Last updated:

Mileage vs actual vehicle costs (UK)

Enter your business miles. If you also enter your annual running costs + business-use %, we’ll compare both methods and show the best option.

Calculator

Rates used: car/van 45p per mile (first 10,000) then 25p; motorcycle 24p per mile.

Actual costs (optional)

Add these if you want a comparison against actual costs.

Best option (estimate)
Enter annual running costs + business-use % to compare against actual costs.
£0.00
Simplified mileage (allowable expense)
Actual costs (allowable expense)

Estimates only. Not financial, tax, or legal advice. Eligibility rules can affect which method you can use. Check GOV.UK for full conditions.

How it works (quick)

Simplified mileage

  • Car/van: first 10,000 business miles at 45p, then 25p after.
  • Motorcycle: 24p per business mile.

Actual costs (rough comparison)

  • allowable = annual running costs × (business use % / 100)

Official guidance