Financial Planning5 min read

How to Calculate Fuel Cost

Fuel expenses represent one of the largest ongoing operational costs of vehicle ownership. Calculating your cost per mile and trip costs enables accurate tax deductions, road trip cost sharing, and smart commuter budgeting.

Core Calculation Formula
Fuel Cost = (Distance Driven ÷ Vehicle MPG) × Fuel Price Per Gallon

Divide distance by MPG to find gallons needed, then multiply by the local gas price.

Worked Example: 750-mile road trip in a 25 MPG SUV with gas at $3.60/gal: (750 ÷ 25) × $3.60 = 30 gal × $3.60 = $108.00 ($0.144/mile)

How to Calculate Fuel Cost Per Mile

Calculating cost per mile tells you exactly how much every mile of driving costs in gasoline alone.

Formula: Cost Per Mile = Price Per Gallon ÷ Vehicle MPG.

Example: With gasoline at $3.50 per gallon and a car that achieves 28 MPG: $3.50 ÷ 28 = $0.125 per mile (12.5 cents).

If you drive 12,000 miles per year, your annual fuel budget is: 12,000 × $0.125 = $1,500.00.

How to Calculate Fuel Cost Per Kilometer

For metric calculations with fuel priced in liters:

Formula: Cost Per Kilometer = (L/100km ÷ 100) × Price Per Liter.

Example: If your car consumes 7.5 L/100km and petrol costs $1.60 per liter: (7.5 ÷ 100) × 1.60 = 0.075 × $1.60 = $0.12 per kilometer.

Calculating Round-Trip and Multi-Stop Trips

When budgeting for road trips, always factor in local destination driving (city driving while exploring your destination) which typically adds 10% to 20% more mileage than direct highway navigation distances.

Additionally, fuel prices vary drastically between states and highway rest stops. Planning fuel stops in low-tax jurisdictions can save $0.40 to $0.80 per gallon.

Ready to Calculate Your Fuel Numbers?

Use our free, client-side calculator to compute instant MPG, L/100km, fuel expenses, and conversion metrics.

Frequently Asked Questions

Divide 1,000 by your car’s highway MPG to get gallons required, then multiply by average fuel price. At 30 MPG, you need 33.33 gallons. At $3.50/gallon, the trip will cost $116.67.

Related Calculators