Mileage Calculator · Practical guide
Standard Mileage Rate vs Fuel Cost
The IRS rate covers far more than gas — see how the $0.67/mile deduction stacks up against real fuel costs.
At a glance
The Comparison in One Example
Drive 1,000 business miles in a car getting 25 MPG with gas at $3.50 per gallon. Your actual fuel cost is (1,000 / 25) x $3.50 = $140. The standard mileage deduction is 1,000 x $0.67 = $670 — a net benefit of $530 over fuel alone.
Interactive tool
Mileage Calculator
Enter your own values, then compare the result with the examples below.
Results
How MPG Changes the Gap
| Vehicle MPG | Fuel Cost (1,000 mi @ $3.50/gal) | Deduction at $0.67/mi | Net Benefit |
|---|---|---|---|
| 20 MPG | $175.00 | $670.00 | $495.00 |
| 25 MPG | $140.00 | $670.00 | $530.00 |
| 30 MPG | $116.67 | $670.00 | $553.33 |
| 40 MPG | $87.50 | $670.00 | $582.50 |
Why the Rate Is So Much Higher Than Gas
The standard rate is built to cover the full cost of operating a vehicle: fuel, oil, tires, maintenance, insurance, registration, and depreciation. Fuel is typically only a third or less of true per-mile cost — which is why the deduction usually exceeds what you spend at the pump.
When Fuel Cost Nearly Catches Up
A gas-hungry truck at 12 MPG burns $291.67 in fuel over 1,000 miles at $3.50/gal, and expensive vehicles depreciate faster — the actual-expense method can win in those cases. Enter your own miles, MPG, and fuel price above to see both figures side by side before deciding.
Frequently Asked Questions
Is the standard mileage rate just for gas?
No. It bundles fuel, maintenance, insurance, depreciation, and other operating costs into one per-mile figure, which is why it far exceeds fuel cost alone.
Can I switch between the standard rate and actual expenses?
For a vehicle you own, you must use the standard rate in the first year of business use to keep the option of switching later. Leased vehicles must stick with the standard rate for the whole lease.
Does an electric vehicle qualify for the standard rate?
Yes — the IRS standard mileage rate applies to electric and hybrid vehicles as well as gasoline and diesel ones.
What if my actual costs exceed the standard rate?
You may deduct actual expenses instead — gas, repairs, insurance, depreciation — prorated by business-use percentage. Keep every receipt and a mileage log.