost per mile is straightforward: Cost per mile = Gas price / Miles per gallon At $3.50 per gallon and 28 MPG, that is $0.125 per mile -- about 12.5 cents. A 30-mile commute each way costs $7.50 per day in fuel alone. Over 250 working days, that is $1,875 per year just in gas. But fuel is only part of the cost of driving. The true cost of a mile The IRS standard mileage rate for 2024 is $0.67 per mile. That is more than five times the fuel-only cost, because it accounts for: Fuel : ~$0.12-0.15/mile depending on vehicle and gas prices Depreciation : ~$0.25-0.30/mile -- your car loses value with every mile driven Insurance : ~$0.05-0.08/