Fuel budgeting guide

How to calculate fuel cost per mile and journey cost

A useful journey budget needs three inputs that belong together: the distance, a realistic MPG for that type of driving and the price you expect to pay for fuel.

Reviewed 6 September 2026UK units unless statedCalculations and assumptions shown

The calculation

Litres = miles ÷ UK MPG × 4.54609
Journey cost = litres × £/litre
Pence/mile = cost ÷ miles × 100

Worked example: 180 miles, 46 MPG, 145p/litre

1

180 ÷ 46 × 4.54609 = 17.79 litres

2

17.79 × £1.45 = £25.80

3

£25.80 ÷ 180 = 14.3p per mile for fuel

How sensitive is the result to MPG?

UK MPGFuel for 180 milesCost at 145p/L
3027.28 L£39.55
4020.46 L£29.66
5016.37 L£23.74
6013.64 L£19.78

This is why a towing, urban or winter journey should not automatically be costed using a best-ever motorway MPG figure.

Fuel cost is not the same as total motoring cost

Fuel-only calculations are useful for a trip decision or comparing two routes. For ownership decisions, depreciation, insurance, tax, servicing, tyres and finance can outweigh the fuel difference. Keep those questions separate so a simple journey tool does not imply a whole-car answer.

One-way, return and shared journeys

Check the distance definition before entering it. If a route planner shows 180 miles one way, a same-route return is roughly 360 miles before detours. For a cost split, calculate the whole vehicle journey first and divide only the costs you actually intend to share. A four-person split does not change fuel consumption; it changes who pays it.

For repeat commuting, convert the pattern into annual miles rather than multiplying a single day's cost by 365. A five-day work pattern has fewer commuting days after weekends, leave and home-working. The Commute Cost Calculator keeps that frequency visible.

Common budgeting mistakes