# Actual Driving Cost Per Mile



## DenverDiane

So I noticed there seems to be a _lot_ of discussion and misinfo on what the actual costs of running your vehicle are. Lots of drivers mistakenly believe that the .57 per mile IRS deduction are their operating expenses - they're not. Actual operating costs are usually much lower.

So I am creating a spreadsheet to help figure out my per mile expenses (be happy to share it if you want) and am trying to itemize actual operating expenses. Below is what I have so far and if anyone else can add on something I missed I'd be interested.

1. Gas cost per mile ( MPG of vehicle / cost of 1 gal gas ). In my case this comes out to $2.80 / 43 (I used a higher figure for gas price to account for gas going up) = $0.7

2. Tires (estimated cost of tires / useful life in miles) In my case I reasonably estimate $400 / 30,000 = $0.01

3. Oil (number of oil changes per 10K miles * cost of oil change / 10,000) In my case I estimate 1.5 * $60 / 10000 = $0.01

4. Depreciation. This is a toughie but here are my first thoughts: I am considering depreciation to be the reasonable sale price of my car MINUS the reasonable estimated sale price after 10K miles have been placed on the vehicle. In my case my '07 Prius with 60K miles on it can be sold for 9K (private party) and I reasonable expect the sale price at 70K miles to be 7K . I based these figures after looking at car prices on autotrader in my area - and allowing for the fact the people put their cars in the ads for 500 or so over what they expect to get.
( (est current selling price - est selling price after 10K miles) /10000) = ($9000 - $7000) / 10000 = $0.20

5. Tune Up costs (# of tune ups per 10K miles* cost of tune up /10000) . In my case this comes to .2 * 150 / 10000 = < <<< a fraction of a penny a mile = insignificant

So far I estimate my vehicle running costs to be .7 + .01 + .01 + .20 = $0.29 mile

What other vehicle related (not taxes, etc) costs may I have missed ?

NOTE Some figures edited / mistakes corrected


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## Disgusted Driver

I would agree, you should be able to operate vehicle for less than IRS allowance. Approach looks correct, your gas is wrong though, $2.80/43 = 6.5 cents per mile.
Depreciation will vary widely depending on where you are in the lifecycle of the car but repair costs may become a factor as cars go over 100K


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## uberwatcher

Hmmm. What about repairs? In general the more you drive the more repairs you will have to make. There are all sorts of $100-$300 repairs you could get hit with as well as the real doozies like $2500 for an engine or ****** rebuild.

The IRS estimate is actually probably pretty close save for some special circumstances. It probably correct within 20% for 90%+ of people.


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## scrurbscrud

38 cents looks reasonable for a small ride. For XL/Plus and commercial insurance every penny of the IRS allowance for costs is sorely needed.

The real risk cost for drivers might come into play after their first accident and their insurance company finds out they were TNC driving. USAA seems to be a little on the cheap side, but at least you disclose it to them. If it's a driver at fault the only downside to Lyft is the $2500 deductible and then the potential of increased insurance costs. The more a person is on the road, the higher their likelyhood of an accident, that much is certain.


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## uberwatcher

scrurbscrud said:


> The more a person is on the road, the higher their likelyhood of an accident, that much is certain.


True. That is one thing I considered when doing taxi. One mistake could mean double or triple the insurance premium. And as you said the more you drive the greater the chances. So you need to be compensated for that risk.


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## DenverDiane

Disgusted Driver said:


> I would agree, you should be able to operate vehicle for less than IRS allowance. Approach looks correct, your gas is wrong though, $2.80/43 = 6.5 cents per mile.
> Depreciation will vary widely depending on where you are in the lifecycle of the car but repair costs may become a factor as cars go over 100K


Thank you ! I edited the figures


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## DenverDiane

uberwatcher said:


> Hmmm. What about repairs? In general the more you drive the more repairs you will have to make. There are all sorts of $100-$300 repairs you could get hit with as well as the real doozies like $2500 for an engine or ****** rebuild.


Repair costs I think of more as business operating expenses rather than something that can be itemized to a per mile cost. By their very nature repairs occur randomly and can't be easily quantized.

My particular car - the Prius has extremely low operating expenses (brakes every 100K miles for example) . Of course the type of vehicle you operate will have a direct impact on whether you can succeed at using it for ride-share.



"uberwatcher said:


> The IRS estimate is actually probably pretty close save for some special circumstances. It probably correct within 20% for 90%+ of people.


77.34% of statistics are just something that someone made up.


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## DenverDiane

uberwatcher said:


> True. That is one thing I considered when doing taxi. One mistake could mean double or triple the insurance premium. And as you said the more you drive the greater the chances. So you need to be compensated for that risk.


I really want to concentrate on actual per-mile operating expenses of the vehicle itself rather than imaginary scenarios that may or may not take place at some point.
One could allocate a monthly amount for repairs and for risk management but both those costs would be business expenses - if indeed they ever materialized.
Thanks for the input though.


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## uberwatcher

DenverDiane said:


> Repair costs I think of more as business operating expenses rather than something that can be itemized to a per mile cost. By their very nature repairs occur randomly and can't be easily quantized.


If you aren't accounting for them then you definitely do not have an "actual cost per mile" though. I would seek input from others with a similar vehicle who have been driving it at least a year or two. In the taxi world I have seen $200-$500 a month per vehicle as a reasonable estimate but that includes tires, tune ups and fluid changes.


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## DenverDiane

uberwatcher said:


> If you aren't accounting for them then you definitely do not have an "actual cost per mile" though. I would seek input from others with a similar vehicle who have been driving it at least a year or two. In the taxi world I have seen $200-$500 a month per vehicle as a reasonable estimate but that includes tires, tune ups and fluid changes.


I didn't say I am not accounting for them . I am saying that breakdowns and insurance worries are business operating expenses and can not be reasonably be itemized. on a per-mile basis. Any try would be no more than a guess. I'm looking for concrete, itemizable per mile operating costs..

The taxi world is a VERY different beast from ride-share. For one thing they are putting MANY more miles on their vehicles (Uber drivers are mostly part-time) and for another they use VERY high mileage vehicles for their businesses.

I appreciate your input but think we'll have to agree to disagree on this one.


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## ElectroFuzz

The IRS $0.57 includes things like:
- Title/registration, Emission test.
- Car wash
- Traffic/parking tickets
- $400 for tires? (seems too low)
- Repairs? Auto Glass ? Break pads ? Spark plugs? Timing belt? Water pump?
I have a Toyota too... but these do happen.

I have 4 Camry's here are some of the repairs I had:
- Radiator Fan
- Water pump
- Charcoal canister
- AC blower fan

A good actual cost for a Camry is about $0.41-$0.42 per mile.
As far as I understand the Prius should be slightly higher.


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## DenverDiane

ElectroFuzz said:


> As far as I understand the Prius should be slightly higher.


As far as I understand the Prius should be slightly higher.

[/QUOTE]

Again I am looking for things that can be itemized per mile and are quantifiable. Parking tickets, etc don't meet that qualification neither does titling and emissions testing. Those are things that you would have to get anyway PLUS they are business expenses.

Tire expenses are obviously vehicle dependent. They might be low for your vehicle but are spot on for mine,

So far I seem to be running about.30 cents a mile in my Prius.


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## uberThere

DenverDiane said:


> As far as I understand the Prius should be slightly higher.
> 
> Again I am looking for things that can be itemized per mile and are quantifiable. Parking tickets, etc don't meet that qualification neither does titling and emissions testing. Those are things that you would have to get anyway PLUS they are business expenses.
> 
> Tire expenses are obviously vehicle dependent. They might be low for your vehicle but are spot on for mine,
> 
> So far I seem to be running about.30 cents a mile in my Prius.


You can use Edmund's TCO.

http://www.edmunds.com/tco.html

Just plug in your model and year, and it will do the calculations for you. It does estimate for some things such as finances that you need to plug in your own figures.


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## HbgDave

I'd like to see a copy of your spreadsheet. I'm interested in finding out my cost per mile as well.


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## arto71

HbgDave said:


> I'd like to see a copy of your spreadsheet. I'm interested in finding out my cost per mile as well.


Take a look at [email protected]UberHammer's blog
https://uberpeople.net/xfa-blog-entry/how-to-calculate-costs-as-an-uber-driver.23/


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## arto71

ElectroFuzz said:


> A good actual cost for a Camry is about $0.41-$0.42 per mile.
> As far as I understand the Prius should be slightly higher.


Shouldn't prius has a lower operating cost?


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## ElectroFuzz

arto71 said:


> Shouldn't prius has a lower operating cost?


Lower gas consumption does not always equal lower operating cost.
It's a more expensive car, that makes depreciation higher.
Also insurance, taxes and registration all higher because of it's value.


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## arto71

ElectroFuzz said:


> It's a more expensive car


I was comparing camry vs prius both almost same price (I own both)


ElectroFuzz said:


> gas consumption


But its 60% to 65% of operating cost isn't it?Isn't maintenance costs are typically less then half of the gas cost? MPG on my camry is 24 and 51 on prius ,that's more then double,on average i drive 1000 mile a week with gas price at $3.40 I can save $75 a week (I know breaks are not only cost but i did my first beak job on my prius at 128000 miles).
With gas prices at $3.40 I would drive a Prius over Camry.


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## Oscar Levant

DenverDiane said:


> So I noticed there seems to be a _lot_ of discussion and misinfo on what the actual costs of running your vehicle are. Lots of drivers mistakenly believe that the .57 per mile IRS deduction are their operating expenses - they're not. Actual operating costs are usually much lower.
> 
> So I am creating a spreadsheet to help figure out my per mile expenses (be happy to share it if you want) and am trying to itemize actual operating expenses. Below is what I have so far and if anyone else can add on something I missed I'd be interested.
> 
> 1. Gas cost per mile ( MPG of vehicle / cost of 1 gal gas ). In my case this comes out to $2.80 / 43 (I used a higher figure for gas price to account for gas going up) = $0.7
> 
> 2. Tires (estimated cost of tires / useful life in miles) In my case I reasonably estimate $400 / 30,000 = $0.01
> 
> 3. Oil (number of oil changes per 10K miles * cost of oil change / 10,000) In my case I estimate 1.5 * $60 / 10000 = $0.01
> 
> 4. Added insurance. OK here I am only adding on what the _extra_ insurance needed to drive for Uber costs me. I need to maintain an insurance policy anyway and in my case the extra cost id 8/month for a rideshare rider (USAA) . (extra cost per month / miles driven per month) $8 / 1600 = $0.01
> 
> 5. Depreciation. This is a toughie but here are my first thoughts: I am considering depreciation to be the reasonable sale price of my car MINUS the reasonable estimated sale price after 10K miles have been placed on the vehicle. In my case my '07 Prius with 60K miles on it can be sold for 9K (private party) and I reasonable expect the sale price at 70K miles to be 7K . I based these figures after looking at car prices on autotrader in my area - and allowing for the fact the people put their cars in the ads for 500 or so over what they expect to get.
> ( (est current selling price - est selling price after 10K miles) /10000) = ($9000 - $7000) / 10000 = $0.20
> 
> 6. Tune Up costs (# of tune ups per 10K miles* cost of tune up /10000) . In my case this comes to .2 * 150 / 10000 = < <<< a fraction of a penny a mile = insignificant
> 
> So far I estimate my vehicle running costs to be .7 + .01 + .01 + .01 + .20 = $0.30 mile
> 
> What other vehicle related (not taxes, etc) costs may I have missed ?
> 
> NOTE Some figures edited / mistakes corrected


Cost per mile with a prius is probably going to be cheaper, especially with a used car, than, say, my ford taurus. If that were a new prius, it depreciation would be higher.

But consider that if you work full time, you could easily put 40K miles per year on your car, and what does depreciation look like then?

Some cars are going to be cheaper than 56 cents per mile, others more, so you're on the lower end of that curve. If you are lower than the IRS deduction,
it would be in your favor to use the IRS deduction, but if your car costs you more than 56 cents per mile, then you'd be better off itemizing, this is why
they give you a choice.


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## DenverDiane

Oscar Levant said:


> Some cars are going to be cheaper than 56 cents per mile, others more, so you're on the lower end of that curve


Absolutely. I suspect that most people have operating costs on their vehicles a lot less than the IRS deduction myself.


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## DenverDiane

arto71 said:


> Take a look at [email protected]UberHammer's blog
> https://uberpeople.net/xfa-blog-entry/how-to-calculate-costs-as-an-uber-driver.23/


Great Article ! Thank you for the link. Based upon that article I am going to revice my calc above and remove the insurance expense.


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## Actionjax

Another way you can break down car depreciation is look at dealer lease calculations. You can on most sites add your extra miles and your term. The buyback is what you are left with at the end of the term.

Leases are just paying for depreciation in the end.


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## TimFromMA

I use a v8 Tundra and use the $0.57 per mile number from the IRS despite it being extremely high.

I dont factor in truck payments since I had those anyways. Same with insurance.

My truck uses $0.15 per mile in fuel which leaves $0.42 per mile for vehicle maintenance which is $42 for every 100 miles driven. That's ALOT. Any car requiring that much service should head for the junkyard ASAP.


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## uberThere

TimFromMA said:


> I use a v8 Tundra and use the $0.57 per mile number from the IRS despite it being extremely high.
> 
> I dont factor in truck payments since I had those anyways. Same with insurance.
> 
> My truck uses $0.15 per mile in fuel which leaves $0.42 per mile for vehicle maintenance which is $42 for every 100 miles driven. That's ALOT. Any car requiring that much service should head for the junkyard ASAP.


You need to include truck payments because you are now using part to generate your income. You also neglect to factor in insurance, car washes, permits, and depreciation. 
As for maintenance, there are thousands of parts on a vehicle, and they all can breakdown. Shocks, tires, windshields, struts, oil pump, fuel pump, wheel bearings, brakes, tie rods, transmission, etc. The more miles you run, the more you figure out how much maintenance is going to cost.


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## TimFromMA

Based on every Toyota I've ever owned, I fully expect to keep my truck for 200,000+ miles. You actually think that I will spend MORE than $84,000 on maintenance over the life of my truck?? 

You can't be serious.


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## ElectroFuzz

TimFromMA said:


> Based on every Toyota I've ever owned, I fully expect to keep my truck for 200,000+ miles. You actually think that I will spend MORE than $84,000 on maintenance over the life of my truck??
> 
> You can't be serious.


Average driver makes 12000 miles per year.
To reach 200,000 miles will take 17 years.
$84000 / 17 = $4,951 per year car cost... probably a little high but pretty close.


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## ElectroFuzz

arto71 said:


> I was comparing camry vs prius both almost same price (I own both)
> 
> But its 60% to 65% of operating cost isn't it?Isn't maintenance costs are typically less then half of the gas cost? MPG on my camry is 24 and 51 on prius ,that's more then double,on average i drive 1000 mile a week with gas price at $3.40 I can save $75 a week (I know breaks are not only cost but i did my first beak job on my prius at 128000 miles).
> With gas prices at $3.40 I would drive a Prius over Camry.


Gas is typically 20%-25% of your total car cost.

In the IRS $0.57 per mile, gas is calculated as $0.16 per mile.


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## ElectroFuzz

Source:
http://www.companymileage.com


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## scrurbscrud

DenverDiane said:


> You are conflating *per mile costs *with *time based* costs (i.e. monthly) . Car Payments and car washes are per months costs and do *not* depend on car mileage. For purposes of per mile operating costs you only consider per mile based things like gas and oil changes both of which depend on miles driven.


Every cost is pertinent to whatever formula is used.


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## uberThere

DenverDiane said:


> You are conflating *per mile costs *with *time based* costs (i.e. monthly) . Car Payments and car washes are per months costs and do *not* depend on car mileage. For purposes of per mile operating costs you only consider per mile based things like gas, tires and oil changes all of which depend on miles driven.
> 
> Per mile costs are necessary to know in order to determine your profit. Gross profit from Uber is *mile* based thus you need to know your *per mile* costs in order to determine your actual *per mile profit*. From that point on you can subtract out monthly costs like car washes and insurance.
> 
> Keep in mind though that monthly cost things like car insurance, tags and license are going to be purchased for your car *regardless* of whether you work for Uber (assuming this is your personal vehicle ) so they really *should not* be calculated into costs (as opposed to car washes which probably should) . In fact working for a ride share actually *reduces* those costs by your tax bracket depreciation amount. So if you use your car for Uber , say 75% of your miles, then driving for Uber actually *reduces* those costs that you would be paying anyway by 75% of your 15% tax bracket or 11 % (assuming you make between 18 and 36K per year)


I was a licensed CPA for a decade, so I can tell you that I'm not conflating anything.

All costs are rolled into the cost per mile calculation because that is how you project your operating revenue and costs. I used to be the comptroller for a small trucking company, and trust me this is all part of the cost per mile because it tells you how efficient you are running your organization. No offence, but your line of thought is exactly why Uber is able to convince people that it is worth while to run at such low rates. Your lease/loan payments, insurance, and plating are not free, they are what you pay to use your vehicle for your personal use and enjoyment. As soon as you fire the car up for Uber, then you are doing it as a business, and that has opportunity costs associated with it.

I'm often amazed that people are so eager to devalue their personal property as if it was just a throw away. If you didn't drive for Uber you could be doing a lot of things that were actually enjoyable to you. People here are so eager to look at their fixed costs as something they pay for already, so it's worth zero, or as a tax benefit as you explain it. That isn't true in the least bit. Those payments are exactly how you are earning a living, and it is at the sacrifice of your private life. That means something to me, does it really mean nothing to you?


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## Bart McCoy

Oh brother


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## DenverDiane

uberThere said:


> All costs are rolled into the cost per mile calculation because that is how you project your operating revenue and costs. I used to be the comptroller for a small trucking company, and trust me this is all part of the cost per mile because it tells you how efficient you are running your organization. No offence, but your line of thought is exactly why Uber is able to convince people that it is worth while to run at such low rates. Your lease/loan payments, insurance, and plating are not free, they are what you pay to use your vehicle for your personal use and enjoyment. As soon as you fire the car up for Uber, then you are doing it as a business, and that has opportunity costs associated with it.
> 
> I'm often amazed that people are so eager to devalue their personal property as if it was just a throw away. If you didn't drive for Uber you could be doing a lot of things that were actually enjoyable to you. People here are so eager to look at their fixed costs as something they pay for already, so it's worth zero, or as a tax benefit as you explain it. That isn't true in the least bit. Those payments are exactly how you are earning a living, and it is at the sacrifice of your private life. That means something to me, does it really mean nothing to you?


Maybe you were a CPA and maybe not. Who knows on the internet?
You don't seem to be listening. I am *not* suggesting to forget about non-mile based costs. (see the boldfaced "not"?)

I am saying that _for purposes of the spreadsheet calculation _I am *only* considering costs based upon mileage. We can deduct time based costs (like monthly car payments if any) afterwards. I am surprised that this is so difficult a concept to grasp?

I am also stating that, for the majority of Uber drivers, since they use their vehicle for both pleasure and business that time based costs are only based on a fractional percentage (the fraction of time that you drive for Uber) at best.

For instance if you already have a car and use it part-time for Uber then deducting your monthly car payment i*n the net profit calculation* - *not* for purposes of taxes - does not make sense because you are going to have that payment regardless if you drive for Uber or not. It's like underwear - you're gonna wear them (hopefully) whether you drive for Uber or not so you shouldn't deduct your undies as an operating cost. That should not be difficult for an accountant to understand as well.


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## uberThere

DenverDiane said:


> Maybe you were a CPA and maybe not. Who knows on the internet?
> You don't seem to be listening. I am *not* suggesting to forget about non-mile based costs. (see the boldfaced "not"?)
> 
> I am saying that _for purposes of the spreadsheet calculation _I am *only* considering costs based upon mileage. We can deduct time based costs (like monthly car payments if any) afterwards. I am surprised that this is so difficult a concept to grasp?
> 
> I am also stating that, for the majority of Uber drivers, since they use their vehicle for both pleasure and business that time based costs are only based on a fractional percentage (the fraction of time that you drive for Uber) at best.
> 
> For instance if you already have a car and use it part-time for Uber then deducting your monthly car payment i*n the net profit calculation* - *not* for purposes of taxes - does not make sense because you are going to have that payment regardless if you drive for Uber or not. It's like underwear - you're gonna wear them (hopefully) whether you drive for Uber or not so you shouldn't deduct your undies as an operating cost. That should not be difficult for an accountant to understand as well.


You are rather obtuse, and abrasive. Is this just an Internet thing, or do you do normally try to inflame people who are trying to have a discussion with you? You are free to decide whatever you like, just like you can ignore your doctor's advice about having chemo for cancer, and go to a faith healer. As an adult, the choice is yours.

I really couldn't care what you think about what makes sense in determining profit because GAAP is rather clear about it. You don't seem to have taken a basic accounting course, but you think it's fine to question what I tell you? If you think that your payments, insurance, etc. are *free* because you'd pay for it anyways. Then please, have at it. However, as I said, this is exactly what Uber hopes for because you're fixed costs are paying for their business model. My employer pays me 87 cents a mile when I use my car to go to meetings, and can you guess why? It's because they are paying for what it costs me to operate a vehicle that distance.


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## uberThere

DenverDiane said:


> Maybe you were a CPA and maybe not. Who knows on the internet?
> You don't seem to be listening. I am *not* suggesting to forget about non-mile based costs. (see the boldfaced "not"?)
> 
> I am saying that _for purposes of the spreadsheet calculation _I am *only* considering costs based upon mileage. We can deduct time based costs (like monthly car payments if any) afterwards. I am surprised that this is so difficult a concept to grasp?
> 
> I am also stating that, for the majority of Uber drivers, since they use their vehicle for both pleasure and business that time based costs are only based on a fractional percentage (the fraction of time that you drive for Uber) at best.
> 
> For instance if you already have a car and use it part-time for Uber then deducting your monthly car payment i*n the net profit calculation* - *not* for purposes of taxes - does not make sense because you are going to have that payment regardless if you drive for Uber or not. It's like underwear - you're gonna wear them (hopefully) whether you drive for Uber or not so you shouldn't deduct your undies as an operating cost. That should not be difficult for an accountant to understand as well.


You are rather obtuse, and abrasive. Is this just an Internet thing, or do you do normally try to inflame people who are trying to have a discussion with you? You are free to decide whatever you like, just like you can ignore your doctor's advice about having chemo for cancer, and go to a faith healer. As an adult, the choice is yours.

I really couldn't care what you think about what makes sense in determining profit because GAAP is rather clear about it. You don't seem to have taken a basic accounting course, but you think it's fine to question what I tell you? If you think that your payments, insurance, etc. don't count in per mile, then you don't understand what we do in accounting. As I stated, they show your efficiency, and they used to project your future revenues, and expense. What I've done in business is far beyond your grasp, and that's pretty evident.


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## DenverDiane

uberThere said:


> You are rather obtuse, and abrasive.


Welcome to my ignore list. Buh bye!



uberThere said:


> What I've done in business is far beyond your grasp, and that's pretty evident.


On the Internet no one knows you're really a dog.


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## uberThere

DenverDiane said:


> Welcome to my ignore list. Buh bye!
> 
> On the Internet no one knows you;re really a dog.


I actually feel honoured to be on this list of yours. Enjoy your echo chamber, it's obvious that in real life you really are a total *****.


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## Bart McCoy

uberThere said:


> I actually feel honoured to be on this list of yours. Enjoy your echo chamber, it's obvious that in real life you really are a total *****.


ouch


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## uberThere

Bart McCoy said:


> ouch


When the first sentence is a questioning of my qualifications then I get a little upset. When they compound the issue by being blatantly ignorant about the subject matter and then announce they are happy to remain that way, then I think it's time to have some fun.


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## Ripd

Something tells me that after all this math and spreadsheets and bickering about expenses and depreciation etc...... the only thing that will be proven is that Uber/Lyft gives us the opportunity to CONVERT something we already own (vehicle equity) into cash. Legitimately earning income vs. simply converting equity is the issue. 
After being a full time Uber/Lyft driver for 3 months, I can say I've developed a new respect and understanding for how and why cabs are priced the way they are.
I originally embraced the idea of Uber being the 'future' and all that... and cabs being the 'old way'..... but then I just saw it as the only ones truly making money is Uber and the only ones truly getting a good deal is the riders. Uber capitalizes on drivers who don't know the difference between earning income and converting equity.

The original Uber business model, which was to slightly undercut the pricing structure of the cab industry, along with the super convenient app.... it is the only way an Uber driver will actually earn income. But then they went batshit crazy and started going after the bus stop crowd is when I had enough. I'm still fascinated by the concept and hang around only to keep up with any changes.


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## uberThere

Ripd said:


> Something tells me that after all this math and spreadsheets and bickering about expenses and depreciation etc...... the only thing that will be proven is that Uber/Lyft gives us the opportunity to CONVERT something we already own (vehicle equity) into cash. Legitimately earning income vs. simply converting equity is the issue.
> After being a full time Uber/Lyft driver for 3 months, I can say I've developed a new respect and understanding for how and why cabs are priced the way they are.
> I originally embraced the idea of Uber being the 'future' and all that... and cabs being the 'old way'..... but then I just saw it as the only ones truly making money is Uber and the only ones truly getting a good deal is the riders. Uber capitalizes on drivers who don't know the difference between earning income and converting equity.
> 
> The original Uber business model, which was to slightly undercut the pricing structure of the cab industry, along with the super convenient app.... it is the only way an Uber driver will actually earn income. But then they went batshit crazy and started going after the bus stop crowd is when I had enough. I'm still fascinated by the concept and hang around only to keep up with any changes.


You have a sharp mind. This is why you need to figure out your cost per mile, and not only that, your opportunity costs because your life is worth something.


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## chi1cabby

@Actionjax please "UnLike" @DenverDiane's post above.

For explanation, see
https://uberpeople.net/threads/denver-diane.16613/page-3#post-228086


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## JMN48236

DenverDiane said:


> So I noticed there seems to be a _lot_ of discussion and misinfo on what the actual costs of running your vehicle are. Lots of drivers mistakenly believe that the .57 per mile IRS deduction are their operating expenses - they're not. Actual operating costs are usually much lower.
> 
> So I am creating a spreadsheet to help figure out my per mile expenses (be happy to share it if you want) and am trying to itemize actual operating expenses. Below is what I have so far and if anyone else can add on something I missed I'd be interested.
> 
> 1. Gas cost per mile ( MPG of vehicle / cost of 1 gal gas ). In my case this comes out to $2.80 / 43 (I used a higher figure for gas price to account for gas going up) = $0.7
> 
> 2. Tires (estimated cost of tires / useful life in miles) In my case I reasonably estimate $400 / 30,000 = $0.01
> 
> 3. Oil (number of oil changes per 10K miles * cost of oil change / 10,000) In my case I estimate 1.5 * $60 / 10000 = $0.01
> 
> 4. Depreciation. This is a toughie but here are my first thoughts: I am considering depreciation to be the reasonable sale price of my car MINUS the reasonable estimated sale price after 10K miles have been placed on the vehicle. In my case my '07 Prius with 60K miles on it can be sold for 9K (private party) and I reasonable expect the sale price at 70K miles to be 7K . I based these figures after looking at car prices on autotrader in my area - and allowing for the fact the people put their cars in the ads for 500 or so over what they expect to get.
> ( (est current selling price - est selling price after 10K miles) /10000) = ($9000 - $7000) / 10000 = $0.20
> 
> 5. Tune Up costs (# of tune ups per 10K miles* cost of tune up /10000) . In my case this comes to .2 * 150 / 10000 = < <<< a fraction of a penny a mile = insignificant
> 
> So far I estimate my vehicle running costs to be .7 + .01 + .01 + .20 = $0.29 mile
> 
> What other vehicle related (not taxes, etc) costs may I have missed ?
> 
> NOTE Some figures edited / mistakes corrected


Car insurance and repairs needs to be included. Those items are factored into the operating costs. So even on your Prius, you have to have issurance XXX dollars per year and you can estimate repairs on XXX/mile or XXXX/month. The rest of your calculation is good.


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## KingJimmy

I found this guide from AAA very helpful in calculating the cost of operating my car. I think it'll help you too.

http://exchange.aaa.com/wp-content/uploads/2012/04/your-driving-costs-20122.pdf


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