Cost Per Mile Chapter 3 (Fuel Costs)


3

Fuel


 

Fuel mileage is easily calculated. Most of you probably know how to do this calculation so just humor me. Fuel mileage can be figured over any given time span. I prefer to have a years worth of data before I calculate fuel mileage because of weather changes during the year. The issue applies, the more data you have the more accurate your figures will be. You must fill your tank / tanks at the beginning and ending mileage figures. Partially filling your tank / tanks will not give you an accurate calculation. I prefer to let the mechanical kick off to shout the pump off on both occasions. The reason for this is that if you keep filling your tank /tanks to an even dollar amount your cost for fuel will be distorted, thus making your figure inaccurate . When considering the volume of fuel utilized, accuracy is critical.. To figure out fuel mileage do your initial fill up and your costs over a given span. Then when you decide to do a final fill up . Add up all your gallons between the first and last fill up and their cost of purchases for that time. Then subtract your beginning mileage from your first fill up from the ending mileage fill up. Divide your that figure by your gallons used. This will give you your MPG( Miles Per Gallon).Take your MPG and divide it into your total cost giving you an average cost per gallon. Again, I repeat it is very important to fill your tank /tanks on the initial and final fill up. Here are the formulas for calculating fuel costs:

 

This is the formula for your miles per gallon

           ENDING MILEAGE - BEGINNING MILEAGE = MILES TRAVELED GALLONS USED =             MILES PER GALLON

 

 This is the formula for  calculating average cost per gallon

TOTAL COST ~ GALLONS PURCHASED = AVERAGE PRICE PER GALLON

 

This is the formula for calculating your cost per mile for fuel expenses

AVERAGE PRICE PER GALLON ~ MILES PER GALLON = COST PER MILE


Fuel Mileage Worksheet


Ending Mileage        ___________

Beginning Mileage  - ___________

                            = ___________

       Gallons Used ~ ___________

  Miles Per Gallon = ___________

   Price Per Gallon x ___________

      Cost Per Mile = ___________

Enter this figure on line 1 of the equipment worksheet on the last page