Vehicle Cost Calculator
True cost of using your vehicle for gig work including depreciation and maintenance.
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
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 to be higher than regular driving.
Optimal Vehicles: Used hybrids often have the lowest total cost of ownership for gig work: high MPG, reliable, and already partially depreciated.
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 is $0.20/mile. Many drivers do not realize they are effectively spending their car's value.
What is the IRS mileage deduction rate?
The 2026 IRS standard mileage rate is $0.725/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 have already absorbed major depreciation. Focus on reliability and fuel efficiency - a used Toyota Prius is a popular choice.
Methodology & Limits
How it works
This calculator calculates a driving & delivery scenario from your inputs, then surfaces the result as decision-oriented numbers.
Assumptions
Uses current vehicle costs assumptions where relevant.
Use it as a screen
Treat the output as a planning estimate. Share the current scenario URL when you want to revisit or compare assumptions. Validate the numbers with real payouts, costs, deadlines, and local rules before committing money.
Next action
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