HMRC's approved mileage rate is 45p per mile for the first 10,000 business miles in a tax year (25p after), covering fuel and running costs, and can be claimed as an expense. Actual-fuel mode estimates fuel only. For a return trip, enter the round-trip miles.
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This calculator works out the cost of a journey two ways: the HMRC approved mileage claim, and the actual fuel burned. Enter the miles and pick a method, and it returns the figure you can claim as an expense or build into a quote.
It is for tradespeople who drive to jobs and want travel properly costed, rather than swallowed. Whether you are claiming mileage against tax or pricing a call-out to a job an hour away, knowing the real number stops travel quietly eating your margin.
The HMRC method applies the approved rate per mile, which covers fuel and running costs. The actual method works out the fuel alone from your vehicle's economy and the pump price.
HMRC: cost = miles × rate; Actual fuel: litres = (miles ÷ mpg) × 4.546, cost = litres × price
The HMRC method multiplies the miles by the approved per-mile rate — 45p for the first 10,000 business miles a year — which is designed to cover fuel plus wear, insurance and depreciation. The actual method converts miles to gallons using your mpg, converts to litres, and multiplies by the pump price to give fuel cost only.
Pick HMRC rate to work out the mileage you can claim against tax, or actual fuel to estimate just the fuel a journey burns.
Type the distance. For a job you drive to and from, enter the round-trip miles so travel is fully costed.
For HMRC mode, confirm the per-mile rate. For actual mode, enter your vehicle's mpg and the fuel price in pence per litre.
The calculator shows the mileage claim, or the fuel used and its cost with a cost-per-mile figure.
The HMRC rate is more generous than fuel alone, on purpose. At 45p a mile it covers not just fuel but the running costs of the vehicle — insurance, servicing, tyres and depreciation — which is why it is usually worth claiming the approved mileage rather than actual fuel if you use your own vehicle for work.
Mind the 10,000-mile cliff edge. The 45p rate applies only to the first 10,000 business miles in a tax year; above that it drops to 25p a mile. If you cover big distances, that lower rate changes your travel economics, so track your annual business mileage.
Build travel into quotes, not just tax returns. A job an hour away can carry an hour or more of unpaid driving each way; costing that with this tool and folding it into the price stops distant jobs from being loss-makers. This is a guide, not tax advice — keep a mileage log to support any claim.
HMRC's approved mileage rate is 45p per mile for the first 10,000 business miles in a tax year (25p after), covering fuel and running costs, and can be claimed as an expense. Actual-fuel mode estimates fuel only. For a return trip, enter the round-trip miles.
For cars and vans it is 45p per mile for the first 10,000 business miles in a tax year, then 25p per mile above that. The rate is designed to cover fuel plus running costs like insurance, servicing and depreciation, and you claim it as a business expense with a mileage log to back it up.
If you use your own vehicle for work, the approved mileage rate is usually better, because 45p a mile covers far more than the fuel alone. Claiming actual costs means claiming a proportion of all vehicle running costs and is generally only worthwhile for higher-cost vehicles — and you must stick with one method per vehicle.
Divide the miles by your mpg to get gallons, multiply by 4.546 to get litres, then multiply by the pump price per litre. For example 35 mpg at 145p a litre is about 18.8p a mile in fuel. The actual-fuel mode above does this for you.
Yes — many trades build travel into the price or add a call-out charge, particularly for jobs outside their usual area. Costing the round-trip mileage with this tool gives you a defensible figure to include, so distant jobs cover the driving time and fuel rather than eroding your margin.
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