Calculating A Driving Cost Per Mile

Posted by on November 29, 2015 in Cost Per Mile | Comments Off on Calculating A Driving Cost Per Mile

The following will give you an idea on how you will be able to calculate your driving cost per mile. To start with, you must consider including not just your fuel when you are to solve with your cost per mile kind of calculations just for you to see to it how much you really spend driving an every mile. Now, you will need your current car or any type of vehicle for you to start, then utilize the following information so you will be able to compare the annual cost with your older and newest vehicle. This will give you the results that will affect your decision on how often you will use your car depending on your gas budget.

Startup with Fuel Cost

Of course, this is something that is a lot more accurate when you are to log that is containing the mileage and the fuel information then if you got no historical details available, you can just refer to your estimations. Then the next thing for you to do is to divide the total and actual estimated expenses you got through either your estimated or best if with your actual annual miles driven for you to calculate the total miles per hour driving cost.

Calculating A Driving Cost Per Mile

Inclusion of Operating Cost

Now, you have to calculate the total operating costs then you have to divide the gathered amount for the annual miles that you have driven. There are things that you really need to include and these are such as the annual maintenance including the routine servicing, tires changed, car washes, and some repairs that your vehicle undergone. Then, include too even those out of pockets as well as those insurance claims, any money matters that is related with your vehicle will always count. You can also go for the Vicroads hazard perception test and add that cost too.

Determining the Annual Ownership Cost

You may already know what includes with your annual ownership costs, gather all of these information without including the depreciation. There will be no longer need for you to have the annual depreciation, all you need now is the total depreciation for the duration of your ownership; then you will now divide that total depreciation with the years of your ownership with your vehicle for you to get the right average of your depreciation.

Indirect Costs Involves to sum it all up

Now, you may include all the commute duration as well as with some potential accidents probability costs. The reason here is you will be basing your travel cost with the commute duration. Then you will divide the amount by the annual commute mile, see with your insurance agents the accident costs.

Now the last thing that you do is to sum and convert the costs of ownership by the cost per mile then adds those operating and fuel costs. This is how you calculate the total driving cost with all the factors that you need to include to get the accuracy of the sum and you are now capable of monitoring your driving cost.