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Price Per Mile Formula:
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Price per mile calculation is a simple yet essential financial metric used to determine the cost efficiency of transportation, delivery services, or personal vehicle usage. It helps individuals and businesses understand the cost associated with each mile traveled.
The calculator uses the simple formula:
Where:
Explanation: This calculation divides the total cost by the number of miles to determine the cost per mile, providing a standardized metric for cost comparison.
Details: Calculating price per mile is crucial for budgeting, pricing services, evaluating transportation efficiency, and making informed financial decisions related to vehicle usage and transportation costs.
Tips: Enter the total cost in GBP and the distance in miles. Both values must be positive numbers greater than zero for accurate calculation.
Q1: What is a good price per mile in the UK?
A: This varies depending on vehicle type, fuel prices, and purpose. For personal cars, it's typically between £0.45-£0.60 per mile, while commercial rates may differ.
Q2: Does this include all vehicle expenses?
A: For accurate cost analysis, you should include fuel, maintenance, insurance, depreciation, and other related expenses in your total cost calculation.
Q3: How often should I calculate my price per mile?
A: Regular calculation is recommended, especially when fuel prices change significantly or after major vehicle maintenance.
Q4: Can I use this for business expense claims?
A: Yes, this calculation is commonly used for business mileage claims, though HMRC has specific approved mileage rates for different vehicles.
Q5: How does electric vehicle cost per mile compare to petrol/diesel?
A: Electric vehicles typically have a lower cost per mile due to cheaper electricity vs fuel and lower maintenance costs, though initial purchase price is often higher.