Mileage Reimbursement Calculator
Example: Business miles driven: 5000 mi · Reimbursement rate per mile: 0.67 $/mi · Fuel economy: 28 mpg · Gas price: 3.5 $/gal · Wear-and-tear cost per mile: 0.2 $/mi
| Net gain (or loss) | $1,725 |
| Total reimbursement | $3,350 |
| Actual driving cost | $1,625 |
Worked example
Drive 5,000 business miles reimbursed at $0.67 a mile and you collect $3,350. Your fuel at 28 MPG and $3.50 costs about $625, and wear at $0.20 a mile adds $1,000, for an actual cost near $1,625. That leaves a net gain of about $1,725, because the standard rate is built to cover depreciation and insurance too, not just gas and immediate wear. Enter a fuller wear figure to see the margin shrink toward break-even.
Frequently asked questions
What is the current standard mileage rate?
The IRS sets a standard business mileage rate each year, updated for fuel and vehicle costs. Use the current year rate as your reimbursement figure if your employer pays the standard rate, and check the IRS page for the exact number.
Why can the reimbursement exceed my visible costs?
The standard rate is designed to cover the full cost of driving, including depreciation and insurance, not just fuel. If you only enter fuel and light wear, the net gain looks large. Raise the wear-per-mile input toward your true cost per mile for a realistic margin.
Is mileage reimbursement taxable income?
Reimbursement at or below the IRS standard rate under an accountable plan is generally not taxable. Amounts above the standard rate, or under a non-accountable plan, can be taxable. Confirm your employer plan type and check current IRS guidance.
Can I use this to set a rate for clients?
Yes. If you invoice clients for mileage, enter your true cost per mile as the wear figure to make sure the rate you charge covers your actual expense and leaves a fair margin.