Mileage Reimbursement Calculator
2024 IRS Standard Rate is $0.67 per mile.
Calculation Summary
Total Amount: $0.00
How to Calculate Mileage Reimbursement
Calculating your mileage reimbursement is essential for employees and business owners to ensure accurate tax deductions and fair compensation for vehicle wear and tear. The standard formula is straightforward:
Total Miles Driven × Reimbursement Rate = Total Reimbursement
IRS Standard Mileage Rates for 2024
Every year, the IRS adjusts the standard mileage rates based on the costs of operating a vehicle (gas, insurance, depreciation). For 2024, the rates are:
- Business: 67 cents per mile driven for business use.
- Medical/Moving: 21 cents per mile (for qualified active-duty members of the Armed Forces).
- Charitable: 14 cents per mile in service of charitable organizations.
Example Calculation
If you drove 450 miles for a business trip in 2024, your calculation would look like this:
- Miles: 450
- Rate: $0.67
- Math: 450 × 0.67 = $301.50
- Total Reimbursement: $301.50
Fixed vs. Variable Costs in Mileage Rates
Why is the rate so much higher than just the price of gasoline? The rate is designed to cover two types of expenses:
- Variable Costs: Fuel, oil changes, tire replacements, and routine maintenance.
- Fixed Costs: Insurance, registration fees, and the largest factor—depreciation (the loss of value in your vehicle as you add miles).
Record Keeping Tips
To qualify for these reimbursements or tax deductions, the IRS requires meticulous record-keeping. Your mileage log should include:
- The date of the trip.
- The starting point and destination.
- The business purpose of the trip.
- The total miles driven (odometer readings are preferred).