Enter the total miles driven and the rate per mile into the calculator to determine the total cost. This calculator can also evaluate any of the variables given the others are known.
62.5 Cents Per Mile Formula
The following formula is used to calculate the total cost based on miles driven at a rate of 62.5 cents per mile.
TC = M * R
Variables:
- TC is the total cost ($)
- M is the total miles driven
- R is the rate per mile (in this case, 0.625)
To calculate the total cost, multiply the total miles driven by the rate per mile.
What is a 62.5 Cents Per Mile?
A 62.5 cents per mile is a rate that is often used for reimbursement purposes. It means that for every mile driven, the driver will be reimbursed 62.5 cents. This rate can be used by businesses to reimburse their employees for the use of their personal vehicle for business purposes, or by the IRS to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
How to Calculate 62.5 Cents Per Mile?
The following steps outline how to calculate the Total Cost using the formula TC = M * R.
- First, determine the total miles driven (M).
- Next, determine the rate per mile (R).
- Next, gather the formula from above = TC = M * R.
- Finally, calculate the Total Cost (TC).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
total miles driven (M) = 100
rate per mile (R) = 0.625
