Plan your trip and estimate fuel expenses accurately
The basic formula for calculating fuel cost is:
(Distance ÷ MPG) × Fuel Price = Total Cost
For example, a 100-mile trip in a car that gets 25 MPG with gas at $3.50/gallon:
(100 ÷ 25) × 3.50 = 4 × 3.50 = $14.00
Fuel prices vary based on several factors including crude oil prices, refining costs, distribution and marketing, taxes, and local market conditions. The type of fuel you choose also affects your costs:
| Fuel Type | Typical Price Premium | MPG Impact | Best For |
|---|---|---|---|
| Regular (87 octane) | Base price | Manufacturer rating | Most vehicles |
| Midgrade (89 octane) | +$0.20-$0.30/gal | Minimal | Some luxury vehicles |
| Premium (91-93 octane) | +$0.40-$0.60/gal | Minimal (unless required) | High-performance engines |
| Diesel | Varies | 20-30% better | Diesel engines |
For electric vehicles, the calculation changes:
(Distance ÷ Miles per kWh) × Electricity Price = Total Cost
Example for an EV that gets 4 miles/kWh with electricity at $0.12/kWh:
(100 ÷ 4) × 0.12 = 25 × 0.12 = $3.00
This is why many EV owners see significant savings compared to gasoline vehicles.