What is pence per mile?
Pence per mile shows the real cost of travelling one mile. It helps you compare petrol, diesel, electric charging, commutes and business mileage in one simple number.
Pence per mile is the cost of travelling one mile, shown in pence. If a journey costs £18 and covers 100 miles, the cost is 18p per mile.
It is useful because it turns different driving costs into one comparable figure. You can use it for petrol, diesel, electric charging, commute costs, mileage claims and car running-cost comparisons.
Why pence per mile matters
Two cars can have very different real costs even if they look similar on paper. One might have better fuel economy, another might use cheaper energy, and another might be expensive because it loses value quickly.
Pence per mile helps you compare those differences without guessing. It also makes annual driving costs easier to understand, because you can multiply the pence-per-mile figure by the number of miles you expect to drive.
Work out your journey cost
Use the fuel cost calculator to estimate total trip cost, fuel used and pence per mile.
How pence per mile is calculated
The basic formula is simple: divide the total cost by the number of miles, then convert the answer into pence.
Pence per mile = (total cost ÷ miles travelled) × 100For fuel, the total cost usually comes from distance, MPG and fuel price per litre. For an electric car, it usually comes from miles per kWh and the electricity price.
Worked example
Suppose a 100-mile petrol journey costs £17.82.
£17.82 ÷ 100 miles = £0.1782 per mile
£0.1782 × 100 = 17.82p per mileThat figure can then be compared with another petrol car, a diesel car, an EV charging result or your normal commute.
What should be included?
There is more than one version of pence per mile. The right one depends on what you are trying to compare.
| Version | Includes | Best use |
|---|---|---|
| Energy-only cost per mile | Petrol, diesel or electricity only. | Comparing journey fuel or charging cost. |
| Commute cost per mile | Energy cost plus parking, tolls or congestion charges. | Estimating the real cost of getting to work. |
| Ownership cost per mile | Fuel, insurance, servicing, tax, MOT, depreciation and finance. | Comparing whether a car is affordable overall. |
| Business mileage rate | A set mileage allowance or reimbursement rate. | Comparing employer mileage payments with tax guidance. |
Which calculator should you use?
Use a different calculator depending on the cost you want to turn into pence per mile.
| Question | Use this calculator | Why |
|---|---|---|
| How much will a journey cost? | Fuel Cost Calculator | Works from distance, MPG and fuel price. |
| How efficient is my petrol or diesel car? | MPG Calculator | Turns miles and fuel used into MPG. |
| How much does my commute cost each year? | Commute Cost Calculator | Adds return trips, working weeks, parking and tolls. |
| How much does EV charging cost per mile? | EV Charging Cost Calculator | Uses battery size, charging loss, efficiency and electricity price. |
| What can I claim for work travel? | Mileage Reimbursement Calculator | Compares business miles with employer reimbursement and tax relief. |
Pence per mile for EVs vs petrol and diesel
Petrol and diesel cost per mile usually depends on fuel price and MPG. EV cost per mile depends on vehicle efficiency, charging losses and the tariff used to charge the battery.
This is why a home-charged EV can look much cheaper per mile than public rapid charging. An EV tariff with a lower overnight rate can also change the comparison significantly.
Pence per mile and business mileage
For work travel, pence per mile can also refer to how much an employer reimburses you for eligible journeys. That is different from your actual fuel cost per mile.
For example, a business mileage payment might be based on a set pence-per-mile rate rather than your exact petrol receipt. An approved mileage allowance payment is the HMRC framework used for certain employee mileage payments.
Common mistakes
- Comparing energy-only cost with total ownership cost: fuel or charging is only one part of running a car.
- Forgetting return journeys: a 30-mile commute is often 60 miles per working day.
- Using one fuel price forever: petrol, diesel and electricity prices move, so calculator assumptions should be editable.
- Ignoring charging losses: EVs normally draw slightly more electricity from the wall than the battery receives.
- Treating mileage reimbursement as profit: reimbursement may need to cover fuel, wear, tyres, insurance and depreciation.
Pence per mile FAQs
Is lower pence per mile always better?
For a like-for-like journey, lower is usually cheaper. But for buying or keeping a car, you should also consider depreciation, insurance, servicing, tax and finance.
Is pence per mile the same as MPG?
No. MPG measures fuel efficiency. Pence per mile measures money spent for each mile travelled.
Can pence per mile include parking and tolls?
Yes, if you are calculating the real cost of a commute or journey. For fuel-only comparisons, keep parking and tolls separate.
Why does my pence per mile change?
It can change because of fuel prices, electricity tariffs, driving style, weather, traffic, route type, tyre condition and vehicle load.