Car Cost Per Mile UK
Van Cost Per Mile
Car cost per mile, often shown as pence per mile or PPM, is one of the clearest ways to understand how much a car really costs to run. Instead of only looking at fuel costs, cost per mile combines the main ownership costs and spreads them across the miles you drive.
This can help you compare petrol, diesel, hybrid and electric cars more fairly, especially when annual mileage, depreciation and maintenance costs vary between vehicles.
What Is Car Cost Per Mile?
Car cost per mile is the total cost of running a car divided by the number of miles driven. It is usually shown in pence per mile.
For example, if a car costs £6,000 to run over 12,000 miles, the cost is 50p per mile (£6,000 / 12,000 miles).
What Costs Are Included?
A useful cost-per-mile calculation should include more than fuel. DriveSmart running cost calculations include key costs such as:
- Depreciation (the difference between purchase price and forecast sale value)
- Fuel costs (petrol/diesel or electricity)
- Servicing, maintenance and repair
- Vehicle excise duty where applicable
Why Annual Mileage Matters
Annual mileage can significantly change car cost per mile. At lower mileage, depreciation can dominate because the car loses value even if it is not driven very far. At higher mileage, fuel, electricity and maintenance costs become more important.
This is why the cheapest car at 5,000 miles per year may not be the cheapest at 20,000 or 30,000 miles per year.
You can also view our cheapest cars to run in the UK by annual mileage.
Simple Car Cost Per Mile Formula
The basic formula is:
Total running costs ÷ total miles = cost per mile
To convert pounds per mile into pence per mile, multiply the result by 100.
Example Cost Per Mile Calculation
If a car costs £15,000 to run over 36,000 miles, the calculation is:
£15,000 ÷ 36,000 miles = £0.416 per mile
This means the car costs approximately 41.6p per mile.
Fuel Cost Per Mile vs Total Cost Per Mile
Fuel cost per mile only looks at petrol, diesel or electricity. Total cost per mile is more useful because it also includes depreciation and maintenance.
A car with low fuel costs may still have a higher total cost per mile if depreciation or servicing costs are high.
Related Car Running Cost Guides
Frequently Asked Questions
What is a good cost per mile for a car?
A good cost per mile depends on the type of car, annual mileage, fuel type and ownership period. Smaller cars and efficient electric cars often have lower cost-per-mile figures, but depreciation and maintenance should also be included.
Is fuel cost per mile the same as car cost per mile?
No. Fuel cost per mile only includes petrol, diesel or electricity. Car cost per mile should also include depreciation, servicing, maintenance and other running costs.
Why does mileage affect pence per mile?
Mileage affects cost per mile because some costs increase with use, while others, such as depreciation, are spread across the miles driven.
Can I calculate car cost per mile online?
Yes. The DriveSmart car running costs calculator can estimate cost per mile based on annual mileage, ownership term, depreciation, maintenance and fuel or electricity costs.