Enter the total number of miles you’ve traveled, and the compensation per mile that your company pays into the calculator to determine the total reimbursement of your trip.
Mileage Reimbursement is a term used in business that typically refers to compensation of travel while on official business. It’s often in reference to compensation that specifically deals with the total number of miles traveled. This does not include compensation for food or other expenses. It’s simply a compensation per mile traveled value.
In general, an average compensation per mile is 58 cents. This value was determined as a baseline or minimum by the IRS to make sure employees are compensated for their travel adequately and to create a standard in industry.
The 58 cents was based on several studies of the cost of gas and costs of wear and tear on motor vehicles as they drive since most business transportation is with an automobile. As more and more business travel turns to air travel, this reimbursement is less applicable as many companies simply pay for all expenses.
The following formula is used to calculate the total compensation or reimbursement of a business travel.
C = m*r/m
- Where C is the total compensation ($)
- m is the total miles
- and r/m is the reimbursement per mile (typically $.058)