Frequently Asked Questions
What is the IRS standard mileage rate?
The IRS standard mileage rate for 2026 is 70 cents per mile for business use. This rate is set to cover the average costs of fuel, depreciation, insurance, and maintenance across a range of vehicles. If your true per-mile cost is lower, actual-expense tracking may yield a smaller deduction.
Why is depreciation usually the biggest cost per mile?
A typical car loses $2,000-$5,000 in value per year regardless of how much you drive it. When you divide that by annual mileage, it often outweighs fuel cost per mile, especially for lower-mileage drivers. High-mileage drivers spread the fixed depreciation across more miles, lowering the per-mile figure.
Does driving more miles lower my cost per mile?
Yes, for fixed costs. Insurance, registration, and depreciation (to a large extent) are fixed annually, so dividing them by more miles lowers the per-mile share. However, fuel, tire, and maintenance costs scale directly with mileage - they do not shrink. So the marginal cost per additional mile is mainly fuel plus tires.
How should gig and rideshare drivers use this?
Calculate your per-mile cost using realistic values for your vehicle, then compare to your effective per-mile earnings (total earnings divided by total miles driven including repositioning). The difference is your true profit margin per mile, which is often much lower than the gross per-mile rate suggests.
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This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.