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Business Mileage 4 min read

Free Business Mileage Calculator

Calculate your business mileage claim instantly. Enter your miles, apply HMRC rates and see your tax-deductible amount.

MileageCalendar Team Published 1 May 2025 Updated 20 January 2026

How the mileage calculator works

Our free business mileage calculator applies the HMRC approved mileage rates automatically. Enter your total business miles and the calculator works out your claim at 55p per mile for the first 10,000 miles and 25p per mile above that threshold.

The calculator handles the 10,000 mile threshold switch for you, so you never need to worry about which rate applies to which miles.

What is the HMRC approved mileage rate?

The HMRC approved mileage payment rate for cars and vans is 55p per mile for the first 10,000 business miles in a tax year, and 25p per mile for each mile above 10,000. For motorcycles, the rate is 24p per mile.

These rates cover all vehicle costs including fuel, insurance, maintenance, road tax and depreciation. You do not need to keep fuel receipts when using the approved rate.

  • Cars and vans: 55p per mile (first 10,000), 25p per mile (above 10,000)
  • Motorcycles: 24p per mile
  • Passenger payments: 5p per mile per passenger
  • No fuel receipts needed when using the approved rate

How to use the calculator

Simply enter your total annual business miles. The calculator applies the correct rate and shows you your total mileage allowance. If you drive more than 10,000 miles, it automatically splits the calculation at the threshold.

For example, 8,000 business miles at 55p per mile gives a claim of £4,400. If you drive 12,000 miles, the first 10,000 are at 55p (£5,500) and the remaining 2,000 are at 25p (£500), giving a total of £6,000.

Why track mileage instead of estimating?

HMRC requires accurate records of every business journey — the date, start point, end point, total miles and business purpose. Estimating your mileage can lead to an inaccurate claim and potential penalties if HMRC investigates.

MileageCalendar tracks every journey automatically using GPS and applies the correct HMRC rate. You get a compliant report ready for your Self Assessment, with no manual calculations needed.

Track mileage at the correct HMRC rate automatically

GPS tracking, automatic rate switching and compliant reports. Free to start.

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Frequently Asked Questions