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Mileage Reimbursement Calculator

The rate covers depreciation, not just fuel.

Work out Mileage Reimbursement. The rate covers depreciation, not just fuel. Every rate is an input, not an assertion.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these

Statutory rates are revised at least annually — check the current figure

Set to 0 for a single flat rate

Reimbursement due

6,700.00

10,000 business miles at 0.670 average

Business miles10,000
Reimbursement6,700.00
Fuel cost for those miles1,166.67
Left over for everything else5,533.33

A statutory mileage rate is meant to cover depreciation, insurance, servicing, tyres and tax as well as fuel, which is why it sits well above the fuel cost alone. The surplus shown is not profit — it is the contribution towards the costs of running the car that do not appear at the pump.

How the Mileage Reimbursement Calculator works

Mileage reimbursement at one or two tiered rates, with fuel cost shown alongside so the gap between them is visible. That gap is not profit — it is the contribution towards depreciation, insurance and servicing that never appears at the pump.

Also known as: business mileage claim calculator · how much can i claim per mile · car allowance versus mileage rate · mileage expense claim calculator

What the rate is actually paying for

A statutory mileage rate covers the full cost of running a vehicle for business: fuel, depreciation, insurance, road tax, servicing, tyres and repairs. That is why it sits well above the fuel cost for the same journey, and why the difference is not profit.

Depreciation is usually the largest single component and the one drivers most consistently forget, because it never appears as a transaction. A car driven 20,000 business miles a year loses value considerably faster than one driven 5,000, and the mileage rate is the mechanism that compensates for it.

This is also why two-tier rates exist. A higher rate for the first block of annual miles and a lower one above reflects the reasoning that fixed costs — insurance, tax, a share of depreciation — are recovered within the first block, leaving mainly running costs beyond it.

Which journeys qualify

Travel between home and a regular workplace is treated as private in essentially every system, and it is not reimbursable however far it is. Travel between work sites during the day generally is, as is travel from home directly to a client when that is not your normal base.

The temporary workplace question is where most claims are challenged. Assignments at a single site beyond a defined duration usually convert that site into a permanent workplace, at which point the journeys become ordinary commuting. The threshold varies and is worth knowing before a long assignment starts rather than after.

Records decide disputes. Date, start and end points, purpose and distance for each journey is the standard expectation, and reconstructing a year from memory does not survive scrutiny. Apps that log automatically have become the practical answer for anyone claiming meaningful mileage.

Allowance, mileage, and electric vehicles

A cash car allowance is generally taxable as income while mileage within the published rate generally is not. High-mileage drivers therefore usually do better on a mileage rate, and low-mileage drivers with an expensive vehicle often do better on an allowance. Some employers offer both and the choice is worth calculating rather than guessing.

Electric vehicles have separate advisory rates in many jurisdictions, reflecting much lower per-mile energy costs. Claiming the petrol rate for an EV can create a taxable excess, and the gap between the two rates is large enough that it is not a rounding matter.

Where an employer pays below the published rate, several systems allow the driver to claim tax relief on the shortfall. It is a genuine entitlement that goes unclaimed constantly, because it requires filing something rather than simply appearing on a payslip.

Where to go next

The Mileage Reimbursement question rarely arrives on its own. These are the ones that usually come with it:

Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.

Frequently asked questions

How do I calculate mileage reimbursement?

Multiply business miles by the applicable rate. Some schemes use a two-tier structure with a lower rate above an annual threshold, in which case the miles split between the two rates.

What does the mileage rate cover?

Fuel, depreciation, insurance, road tax, servicing, tyres and repairs — the full cost of running the vehicle, not just the fuel burned. That is why it sits well above the fuel cost for the same distance.

Are commuting miles reimbursable?

Almost never. Travel between home and a regular workplace is treated as private in most systems. Travel between sites during the working day generally is reimbursable.

Do I need a mileage log?

Yes, in practice. Tax authorities expect date, destination, purpose and distance for each business journey. Reconstructing a year of trips from memory is exactly what an audit will not accept.

What if my employer pays below the statutory rate?

In several jurisdictions you can claim tax relief on the shortfall. Where the employer pays above the published rate, the excess is usually treated as taxable income.

Where do I find the current rate?

From your national tax authority, which publishes it and revises it at least annually. The defaults on this page are illustrative — enter the current published figure for your country and tax year.

What is a two-tier mileage rate?

A higher rate for the first block of business miles each year and a lower one above it, on the reasoning that the fixed costs of running the car are recovered within the first block and only running costs remain.

Should I take a car allowance or mileage?

A cash allowance is usually taxable as income while a mileage rate within the published limit usually is not, so high-mileage drivers often do better on mileage. Low-mileage drivers with an expensive car often do better on an allowance.

Does an electric vehicle use a different rate?

Many tax authorities publish separate advisory rates for electric vehicles, reflecting much lower per-mile energy costs. Applying the petrol rate to an EV can create a taxable excess.

What records does a mileage claim need?

Date, start and end points, purpose, and distance for each journey. Apps that log automatically from location data have become the practical answer, since reconstructing from memory does not survive scrutiny.

Can I claim for travel to a temporary workplace?

Usually yes, subject to rules about how long an assignment can last before the location counts as permanent. The distinction between temporary and permanent workplace is where most mileage claims are challenged.

Is mileage reimbursement taxable?

Not up to the published rate. Anything above it is generally taxable, and anything below it may create a claim for tax relief on the shortfall depending on your jurisdiction.

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