Short answer: A car that gets 28 mpg with gas at $4.25, $4,250 a year in repairs, tires, extra insurance and value loss, and 18,000 miles a year costs about $0.39 a mile: $0.15 in gas and $0.24 in wear. That's below the IRS rate of 76¢ a mile (since July 1, 2026). More in How Much Does Your Car Really Cost Per Mile?.
Check our math
Here is the result above, step by step, using the numbers already filled in.
- Gas per mile$4.25 ÷ 28 mpg = $0.15 (15.2¢)
- Yearly wear and value loss$1,200 + $250 + $300 + $2,500 = $4,250
- Wear per mile$4,250 ÷ 18,000 mi = $0.24 (23.6¢)
- Car cost per mile15.2¢ + 23.6¢ = 38.8¢ → $0.39
- Per 100 miles$0.39 × 100 = $39
How this calculator works
Your cost per mile has two parts. Gas is simple: the price per gallon divided by your miles per gallon. Wear is the yearly cost of keeping the car going for the miles you put on it: maintenance and repairs, tires, any extra insurance you pay because you drive for apps, and the value the car loses as the miles add up. Divide those by your total miles per year and you have wear per mile.
The number is saved on your phone, and the offer, real hourly pay, app comparison and weekly goal calculators use it automatically.
It's different from the IRS mileage rate (72.5¢ through June 30, 2026, then 76¢; IRS). The IRS rate is a national average for deducting business miles, and it includes costs you'd pay anyway, like full insurance and registration. Your cost per mile is for judging offers. Because your own number is usually lower, the mileage deduction often covers more than your real driving cost.
Gas cost per mile by fuel economy
| Fuel economy | Gas at $3.50 | Gas at $4.25 | Gas at $5.00 | Total cost per mile at $4.25 |
|---|---|---|---|---|
| 20 mpg | $0.18 | $0.21 | $0.25 | $0.45 |
| 25 mpg | $0.14 | $0.17 | $0.20 | $0.41 |
| 30 mpg | $0.12 | $0.14 | $0.17 | $0.38 |
| 35 mpg | $0.10 | $0.12 | $0.14 | $0.36 |
| 40 mpg | $0.09 | $0.11 | $0.13 | $0.34 |
| 50 mpg | $0.07 | $0.09 | $0.10 | $0.32 |
Total cost adds $0.24 a mile of wear and value loss ($4,250 a year over 18,000 miles).
Worked examples
Older, paid-off sedan
32 mpg, $900 of repairs, $200 of tires, $300 of extra insurance and only $800 of value loss a year over 20,000 miles.
| Result | |
|---|---|
| Cost per mile | $0.24 |
| Gas per mile | $0.13 |
| Wear per mile | $0.11 |
Newer SUV
22 mpg and $6,000 a year of value loss over 22,000 miles, plus $1,750 of repairs, tires and insurance.
| Result | |
|---|---|
| Cost per mile | $0.55 |
| Gas per mile | $0.19 |
| Wear per mile | $0.35 |
Hybrid
50 mpg, 25,000 miles a year, with the starting repair, tire, insurance and value-loss numbers.
| Result | |
|---|---|
| Cost per mile | $0.24 |
| Gas per mile | $0.09 |
| Per 100 miles | $24 |
Using your result
Use the result as your floor for offers: an offer that pays less per mile than your car costs loses money before you count your time. Most drivers set their per-mile minimum well above it.
Update it when gas prices move or after a big repair. A 50¢ change in the price of gas moves the cost per mile by about 2¢ in a 25-mpg car, which adds up over a year of driving. If the value-loss number is a guess, look up what your car is worth today and what similar cars with 20,000 more miles sell for; the difference is a fair yearly estimate.
What it doesn't cover
- Car payments and loan interest aren't part of it; value loss stands in for the cost of owning the car.
- Regular insurance and registration are left out because you'd pay them anyway; add them if the car is only for gig work.
- Costs per mile change with how much you drive: more miles spread the yearly costs thinner.
- It's for judging pay. For tax deductions, use the IRS rate or actual expenses.
Read more
- How Much Does Your Car Really Cost Per Mile?
- The Dollar-Per-Mile Rule: Does It Work for Delivery Drivers?
Frequently asked questions
How much does it cost to drive a car per mile?
It depends on your car and your miles. With the starting numbers here it's about $0.39 a mile for gas and wear. Fuel economy and value loss make the biggest differences.
Is my cost per mile the same as the IRS mileage rate?
No. The IRS rate (76¢ a mile since July 1, 2026) is a national average used for tax deductions and includes costs you'd pay anyway. Your own cost for gig driving is usually lower.
How much does gas cost per mile at 30 mpg?
$0.14 a mile with gas at $4.25, or $0.12 at $3.50.
How do I estimate how much value my car loses?
Compare what your car is worth now with what the same model sells for with a year's more miles on it. Pricing guides and listings for similar cars give you both numbers.
How do I use this for an electric car?
Work out your charging cost per mile (your electricity price per kWh divided by the miles you get per kWh), enter that as the gas price, and set miles per gallon to 1. The wear and value-loss fields work the same way.
Should I include my car payment?
Not directly. The loan pays for the car you already own; value loss is the part of that cost gig driving uses up. Counting both would double-count it.
Sources
- IRS: 2026 business standard mileage rate (January announcement)
- IRS Announcement 2026-11 (Internal Revenue Bulletin 2026-29): 76¢ from July 1, 2026
Reviewed against IRS sources: October 2026 · Updated October 2026 · By the NetTakeHome team. Estimates for planning, not tax, legal or financial advice. NetTakeHome is not affiliated with DoorDash, Uber, Lyft or Instacart.