1. What is Mileage Reimbursement?

Mileage reimbursement is compensation provided to employees or individuals for using their personal vehicles for business purposes. The 2025 standard mileage rate set by the IRS is $0.67 per mile.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Miles \) — Distance traveled in miles
• \( 0.67 \) — 2025 standard reimbursement rate per mile

3. Importance of Mileage Tracking

Details: Accurate mileage tracking ensures proper reimbursement for vehicle expenses including gas, maintenance, and depreciation. It's also important for tax deductions for self-employed individuals.

4. Using the Calculator

Tips: Enter the total miles driven for business purposes. The calculator will automatically compute the reimbursement amount based on the 2025 standard rate of $0.67 per mile.

5. Frequently Asked Questions (FAQ)

Q1: What expenses does mileage reimbursement cover?
A: It covers all vehicle-related expenses including gas, oil, tires, maintenance, repairs, insurance, and depreciation.

Q2: Can I use this for personal mileage tracking?
A: This calculator is designed for business mileage. Personal mileage may have different reimbursement rates or tax implications.

Q3: How often is the standard rate updated?
A: The IRS typically updates the standard mileage rate annually, usually in December for the following year.

Q4: Do I need to keep records of my mileage?
A: Yes, you should maintain a mileage log with dates, destinations, purposes, and odometer readings for verification.

Q5: Are there different rates for different types of travel?
A: Yes, medical and moving mileage may have different rates. This calculator uses the business mileage rate only.