12,000 business miles at $0.67
- Standard ≈ 12,000 × 0.67 = $8,040
- Actual (4,000 costs × 80%) = $3,200 → Standard wins
finance calculator
Mileage vs Actual Expenses Calculator
Compare standard mileage deduction vs actual vehicle expenses to see which yields a larger deduction.
Results
- Standard mileage deduction
- $8,040
- Actual expense deduction
- $4,800
How to use this calculator
- Enter business miles driven and the current standard mileage rate.
- Enter your actual annual vehicle costs and business-use percentage.
- Compare the two deductions side by side.
Inputs explained
- Standard mileage rate
- IRS rate per business mile for the current year.
- Depreciation/lease
- Include allowable depreciation or lease payments (actual method only).
- Business use %
- Percent of total vehicle use that is business (exclude commuting).
How it works
Standard mileage = business miles × standard mileage rate.
Actual expenses = (gas + maintenance + insurance + depreciation + other) × business-use %. Deduct whichever method yields more (subject to IRS rules).
Formula
Standard = Miles × Rate Actual = (Gas + Maintenance + Insurance + Depreciation + Other) × Business use %
When to use it
- Choosing between mileage vs actual for Schedule C or employee mileage reimbursements (where applicable).
- Deciding if keeping receipts for actual costs is worth it versus using the standard rate.
- Planning record-keeping (mileage log vs expense tracking).
Tips & cautions
- Standard method requires starting with it in year 1 for a vehicle if you want the option to switch later (subject to IRS rules).
- For high-expense or low-mileage vehicles, actual may win; for high-mileage/low-cost, standard often wins.
- Maintain a mileage log for the business-use percentage and IRS substantiation.
- Simplified; does not enforce IRS switching rules between methods.
- Depreciation rules and caps not modeled; uses a direct input instead.
- State/local rules may differ; consult a tax pro for specifics.
Worked examples
6,000 miles, high costs
- Standard ≈ $4,020
- Actual (6,500 costs × 80%) ≈ $5,200 → Actual wins
Deep dive
Compare the IRS standard mileage deduction versus actual vehicle expenses to see which saves more on taxes.
Enter business miles and real costs (gas, maintenance, insurance, depreciation) plus business-use % for a side-by-side result.
FAQs
- Can I switch methods each year?
- IRS rules vary. If you use standard in the first year the car is in service, you can often switch later; depreciation rules apply. Check IRS guidance.
- Does commuting count?
- No. Commuting miles are not business miles. Only business use counts for either method.
- Do I need receipts with the standard mileage method?
- You still need a mileage log, but you don’t need to track every actual expense if you use the standard method.
- Are parking and tolls included?
- This calculator groups them in other actual costs; parking/tolls related to business can be deductible in addition to the mileage rate.
- Is depreciation capped?
- Yes. This simplified model takes your entered depreciation; actual tax depreciation has caps and rules.
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Simplified comparison. Does not enforce all IRS rules, depreciation caps, or switching limitations. Consult a tax professional for compliance.