Mileage Calculator — Free Online Mileage Reimbursement Tool

How to Use the Mileage Calculator

1. Enter your miles driven: Type the total number of business, medical, or charitable miles you want to calculate reimbursement for. This can be miles from a single trip, a weekly total, a monthly tally, or your entire annual business driving mileage. Accurate mileage records are essential for IRS compliance.
2. Set the IRS mileage rate: The calculator automatically defaults to the 2026 IRS standard business mileage rate of $0.70 per mile. If your employer uses a different reimbursement rate, adjust this value accordingly. For medical driving, use $0.22 per mile, and for charitable driving, use $0.14 per mile.
3. Enter your vehicle's MPG: Input your vehicle's actual miles per gallon to calculate the real fuel cost of your driving. This allows the calculator to compare what you actually spend on fuel versus what you receive in reimbursement, showing the net financial benefit. Use your real-world MPG for the most accurate comparison.
4. Enter the current gas price: Type the price per gallon you typically pay for fuel. Combined with your MPG, this determines the actual fuel cost of your business miles, which is then compared to the reimbursement to show your net savings or shortfall.

Results update instantly as you change any input. Try different scenarios to understand how vehicle efficiency and gas prices affect the financial benefit of your mileage deduction or employer reimbursement.

Mileage Reimbursement Formula

Variables Explained

• Miles Driven: The total deductible or reimbursable miles traveled for business, medical, or charitable purposes. Commuting miles from home to your regular workplace do not qualify unless you have a qualifying home office.
• IRS Rate Per Mile: The standard mileage rate set by the IRS for the current tax year. For 2026, the business rate is $0.70 per mile, the medical and moving rate is $0.22 per mile, and the charitable rate is $0.14 per mile. This rate accounts for fuel, depreciation, insurance, maintenance, and other vehicle operating costs.
• Fuel Cost: The actual amount you spend on gasoline for the miles driven, calculated by dividing miles by your vehicle's MPG and multiplying by the gas price. This represents only the fuel portion of your driving costs.
• Net Savings: The difference between your reimbursement and actual fuel cost. Since the IRS rate covers more than just fuel (it also covers depreciation, insurance, and maintenance), most drivers see positive net savings on the fuel comparison alone. However, vehicle wear, insurance, and depreciation should also be considered for a complete financial picture.

Step-by-Step Example

Suppose you drove 1,200 business miles this month in a vehicle that gets 28 MPG, with gas at $3.45 per gallon, using the 2026 IRS rate of $0.70 per mile:

1. Calculate reimbursement: 1,200 x $0.70 = $840.00
2. Calculate gallons used: 1,200 / 28 = 42.86 gallons
3. Calculate actual fuel cost: 42.86 x $3.45 = $147.86
4. Calculate net savings: $840.00 - $147.86 = $692.14

Your $840 reimbursement exceeds the $147.86 fuel cost by $692.14. This net difference helps offset the non-fuel costs of vehicle ownership such as depreciation, insurance, maintenance, and tire wear that the IRS rate is designed to cover.

Practical Examples

Example 1: Daniel's Monthly Sales Territory

Daniel is a pharmaceutical sales representative who drives between hospitals and clinics throughout his territory. In January 2026, he logged 2,400 business miles in his compact sedan that averages 32 MPG. Gas prices in his area averaged $3.40 per gallon. His employer reimburses at the full IRS rate:

• Reimbursement: 2,400 x $0.70 = $1,680.00
• Fuel cost: (2,400 / 32) x $3.40 = 75 x $3.40 = $255.00
• Net savings: $1,680.00 - $255.00 = $1,425.00

Daniel's monthly reimbursement of $1,680 far exceeds his $255 fuel cost. The $1,425 net covers his insurance, depreciation, oil changes, tire wear, and other vehicle operating costs. Over a year of similar driving, Daniel receives $20,160 in tax-free mileage reimbursement.

Example 2: Patricia's Real Estate Client Visits

Patricia is a real estate agent who drives to property showings and client meetings using her personal SUV, which gets 22 MPG. As a self-employed professional, she deducts mileage on her Schedule C. In a typical month, she drives 1,800 business miles with gas at $3.55 per gallon:

• Tax deduction value: 1,800 x $0.70 = $1,260.00
• Fuel cost: (1,800 / 22) x $3.55 = 81.82 x $3.55 = $290.45
• Net benefit: $1,260.00 - $290.45 = $969.55
• Annual deduction: $1,260 x 12 = $15,120

Patricia's annual mileage deduction of $15,120 significantly reduces her taxable self-employment income. In the 22% federal tax bracket plus 15.3% self-employment tax, this deduction saves her approximately $5,640 in taxes per year.

Example 3: Robert's Medical Appointment Driving

Robert undergoes regular medical treatment that requires a 45-mile round trip to a specialist three times per month. He tracks his medical mileage for a tax deduction at the 2026 medical rate of $0.22 per mile. His car gets 30 MPG and gas costs $3.50:

• Monthly medical miles: 45 x 3 = 135 miles
• Annual medical miles: 135 x 12 = 1,620 miles
• Annual deduction: 1,620 x $0.22 = $356.40
• Actual fuel cost: (1,620 / 30) x $3.50 = $189.00

Robert adds his $356.40 medical mileage to his other medical expenses. Since medical expenses must exceed 7.5% of adjusted gross income to be deductible, he combines this with all other qualified medical expenses to determine if he meets the threshold on his itemized deductions.

IRS Mileage Rate Reference Table

Fuel cost column assumes 25 MPG and $3.50/gallon. Business rate includes coverage for fuel, depreciation, insurance, and maintenance.

Tips and Complete Guide

Understanding the IRS Standard Mileage Rate

The IRS standard mileage rate is a per-mile rate set annually that taxpayers can use to calculate the deductible cost of operating a vehicle for business, medical, charitable, or moving purposes. The 2026 business rate of $0.70 per mile reflects the IRS's calculation of average vehicle operating costs including gasoline, oil, tires, maintenance, insurance, registration, and depreciation. This rate simplifies tax reporting by eliminating the need to track individual expenses. For most drivers, especially those with fuel-efficient vehicles, the standard rate provides a greater deduction than tracking actual expenses. The rate is adjusted annually based on a study of fixed and variable costs of operating a vehicle, conducted by an independent contractor for the IRS.

Maximizing Your Mileage Deduction

To maximize the financial benefit of your mileage deduction, maintain meticulous records starting from the first business mile of the year. Use a dedicated mileage tracking app that records trips via GPS, as this creates an IRS-compliant digital log automatically. Remember that mileage from your home office to client locations counts as business mileage if you have a qualifying home office. Combine business errands efficiently but track each separately for documentation purposes. Consider whether the standard mileage rate or actual expense method yields a larger deduction for your specific vehicle. Generally, a fuel-efficient car benefits more from the standard rate, while an expensive, gas-guzzling vehicle may yield more through actual expenses. Check your results with our fuel cost calculator to compare methods.

Employer Reimbursement Policies

Many employers reimburse employees for business use of personal vehicles. Under an accountable plan, reimbursement at or below the IRS rate is tax-free to the employee. Some employers reimburse at a lower rate, in which case employees could previously deduct the difference, but the Tax Cuts and Jobs Act suspended this deduction for employees through 2025. For 2026, check current tax law regarding unreimbursed employee expense deductions. Self-employed individuals always have access to the full mileage deduction on Schedule C, making this rate particularly valuable for freelancers, contractors, and small business owners who use their personal vehicle for work.

Common Mistakes to Avoid

• Deducting commuting miles: The most common mileage deduction error is claiming the daily commute from home to a fixed workplace. This is never deductible regardless of distance, traffic, or tolls incurred during the commute.
• Not keeping contemporaneous records: Reconstructing mileage logs at the end of the year from memory is insufficient for IRS audit purposes. Record each trip at or near the time it occurs using an app or written log.
• Mixing personal and business use: Only the business portion of mixed-use trips is deductible. If you make a personal stop during a business trip, only the business miles qualify. Keep personal detour miles separate.
• Using the wrong rate for the purpose: The business rate ($0.70), medical rate ($0.22), and charitable rate ($0.14) are different. Applying the business rate to charitable driving would overstate your deduction and trigger IRS scrutiny.
• Forgetting to include parking and tolls: Business-related parking fees and highway tolls are deductible in addition to the standard mileage rate. Many taxpayers forget to track these supplemental expenses, leaving deduction money on the table.

Frequently Asked Questions