Mileage Calculator Work Out Your Mileage Deduction or Reimbursement (2026 Rates)

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.

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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.