Vehicle Cost Calculator

Calculate the true cost of using your vehicle for gig work, including often-overlooked expenses like depreciation and accelerated maintenance.

Cost per mileDepreciation impactAnnual vehicle costsCompare to IRS rate

How to Use This Calculator

1.Enter your vehicle's value and age
2.Add annual mileage for gig work
3.Enter MPG and current gas price
4.See your true cost per mile

Your Vehicle

Current Vehicle Value

Fuel Efficiency

MPG

Gig Miles Per Year

Your Vehicle Costs

Cost Per Mile

$0.45

Monthly Cost

$744.44

Yearly Cost

$8,933.33

IRS Rate

$0.67

Annual Cost Breakdown

Gas

20000 miles at 30 MPG

$2,333.33

Depreciation

Vehicle value loss

$3,000.00

Maintenance

Oil, tires, brakes, repairs

$1,800.00

Insurance

$1,800.00

Total Annual Cost

$8,933.33

Your Cost vs IRS Rate

IRS allows $0.67/mile deduction for 2024

Save $0.22/mi

Track every gig mile from day one. Apps like Everlance or Stride can automate this and save you thousands in tax deductions.

Efficient Vehicle

Your costs are well below the IRS rate. The standard mileage deduction gives you a larger tax benefit than actual expenses.

Vehicle Cost Tracking

•The IRS mileage rate for 2024 is $0.67/mile
•Actual expense method may save more on taxes
•Depreciation is often the biggest hidden cost

Compare mileage vs actual expense methods

Understanding Vehicle Costs

The Depreciation Trap: Many drivers focus on gas costs but ignore depreciation. A $25,000 car losing 15% value annually is costing you $3,750/year before you buy a drop of gas.

Accelerated Wear: Gig driving puts extra wear on brakes, tires, oil, and suspension due to frequent stops. Expect maintenance costs 20-50% higher than regular driving.

Optimal Vehicles: Used hybrids (Toyota Prius, Honda Insight) often have the lowest total cost of ownership for gig work. High MPG, reliable, and already depreciated.

Calculate rideshare earnings →Estimate tax deductions →

Common Questions

What is the true cost per mile of driving?

For most vehicles, total cost is $0.30-0.60/mile including gas ($0.08-0.15), depreciation ($0.15-0.25), maintenance ($0.05-0.10), and insurance allocation ($0.02-0.05). Newer, more expensive vehicles cost more per mile.

Why does depreciation matter for gig driving?

Depreciation is often the largest hidden cost. A $20,000 car driven 20,000 miles/year for gig work might depreciate $4,000 annually - that's $0.20/mile. Many drivers don't realize they're essentially spending their car's value.

What is the IRS mileage deduction rate?

The 2024 IRS standard mileage rate is $0.67/mile. This rate is designed to cover all vehicle costs including gas, depreciation, maintenance, and insurance. For most gig drivers, this deduction significantly reduces taxable income.

Should I buy a new or used car for gig work?

Used vehicles (3-5 years old) are typically more cost-effective for gig work. They've already absorbed major depreciation. Focus on reliability and fuel efficiency - a used Toyota Prius is a popular choice.

Vehicle costs vary based on make, model, age, and driving conditions. Depreciation estimates are averages. Consult a mechanic for accurate maintenance projections for your specific vehicle. This is not financial advice.