At late-July 2026 UK fuel prices, a petrol car returning 40mpg costs approximately 17.8p per mile in fuel alone, while a diesel car returning the same 40mpg costs around 19.7p per mile. Those calculations use average prices of 156.19p per litre for unleaded and 173.15p per litre for diesel. Insurance, depreciation, servicing, tyres and repairs are not included.
That difference between fuel cost and total ownership cost is important. A simple cost per mile calculator can tell you what you spend on petrol, diesel or electricity, but a complete calculation must include the other costs of keeping a vehicle on the road.
The same principle applies to taxis and private hire vehicles. A passenger can divide the fare by the journey distance, while a driver must account for vehicle expenses, licensing, insurance, platform charges, waiting time and miles travelled without a passenger.
This guide explains each calculation with clear UK examples.
Why Is Cost Per Mile More Useful Than a Tank or Trip Total?
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Knowing that you spent £70 filling the tank does not tell you whether your car is economical. The result depends on how many miles that fuel produces.
Calculating the cost per mile gives you a standard figure that can be used to:
- Compare petrol, diesel and electric vehicles
- Estimate the cost of a planned journey
- Set a realistic business mileage budget
- Compare driving with taxi or public transport fares
- Calculate taxi-driver operating costs
- Check whether mileage reimbursement covers your expenses
- Track whether your vehicle is becoming more expensive to run
For London journeys, the guide to the cheapest way to get around London compares when walking, Tube, bus, taxi or private hire makes the most sense.
Before figuring cost per mile, decide which type of cost you need.
| Calculation | What It Includes | Best Used For |
| Fuel cost per mile | Petrol or diesel only | Journey estimates |
| EV energy cost per mile | Electricity only | Charging comparisons |
| Full car cost per mile | Fuel, depreciation, insurance, maintenance and other costs | Ownership and business budgeting |
| Passenger taxi cost per mile | Total fare divided by trip distance | Comparing taxi journeys |
| Taxi-driver cost per paid mile | Total business costs divided by passenger miles | Pricing and profitability |
These figures should not be treated as interchangeable. A car using 18p of fuel per mile may have a total operating cost of 40p, 50p or more after ownership expenses are included.
If you want a route-specific estimate before travelling, the London taxi fare calculator can help you compare fixed-price journey costs before booking.
Cost Per Mile Calculator Formulas
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The appropriate formula depends on the vehicle and the type of cost being measured.
1. Petrol or Diesel Formula
For UK vehicles using imperial miles per gallon:
| Fuel cost per mile in pence = Fuel price in pence per litre × 4.54609 ÷ MPG |
The figure 4.54609 converts one imperial gallon into litres. HMRC uses the same relationship when calculating its advisory fuel-rate tables.
For example:
- Petrol price: 156.19p per litre
- Vehicle economy: 40mpg
- Calculation: 156.19 × 4.54609 ÷ 40
- Result: 17.75p per mile
To estimate the journey cost:
| Journey cost = Cost per mile × Journey distance |
A 120-mile trip would therefore cost:
£0.1775 × 120 = approximately £21.30
2. Electric Vehicle Formula
EV cost per mile in pence = Electricity price in pence per kWh ÷ Miles per kWh
Example:
- Electricity price: 26.11p per kWh
- Vehicle efficiency: 3.59 miles per kWh
- Calculation: 26.11 ÷ 3.59
- Result: 7.27p per mile
Ofgem’s average electricity unit rate under the price cap for customers paying by Direct Debit is 26.11p per kWh from 1 July to 30 September 2026. Actual rates vary by region, payment method and electricity tariff.
3. Full Car Running-Cost Formula
Car cost per mile = Total annual vehicle costs ÷ Annual mileage
Include:
- Fuel or electricity
- Depreciation
- Finance interest
- Insurance
- Vehicle Excise Duty
- MOT
- Servicing
- Repairs
- Tyres
- Breakdown cover
- Parking permits or other regular vehicle expenses
The AA similarly calculates annual running costs by adding the relevant vehicle expenses and dividing the total by annual mileage.
4. Taxi Passenger Formula
Taxi cost per mile = Total fare ÷ Journey miles
For example:
- Fare: £18
- Distance: 6 miles
- Effective passenger cost: £3 per mile
This does not mean the taxi company has a fixed £3-per-mile tariff. The total may also reflect the minimum fare, journey time, traffic, waiting, booking charges and demand.
This is also the simplest way to compare a fixed quote with other options. The London taxi fare calculator can help you estimate the full journey price first, then you can divide that figure by the mileage if you want an effective per-mile comparison.
1. Petrol Cost Per Mile Calculator
Petrol cost depends mainly on two changing inputs:
- The price paid per litre
- The vehicle’s real-world MPG
Using the late-July 2026 UK average petrol price of 156.19p per litre, the following table shows several common examples.
| Petrol Efficiency | Fuel Cost Per Mile | Cost Over 100 Miles |
| 26mpg cost per mile | 27.31p | £27.31 |
| 30mpg cost per mile | 23.67p | £23.67 |
| 40mpg cost per mile | 17.75p | £17.75 |
| 50mpg cost per mile | 14.20p | £14.20 |
| 60mpg cost per mile | 11.83p | £11.83 |
| 70mpg cost per mile | 10.14p | £10.14 |
A move from 30mpg to 50mpg reduces fuel expenditure by approximately 9.47p per mile at this fuel price. Over 10,000 miles, that represents about £947.
Use Real MPG Where Possible
The official or advertised MPG is useful for comparisons, but your calculation will be more accurate when based on actual fuel use.
A reliable method is:
- Fill the tank completely.
- Reset the trip counter.
- Drive normally.
- Refill the tank completely.
- Record the litres purchased and miles travelled.
- Calculate:
| Actual MPG = Miles travelled ÷ Litres used × 4.54609 |
Real fuel economy may be affected by traffic, short journeys, weather, tyre pressure, vehicle load, driving speed and mechanical condition.
2. Diesel Cost Per Mile Calculator
Diesel vehicles often achieve better MPG than comparable petrol vehicles, but diesel is not automatically cheaper per mile. The result depends on both efficiency and pump price.
Using the late-July 2026 diesel average of 173.15p per litre gives these examples.
| Diesel Efficiency | Fuel Cost Per Mile | Cost Over 100 Miles |
| 26mpg | 30.28p | £30.28 |
| 30mpg | 26.24p | £26.24 |
| 40mpg | 19.68p | £19.68 |
| 50mpg | 15.74p | £15.74 |
| 60mpg | 13.12p | £13.12 |
| 70mpg | 11.25p | £11.25 |
At these prices:
- A 40mpg petrol vehicle costs about 17.75p per mile.
- A 50mpg diesel vehicle costs about 15.74p per mile.
- The diesel saves approximately 2.01p per mile on fuel.
- Over 10,000 miles, the fuel saving would be about £201.
That saving must still be weighed against the purchase price, servicing, insurance, depreciation and possible repair costs.
Calculating Older Vehicle Costs
A search such as 2007 Ford Transit cost per mile cannot be answered accurately from the model year alone. You also need:
- Exact engine and fuel type
- Current real-world MPG
- Local fuel price
- Annual mileage
- Purchase price and depreciation
- Insurance
- Servicing and repair history
- Tyre costs
- Vehicle tax and MOT expenses
The same applies to a 2005 2.4-litre Transit, an older Astra or a small 1-litre Yaris. Two examples of the same model can have very different costs because of condition, mileage, workload and repair requirements.
3. EV Cost Per Mile Calculator
Electric vehicles are calculated using electricity consumption rather than MPG.
Suppose an EV averages 3.59 miles per kWh.
| Charging Price | Energy Cost Per Mile | Cost Over 100 Miles |
| 26.11p per kWh | 7.27p | £7.27 |
| 40p per kWh | 11.14p | £11.14 |
| 54p per kWh | 15.04p | £15.04 |
| 70p per kWh | 19.50p | £19.50 |
HMRC’s advisory electric rates from 1 June 2026 are 7p per mile for home charging and 15p per mile for public charging. Its supporting calculation uses an average efficiency of 3.59 miles per kWh, with electricity costs of 26.90p per kWh at home and 54p per kWh for slower public charging.
Petrol Versus Home-Charged EV Example
Using the earlier examples:
- Petrol car at 40mpg: 17.75p per mile
- EV at 3.59 miles per kWh and 26.11p per kWh: 7.27p per mile
- Difference: 10.48p per mile
Over 10,000 miles, the EV would use approximately £1,048 less in energy.
This is an energy-only comparison. A complete cost per mile calculator must also compare purchase price, depreciation, insurance, finance, servicing, tyres and any home-charger installation costs.
Use Electricity Drawn From the Charger
For a more accurate result, use the electricity recorded by the home charger or charging provider rather than relying only on the vehicle’s dashboard.
This helps account for charging losses and the energy used during battery conditioning. Standing charges are normally excluded from the marginal charging calculation because they may be payable even when the vehicle is not charged.
4. Taxi Cost Per Mile UK | Why There Is No Single National Rate
There is no universal taxi cost per mile UK figure.
Hackney carriage fares are normally controlled through local licensing arrangements and measured by a meter. Private hire and minicab prices may instead be agreed or shown before the journey. Government passenger guidance states that the meter should be used within the licensed area unless an alternative permitted fare has been agreed.
This means the taxi cab cost per mile can vary according to:
- Town or licensing authority
- Minimum or starting fare
- Distance
- Journey duration
- Traffic and waiting time
- Time of day
- Weekend or public-holiday tariff
- Booking fee
- Airport or congestion charges
- Vehicle type
- Fixed, metered or app-based pricing
A short central London trip, an airport run, a metered black cab and a pre-booked minicab can all produce very different effective rates. For a deeper taxi-specific breakdown, read the guide to taxi cab rates per mile.
London Taxi Cost Examples
Transport for London’s taxi fare card, effective from 25 April 2026, shows that the meter calculates the maximum fare using distance, time taken and time of day. It also sets a £4.40 minimum fare.
Typical weekday daytime examples are:
| Distance | Typical Fare | Effective Cost Per Mile |
| 1 mile | £8.40 to £13.00 | £8.40 to £13.00 |
| 2 miles | £12.60 to £20.20 | £6.30 to £10.10 |
| 4 miles | £21.00 to £31.00 | £5.25 to £7.75 |
| 6 miles | £33.00 to £42.00 | £5.50 to £7.00 |
These figures demonstrate why simply asking how much does a taxi cost per mile may not produce one fixed answer. Short trips often have a higher effective rate because the minimum fare and time element are spread across fewer miles.
Delays and heavy traffic can also increase the final meter total.
If the journey is likely to involve traffic, airport access or a longer route, the guide to flat rates vs metered airport taxis explains why a fixed fare can be easier to budget than a running meter.
5. Minicab Cost Per Mile
A minicab cost per mile calculation is normally based on the full quoted or charged price:
| Minicab cost per mile = Total booking price ÷ Journey distance |
For example:
- Quoted price: £28
- Journey distance: 10 miles
- Effective cost: £2.80 per mile
Private hire vehicles must be booked through an operator rather than hailed in the street. In London, licensed private hire operators must provide a fare estimate unless a fixed fare has already been agreed.
If you are unsure about the difference, the guide to private hire vs taxi drivers explains how black cabs, private hire vehicles and app-based rides differ in booking, pricing and availability.
When comparing operators, check whether the quote includes:
- Pickup charges
- Waiting time
- Airport fees
- Parking
- Tolls
- Additional stops
- Larger vehicle charges
- Late-night pricing
Therefore, the answer to how much does a cab cost per mile should be based on the complete fare rather than a headline mileage rate.
6. Uber Cost Per Mile
There is no single nationwide Uber cost per mile.
Uber explains that its UK upfront price can use estimated trip duration, distance, time of day, route and demand patterns. Traffic and changing demand can therefore affect the price shown for two otherwise similar journeys.
To find the effective rate after receiving a quote:
| Uber cost per mile = Upfront fare ÷ Estimated journey miles |
Example:
- Upfront fare: £18
- Estimated journey: 6 miles
- Effective rate: £3 per mile
However:
- £18 over 3 miles equals £6 per mile.
- £18 over 9 miles equals £2 per mile.
This is why how much does Uber cost per mile cannot be answered from the fare or journey time alone.
The taxi cab vs Uber guide compares app-based pricing with more traditional taxi and private hire options.
How Much Does a 20 Minute Uber Cost Per Mile?
A 20-minute journey does not contain enough information to calculate the result.
Consider two journeys:
| Journey | Fare | Distance | Effective Cost Per Mile |
| Slow city-centre trip | £16 | 3 miles | £5.33 |
| Faster suburban trip | £16 | 7 miles | £2.29 |
Both could take 20 minutes, but their mileage is different. Traffic, pickup location, route, demand and vehicle category can also change the upfront price.
To answer how much does a 20 minute Uber cost per mile, divide the app’s quoted fare by its estimated route mileage.
7. My London Transfer Cost Per Mile
My London Transfer does not advertise every journey through one standard per-mile rate. Instead, passengers enter their pickup point, destination, travel time and other journey details to receive a quote for the complete transfer.
The airport-transfer fares are confirmed at booking and are not increased because of traffic delays or surge pricing. This makes the total quoted price more useful than a general taxi cost per mile estimate when planning an airport journey.
You can still use a cost per mile calculator to convert your My London Transfer quote into an effective per-mile figure:
| Effective transfer cost per mile = Total quoted fare ÷ Journey distance |
For example, consider an illustrative transfer with:
- Total quoted fare: £72
- Journey distance: 30 miles
- Calculation: £72 ÷ 30
- Effective cost: £2.40 per mile
This calculation is useful when comparing the complete transfer with another private hire, taxi or app-based option. However, it does not mean that My London Transfer charges a standard £2.40 for every mile. The actual quote depends on the journey details and the vehicle selected.
The London taxi fare calculator lets you check an actual route before converting the total quote into an effective cost per mile.
What Is Included in the Transfer Service?
According to My London Transfer, its airport-transfer service includes:
- Upfront fixed pricing
- No surge pricing
- Real-time flight monitoring
- Meet-and-greet at airport arrivals
- Licensed and vetted drivers
- 24-hour availability
- Economy, executive and larger vehicle options
The service covers Heathrow, Gatwick, Stansted, Luton and London City Airport. For airport pickups, the driver monitors the flight and adjusts the collection time when the flight arrives early or is delayed.
Compare the Complete Quote, Not Mileage Alone
When comparing My London Transfer with another cab cost per mile, review what each quoted fare includes. Check:
- The selected vehicle and passenger capacity
- Available luggage space
- Airport pickup arrangements
- Meet-and-greet service
- Flight-delay monitoring
- Waiting-time terms
- Additional stops
- Child-seat or other optional charges
- Parking or airport access charges
- Cancellation conditions
The My London Transfer booking form displays the available vehicles, journey distance, estimated trip time, base fare, optional seat charges, discounts, VAT where applicable and the total payable amount. This allows you to review the full price before completing the booking.
If airport access fees are part of the journey, the guide on how to pay the Gatwick drop-off charge explains why drop-off and pickup costs should be checked inside the complete fare.
A per-mile calculation can help with comparison, but the final decision should consider convenience, vehicle suitability and the services included in the confirmed fare.
A lower per-mile figure is not always better if airport fees, waiting time, luggage space, child seats or pickup arrangements are unclear. The guide to airport taxi hacks focuses on avoiding surprise costs and poor airport taxi choices.
8. Full Car Cost Per Mile Example
Fuel alone does not show the true car cost per mile.
Consider an illustrative petrol vehicle covering 12,000 miles a year at 40mpg:
| Annual Expense | Example Amount |
| Fuel | £2,130 |
| Depreciation | £2,000 |
| Insurance | £800 |
| Vehicle tax and MOT | £300 |
| Servicing, repairs and tyres | £900 |
| Finance interest and breakdown cover | £400 |
| Total | £6,530 |
Calculation:
| £6,530 ÷ 12,000 miles = £0.544 per mile |
The complete running cost is therefore approximately 54.4p per mile, even though the petrol portion is only about 17.8p.
This example also shows why a cheaper vehicle may not always have the lowest per-mile cost. A car with poor fuel economy or frequent repairs can cost more over time than a more expensive but efficient and reliable alternative. You can read our guide to benefits of using taxi services while comparing transport choices.
9. Taxi-Driver Cost Per Paid Mile
Taxi and private hire drivers should perform two separate calculations. Passenger-facing fares and driver-side operating costs are not the same thing, because unpaid mileage, waiting time, insurance, cleaning, licensing and platform charges all affect profitability. For readers who want the passenger-side comparison first, read the guide on taxi cab rates per mile.
i. Cost Per Road Mile
| Total vehicle and business costs ÷ Total miles driven |
This includes paid journeys, pickups, repositioning and returning without a passenger.
ii. Cost Per Paid Mile
| Total vehicle and business costs ÷ Passenger-carrying miles |
Suppose a driver records:
- Total annual costs: £16,000
- Total road mileage: 20,000 miles
- Passenger mileage: 14,000 miles
- Annual fare revenue: £32,200
The results would be:
- Operating cost per total road mile: 80p
- Operating cost per paid mile: £1.14
- Revenue per paid mile: £2.30
- Difference before tax and the value of the driver’s working time: £1.16 per paid mile
The second calculation is more useful for pricing because unpaid mileage still has to be funded by fare-earning journeys.
Taxi businesses should include:
- Hire-and-reward insurance
- Licensing and inspections
- Fuel or charging
- Maintenance and tyres
- Depreciation or vehicle rental
- Platform or dispatch charges
- Cleaning
- Accountancy
- Card-processing charges
- Unpaid pickup and return mileage
- Time spent waiting for bookings
HMRC Mileage Rates Are Not Your Actual Cost
For the 2026 to 2027 tax year, HMRC’s approved mileage amount for employees using their own cars or vans is:
- 55p per mile for the first 10,000 business miles
- 25p per mile after 10,000 business miles
These are tax and reimbursement benchmarks. They do not prove that every vehicle costs exactly 55p per mile.
Your actual result may be lower or higher depending on the car, annual mileage, depreciation, finance and maintenance.
For example:
- A reliable, owned small car covering high annual mileage may cost less.
- A newer financed car with high depreciation may cost considerably more.
- A taxi covering many miles may have low fixed costs per mile but higher insurance and maintenance costs.
An AA cost per mile calculation based on real annual expenditure is therefore useful when you need your personal ownership cost rather than a standard mileage rate.
Why Old Cost-Per-Mile Figures Become Unreliable?
A saved 2021 cost per mile, 2022 cost per mile or 2024 cost per mile estimate should not automatically be used for a current journey.
The following inputs can change:
- Fuel prices
- Electricity tariffs
- Insurance premiums
- Vehicle value and depreciation
- Finance costs
- Repair and servicing prices
- Tyre prices
- Mileage reimbursement rates
- Taxi tariffs
HMRC’s historical advisory tables show that petrol, diesel and electric mileage rates have changed repeatedly between 2021 and 2026.
Update the calculator whenever one of the main inputs changes significantly.
Conclusion
A reliable cost per mile calculator begins with the correct formula and realistic inputs.
For petrol and diesel vehicles, multiply the price per litre by 4.54609 and divide it by actual MPG. For an EV, divide the electricity price per kWh by miles per kWh. And for full ownership costs, add every annual vehicle expense and divide the total by annual mileage.
Taxi and private hire calculations require an additional distinction. Passengers should divide the complete fare by journey miles, while drivers should calculate both the cost per road mile and the cost per paid passenger mile.
The final figure is most useful when it reflects current prices, real vehicle efficiency and all relevant expenses, rather than relying on an old MPG claim or a standard mileage allowance.
Want to Compare Taxi Costs Before You Travel?
Use the formula first, then check the real route price. My London Transfer offers fixed-price airport, station and city transfers across London, with upfront quotes, vehicle options and no surge pricing once your booking is confirmed. Enter your pickup and destination, review the full fare, then divide it by the journey distance if you want your effective cost per mile.
Frequently Asked Questions (FAQs)
1. How Much Does a Taxi Cost Per Mile?
There is no fixed national amount. Divide the final fare by the number of journey miles to find the effective rate. Metered fares may also reflect time, waiting and local tariffs.
2. How Much Does a Cab Cost Per Mile?
For a pre-booked cab or minicab, divide the full quoted fare by the estimated route distance. Check whether airport fees, waiting, tolls or booking charges are included.
3. How Much Does Uber Cost Per Mile?
Divide the upfront fare by the estimated journey mileage. Uber does not use one fixed nationwide per-mile price because the quote may consider distance, journey time, traffic, route and demand.
4. Is 50mpg Good for Cost Per Mile?
At a petrol price of 156.19p per litre, 50mpg produces a fuel cost of approximately 14.20p per mile. At a diesel price of 173.15p per litre, it produces approximately 15.74p per mile.
5. Does the Cost Per Mile Include Insurance?
Only when calculating the full ownership or business cost. A basic petrol, diesel or EV calculation normally covers fuel or electricity alone.
6. How Often Should I Update the Calculation?
Update it when fuel prices, charging rates, insurance, annual mileage or major ownership costs change. Taxi businesses may benefit from reviewing it monthly because fuel prices, platform charges and working mileage can change quickly.
