Mileage Allowance Calculator
Yearly mileage reimbursement, what the fuel alone costs, and the margin between the two.
Results
What this tool does
The margin is not profit: it is what covers the wear a car takes from business kilometres it would not otherwise have done. If the margin comes out near zero, the rate is only paying for fuel and the vehicle is being run down at the driver's expense.
Formula
repayment = kilometres × rate
Variables
| Symbol | Meaning | Unit |
|---|---|---|
km | Distance per year | km |
rt | Allowance rate | /km |
cn | Fuel consumption | L/100km |
fp | Fuel price per litre | — |
AL | Reimbursement | — |
FU | Fuel cost | — |
MG | Margin | — |
PK | Cost per kilometre | — |
MO | Cost per month | — |
Worked example
- Distance per year8500 km
- Allowance rate0.36 /km
- Fuel consumption6.5 L/100km
- Fuel price per litre1.72
- Reimbursement3060.00
- Fuel cost950.30
- Margin2109.70
- Cost per kilometre0.1118
- Cost per month255.00
Limitations
- Tax rates and rounding rules differ between countries and sometimes between regions. Use the rate that applies to your invoice.
- For work that must comply with a standard or be signed off, check the result against the applicable code and have it reviewed by a qualified engineer.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.
Frequently asked questions
Should the allowance only cover the fuel?
No, and the gap shown as the margin is the point. A per-kilometre allowance is meant to cover the whole marginal cost of using a private car for work: fuel, tyres, servicing, the extra depreciation from the mileage, and part of the insurance. Fuel is usually only half of it. Statutory rates and their tax treatment are set nationally and change, so take the rate from your tax authority rather than the default here.