Enter the allowed mileage, actual mileage, and mileage rate into the calculator to determine the excess mileage charge. This calculator helps you understand any additional costs incurred due to exceeding the mileage limit.
Excess Mileage Charge Formula
The following formula is used to calculate the excess mileage charge.
EMC = (AM - ALM) * MR
Variables:
- EMC is the excess mileage charge ($)
- AM is the actual mileage (miles)
- ALM is the allowed mileage (miles)
- MR is the mileage rate ($ per mile)
To calculate the excess mileage charge, subtract the allowed mileage from the actual mileage to find the excess mileage. Then, multiply the excess mileage by the mileage rate.
What is Excess Mileage Charge?
An excess mileage charge is a fee that is incurred when a vehicle is driven more than the mileage limit specified in a lease or rental agreement. This charge is calculated by multiplying the number of miles over the limit by a specified rate. It is a common term in vehicle lease agreements where there is a cap on the number of miles that can be driven without incurring additional fees.
How to Calculate Excess Mileage Charge?
The following steps outline how to calculate the Excess Mileage Charge.
- First, determine the allowed mileage (ALM) in miles.
- Next, determine the actual mileage (AM) in miles.
- Next, determine the mileage rate (MR) in dollars per mile.
- Next, gather the formula from above = EMC = (AM – ALM) * MR.
- Finally, calculate the Excess Mileage Charge (EMC) in dollars.
- 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.
allowed mileage (ALM) = 12,000 miles
actual mileage (AM) = 15,000 miles
mileage rate (MR) = $0.25 per mile
