Mileage Calculator: How to Calculate Your Mileage Deduction or Reimbursement
If you drive for work, volunteer, or run a small business, every mile has a dollar value that you can claim, deduct, or be reimbursed for. A mileage calculator turns your miles into that value using the official government rate, so you don’t have to do the math by hand or look up rates every year.
This guide covers the formula, the 2026 US and UK rates, worked examples, and the record-keeping that keeps your claim safe.
What Is a Mileage Calculator?
A mileage calculator multiplies the miles you drove by a per-mile rate to estimate a tax deduction or reimbursement. The free mileage calculator lets you:
- Enter your miles driven
- Choose a trip type: business, medical or moving, charitable, or a custom rate
- Get your estimated reimbursement or deduction
It’s useful for freelancers, employees using their own cars, small business owners, and gig drivers.
The Mileage Formula
Deduction or reimbursement = Miles driven × Rate per mile
The hard part isn’t the multiplication. It’s using the correct rate for the right country, trip type, and tax year.
2026 IRS Standard Mileage Rates (United States)
| Trip Type | 2026 Rate per Mile |
|---|---|
| Business | 72.5 cents |
| Medical | 20.5 cents |
| Moving (active-duty military) | 20.5 cents |
| Charitable | 14 cents |
The business rate is based on an annual study of vehicle costs. The charitable rate is set by law and doesn’t change with that study. Rates are updated every year, so confirm the current figures at IRS.gov before you file.
HMRC Mileage Rates (United Kingdom)
HMRC’s approved mileage rates use tiers for cars and vans:
| Vehicle | First 10,000 Business Miles | After 10,000 Miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
If you carry a colleague on a business trip, you can also claim an extra 5p per mile per passenger.
Mileage Calculator Examples (US)
Example 1: Short Business Trip Total
You drive 1,850 business miles in a quarter.
1,850 × $0.725 = $1,341.25
Example 2: Full-Year Freelancer
A freelancer drives 12,000 business miles in 2026.
12,000 × $0.725 = $8,700, or about $725 for every 1,000 miles.
Example 3: Mixed Trip Types in One Year
Different trip types use different rates, so calculate each separately:
| Trip Type | Miles | Rate | Amount |
|---|---|---|---|
| Business | 3,000 | $0.725 | $2,175.00 |
| Medical | 400 | $0.205 | $82.00 |
| Charitable | 250 | $0.14 | $35.00 |
Never add them together and apply one rate.
Example 4: Delivery Driver
A delivery driver logs about 150 business miles a week for 50 weeks.
150 × 50 = 7,500 miles, so 7,500 × $0.725 = $5,437.50
Mileage Calculator Examples (UK)
Example 5: Under 10,000 Miles
An employee drives 8,000 business miles in a tax year.
8,000 × £0.45 = £3,600
Example 6: Over 10,000 Miles
A field engineer drives 15,000 business miles in a tax year.
- First 10,000 miles: 10,000 × £0.45 = £4,500
- Next 5,000 miles: 5,000 × £0.25 = £1,250
- Total: £5,750
Only the miles above 10,000 drop to 25p, not the whole total.
Example 7: Carrying a Passenger
You drive 2,000 business miles with a colleague in the car. The passenger payment adds 2,000 × £0.05 = £100.
Example 8: When Your Employer Pays Less
Your employer pays 35p per mile and you drive 8,000 business miles.
- Employer paid: 8,000 × £0.35 = £2,800
- Approved amount: 8,000 × £0.45 = £3,600
- Difference: £800
You may be able to claim tax relief on the difference. If an employer pays more than the approved rate, the excess can be taxable.
Example 9: Motorcycle and Bicycle
- 5,000 motorcycle miles × £0.24 = £1,200
- 1,000 bicycle miles × £0.20 = £200
Standard Mileage Rate vs. Actual Expenses
You can usually choose between two methods:
| Standard Mileage Rate | Actual Expenses | |
|---|---|---|
| What you track | Miles and trip purpose | Fuel, insurance, repairs, depreciation, registration |
| Paperwork | Light | Heavy |
| Best for | Higher-mileage, lower-cost vehicles | Expensive or costly-to-run vehicles |
| Fuel and repairs | Already included in the rate | Counted separately |
Hypothetical example: You drive 10,000 business miles. The standard rate gives you $7,250. With the actual method, your yearly vehicle costs total $9,000 and 60% of use is business, so you’d claim $5,400. The standard rate wins here, but a costly vehicle or a lower business percentage can flip the result.
Rules about switching methods, and about leased vehicles, can limit your options, so check the details before your first year of claiming. Under the standard method in the US, you can generally still deduct business parking fees and tolls on top of the mileage rate.
What Counts as Business Mileage?
Usually qualifies:
- Driving to meet clients or customers
- Traveling between job sites or offices
- Running business errands, such as the bank or supplier pickups
- Business trips from your workplace to a temporary location
Usually doesn’t qualify:
- Your regular commute between home and a regular workplace
- Personal errands
- Travel for non-business purposes
If you work from a home office that qualifies as your main place of business, trips from home to clients may count, but rules vary. Confirm with a tax professional.
How to Keep a Mileage Log
A calculator tells you what your miles are worth, but tax authorities want proof. Record for every trip:
- Date
- Starting point and destination
- Business purpose
- Miles driven
- Odometer readings at the start and end of the year
Record trips as they happen. A notebook, spreadsheet, or mileage app all work, and reconstructing a log months later is risky.
US Employees: A Note on Unreimbursed Mileage
Under current federal rules, most employees can’t deduct unreimbursed work mileage on their federal tax return, even if they drive for work. If your employer reimburses you, that is usually the way to recover the cost. Self-employed people and business owners can generally deduct business mileage. Rules can change and state rules differ, so check with a tax professional.
Mileage Calculator Mistakes to Avoid
- Using last year’s rate instead of the current one
- Combining business, medical, and charitable miles at one rate
- Counting your normal commute as business mileage
- Forgetting that UK rates drop after 10,000 miles
- Claiming fuel costs on top of the standard mileage rate
- Keeping no log to support the claim
FAQ: Mileage Calculator
What is the 2026 IRS business mileage rate?
72.5 cents per mile.
How do I calculate mileage reimbursement?
Multiply your miles by the applicable rate. For example, 1,000 business miles × $0.725 = $725.
What is the UK mileage rate?
45p per mile for the first 10,000 business miles, then 25p per mile for cars and vans.
Does commuting count as business mileage?
Generally no. Regular travel between home and a regular workplace is a personal commute.
Can I claim mileage and fuel together?
Not under the standard mileage method, because the rate already covers fuel, wear, and other running costs.
Is mileage reimbursement taxable?
Reimbursement at or below the approved rate is generally not taxable. Amounts above it may be.
Do I need a mileage log?
Yes. Both the IRS and HMRC expect a record of your trips.
Is the mileage calculator free?
Yes. The free mileage calculator requires no sign-up.
Related Calculators
- Gas Mileage Calculator
- Fuel Cost Calculator
- Hours Calculator
- Day Counter
- Unit Converter
- Currency Converter
Final Thoughts
A mileage calculator takes the guesswork out of claiming driving costs. Use the right rate for your country and trip type, keep a trip log, and compare the standard and actual methods if your vehicle is costly to run. Start with the free mileage calculator, then confirm the current rates and rules with the IRS, HMRC, or a tax professional.
This article is for general informational purposes only and isn’t tax or legal advice. Mileage rates change regularly and rules vary by situation. Confirm current rates and requirements with IRS.gov, GOV.UK, or a qualified tax professional.