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§ 01 / ARTICLE

Cents Per Mile. The Budget Number.

CATEGORY NUMBERSREAD 3 MINPUBLISHED APR 21, 2026

Your dashboard shows MPG. It doesn’t show the number that actually matters for your wallet: cents per mile. One division — price ÷ MPG — and every trip, commute, or car comparison becomes a dollar figure instead of an efficiency score.

The formula

cost per mile = price per gallon ÷ MPG. At $4.00/gallon:

  • 15 MPG (truck / SUV) — $0.267/mile, or 27¢.
  • 25 MPG (average sedan) — $0.160/mile, or 16¢.
  • 35 MPG (efficient sedan) — $0.114/mile, or 11.4¢.
  • 50 MPG (hybrid) — $0.080/mile, or 8¢.
  • EV at 3.5 mi/kWh, $0.15/kWh — $0.043/mile, or 4.3¢.

Why fleet managers live by this

A delivery company running 200 trucks 30,000 miles each per year is moving 6 million miles. A 1¢/mile improvement is $60,000/year. That’s why fleet vehicle purchases, route optimization, and maintenance decisions are all benchmarked in cents per mile, not MPG. The same logic scales down to one driver — just with smaller totals.

Your personal number

Two cars at 22 vs 32 MPG, $4 gas, 12,000 miles/year: 18.2¢/mile × 12k = $2,180 vs 12.5¢/mile × 12k = $1,500. That’s $680/year, or $6,800 over a decade. Whether that matters depends on other costs — but at least you’re comparing dollars to dollars instead of trying to do MPG math in your head.

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§ 02 / FAQ

Questions. Answered.

How do I calculate cost per mile?+
Divide the price per gallon by your MPG. At $4/gallon and 25 MPG, that’s $0.16/mile (16¢). Multiply by your annual miles to get annual fuel cost: 12,000 miles × $0.16 = $1,920/year.
Why is this better than MPG alone?+
Because it’s already in dollars. Two cars at 22 vs 32 MPG at $4 gas = 18¢/mile vs 12.5¢/mile. Over 12k miles, that’s $660/year. MPG doesn’t give you that number directly; cost per mile does. It’s the right metric for comparing two vehicles or budgeting trips.
How does this compare to EV cost per mile?+
EVs typically run 4–8¢/mile at US residential electric rates (~$0.15/kWh, 3–4 mi/kWh). A 25 MPG gas car at $4/gal is 16¢/mile — 2–4× more. The gap narrows at public fast-charger prices but rarely closes.
What about maintenance cost per mile?+
Typical gas car: 6–10¢/mile for maintenance + tires over the vehicle’s life (AAA data). Add that to fuel and you’re at 20–30¢/mile in operating cost alone, before depreciation, insurance, and registration.
§ 03 / TOOLS

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