What it really costs to drive a car per mile
In the United States, a realistic all-in average is roughly 70–85 cents per mile for a typical new vehicle driven about 15,000 miles a year; AAA’s most recent comprehensive “Your Driving Costs” analysis (2023) pegs it near 81 cents per mile, while actual costs vary widely by vehicle type, fuel, financing, and miles driven.
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Why the “average cost per mile” is a moving target
Per-mile driving costs are not a single fixed number. They combine depreciation, financing, insurance, taxes/fees, fuel or electricity, maintenance, repairs, and tires—many of which swing with interest rates, fuel prices, and how much you drive. Benchmarks help: AAA’s 2023 report estimated about $12,182 per year to own and operate a new vehicle at 15,000 miles, or roughly 81 cents per mile. As a policy proxy, the IRS 2024 standard mileage rate for business use was 67 cents per mile, reflecting a broad national average of variable and fixed costs used for tax deduction purposes, not a model-specific ownership cost.
What goes into cost per mile
The total you spend each mile comes from a mix of fixed and variable costs. Here’s how the major components typically stack up and why they matter.
- Depreciation: The single biggest cost for new vehicles; often around 30–40+ cents per mile at 15,000 miles/year, depending on make, model, and resale trends.
- Financing: Interest on auto loans; sensitive to rates and credit. Can add several cents per mile, especially on longer loans with small down payments.
- Insurance: Premiums vary by driver profile, vehicle, and location; averaged over miles, commonly 7–12 cents per mile.
- License, registration, and taxes: Typically a few cents per mile, higher in states that base fees on vehicle value or weight.
- Fuel or electricity: Highly variable. Gas at $3.60/gal and 30 mpg ≈ 12 cents/mile; electricity at $0.14/kWh and 0.30 kWh/mile ≈ 4 cents/mile.
- Maintenance, repairs, and tires: Routine service, wear items, and unexpected fixes; commonly 7–12 cents per mile on newer cars, rising with age and mileage.
Taken together, these items typically produce a per-mile figure near the 70–85 cent range for new mainstream vehicles, with fuel/energy and depreciation driving most of the variation.
Illustrative per-mile ranges by scenario
Actual costs vary by model, powertrain, age, and use. The ranges below reflect typical U.S. conditions and can shift with fuel prices, interest rates, and local insurance markets.
- New compact/midsize sedan or small crossover (gas): About 70–85 cents/mile at 15,000 miles/year.
- New midsize/three-row SUV or pickup (gas): About 85–105 cents/mile, reflecting higher purchase price, depreciation, and fuel use.
- New mainstream EV: Roughly 70–90 cents/mile; low energy and maintenance costs offset by higher purchase price and depreciation dynamics.
- Well-kept, paid-off used car: Often 35–55 cents/mile, as lower depreciation and no loan interest compensate for rising maintenance and repairs.
These bands show why “average” depends on what you drive and how: heavier, pricier, and thirstier vehicles push the number up; older, paid-off cars driven more miles push it down.
How to estimate your own cost per mile
You can build a personal per-mile figure with a simple tally of annual costs divided by miles driven. This approach captures your real-world mix of fixed and variable expenses.
- List annual fixed costs: depreciation (or value drop), loan interest, insurance, registration/fees.
- Add annual operating costs: fuel/electricity, maintenance, repairs, and tires.
- Total those costs for the year.
- Divide by annual miles driven (e.g., 12,000; 15,000; 20,000) to get cents per mile.
- Stress-test it: adjust fuel price, miles driven, or insurance to see how your per-mile cost changes.
This method reveals which levers matter most for you—typically miles driven (spreads fixed costs), vehicle choice, and energy prices.
What most affects the number
A few factors routinely swing per-mile costs up or down. Understanding them helps you forecast and control your expenses.
- Miles driven: More miles generally lowers the per-mile impact of fixed costs, though it raises variable costs.
- Vehicle class and weight: Larger, heavier, and luxury models bring higher purchase price, depreciation, insurance, and energy use.
- Financing environment: Higher interest rates raise per-mile costs on financed vehicles.
- Energy prices and efficiency: Gas prices and mpg—or electricity rates and consumption—directly change operating costs.
- Resale trends: Models with strong residual values cut depreciation, often the biggest cost line.
- Location: Insurance, taxes, registration, and even energy prices vary widely by state and city.
Because these factors move over time, revisiting your calculation yearly provides a more accurate, timely picture of your true costs.
Benchmarks to keep in mind
For context, AAA’s 2023 “Your Driving Costs” placed the all-in average near 81 cents per mile at 15,000 miles/year for a new vehicle. The IRS’s 2024 business mileage rate of 67 cents per mile offers a useful nationwide proxy for deduction purposes, though it’s not tailored to a specific car. If you drive significantly more or less than 15,000 miles, expect your per-mile number to shift—higher for low-mileage drivers (fixed costs loom larger), lower for high-mileage drivers (fixed costs are spread farther).
Bottom line
As a practical rule of thumb, expect roughly 70–85 cents per mile for a typical new car in the U.S., with vehicle size, financing, fuel/electricity prices, and annual mileage making the biggest difference. Owners of older, paid-off vehicles often land closer to 35–55 cents per mile, while large SUVs and trucks can exceed a dollar per mile.
Summary
Average cost per mile depends on what you drive, how far, and current market conditions. Recent national benchmarks suggest around 70–85 cents per mile for new vehicles at 15,000 miles/year (AAA 2023 ≈ 81 cents), with the IRS 2024 business rate at 67 cents per mile as a broad proxy. For your exact number, total your annual fixed and operating expenses and divide by miles driven—then revisit the math as prices and your driving habits change.
How expensive is it to drive 1 mile?
How much is petrol per mile?
| Cost of Petrol per Mile | Average MPG | Cost per mile |
|---|---|---|
| Gasoline | ||
| up to 1400 cc | 46 | 13p |
| 1401 to 2000 cc | 42 | 14p |
| Over 2000 cc | 34 | 18p |
What is a fair price to charge per mile?
Most delivery businesses charge between $1 and $3 per mile, depending on factors such as: Vehicle type (car, van, or truck) Fuel efficiency and maintenance costs. Location and delivery range.
How much does it cost for 1 mile of gas?
Considering the average gas price of $3.50 per gallon and an average fuel efficiency of about 25 MPG for a typical U.S. car, the cost per mile ranges from approximately 14 to 20 cents. This cost varies based on the vehicle’s efficiency and engine size.
What’s the average price of a mile?
Owner-operators and small fleets typically see total costs of $1.90–$2.30 per mile, depending on factors such as equipment utilization, insurance, and maintenance.
