Pension Tax-Free Lump Sum: How the 25% Rule Works (2026/27)
You can normally take 25% of your pension as a tax-free lump sum, capped at £268,275. Here is exactly how the rule works…
This fuel cost calculator works out what a journey actually costs to drive, using three numbers you already know or can find in a minute: the distance in miles, your car's MPG, and the pump price in pence per litre. Whether you are pricing a daily commute, a long motorway run, or a road trip you want to split with friends, you get a clear figure in pounds and pence.
It is built for UK drivers, uses the imperial gallon your MPG is measured in, and handles petrol, diesel and hybrids the same way.
Fuel cost
Over a year
fuel spend
miles driven
Estimate only. Real-world MPG and pump prices vary by car, driving style and area.
How your yearly fuel bill moves as the price at the pump changes, for this journey and frequency.
Pump price (pence per litre), from to
| MPG | Per trip | Per year | vs now |
|---|---|---|---|
| Journey | Per trip | Per year | p/mile | |
|---|---|---|---|---|
Fuel cost per mile = price per litre × 4.546 ÷ your car's mpg. A 50 mpg car at £1.50 a litre costs about 13.6p a mile, so a 200-mile round trip costs roughly £27.28. Enter your own trip above.
Enter your distance, your car's miles per gallon and the current pump price into the fuel cost calculator above, and it returns the cost of the trip. Change any one of the three inputs and the result updates, so you can test a cheaper route, a more economical driving style, or a fill-up at a supermarket forecourt versus a motorway services.
The maths behind a petrol cost calculator is short, but the unit juggling trips people up. Your MPG is measured in miles per imperial gallon, yet you buy fuel in litres. One imperial gallon is 4.54609 litres, so every calculation has to convert between the two.
The formula, in plain words, is:
You can fold that into a single line: cost = (miles ÷ MPG) × 4.546 × price-per-litre-in-pounds. If you prefer to think per mile, divide the journey cost by the miles and you get your pence-per-mile fuel figure, which is handy for budgeting and for comparing cars.
A quick note on MPG itself. The official figure on a car's spec sheet comes from a standardised lab test (WLTP) and is usually optimistic compared with real-world driving. Town traffic, a roof box, a full boot, cold weather and a heavy right foot all push your real MPG down. For an honest estimate, work out your own MPG: note the miles between two fill-ups, then divide by the gallons you put in (litres ÷ 4.546). Use that number here rather than the brochure figure.
Diesel and petrol use exactly the same formula; only the MPG and the pump price differ. Diesels typically return more miles per gallon but diesel often costs a few pence per litre more, so the cheaper-to-run answer depends on both figures together, not just the MPG.
Picture Sarah, a nurse in Leeds who drives 24 miles to the hospital and 24 miles home, five days a week. Her petrol hatchback returns a real-world 45 MPG and her local forecourt is charging 140p a litre.
Over a 46-week working year that is roughly £1,561 in fuel just getting to work. Knowing the number makes decisions concrete: a colleague to car-share with, or a switch to a 55 MPG car, would cut that weekly bill to about £27.78 and save her over £280 a year on the same commute.
Now take Daniel, driving 300 miles from Bristol to Newcastle in a diesel estate that does 52 MPG on a steady motorway run, with diesel at 148p a litre.
The return leg costs the same, so the round trip is about £77.64 in fuel. Split between four people sharing the car, that is roughly £19.41 each, far less than the train for most groups. This is where a journey cost calculator earns its keep: it turns a vague "it'll cost a bit" into a figure you can split fairly or claim back.
If some of those miles are for work, you may be able to claim them. Employees using their own car for business journeys can claim a tax-free mileage allowance from their employer, or tax relief from HMRC if the employer pays less than the approved rate. That allowance is a flat pence-per-mile figure meant to cover fuel and wear, so it is not the same as your raw fuel cost here. Work out what you are owed with our mileage allowance calculator, and keep a running log with the mileage tracker so your claim stands up if HMRC asks. The official rules are on the gov.uk business mileage pages.
Thinking of going electric? Charging is priced per kWh, not per litre, so the comparison needs a different sum. Our EV charging cost calculator works out the cost of a journey on electricity, which lets you put the two fuels side by side honestly. To see the full running cost of any car including tax and depreciation, the cost per mile calculator goes a step further than fuel alone.
Small changes move the number more than people expect, because fuel cost scales directly with both consumption and price:
Once you know your weekly fuel spend, fold it into a wider plan. The budget calculator helps you sit fuel alongside the rest of your outgoings rather than treating it as an afterthought.
A few errors quietly throw the result off:
These estimates are for guidance only and are not personal tax or financial advice. Fuel prices change daily, so re-check the pump price for an accurate result.
To go further than fuel alone, try the cost per mile calculator for total running costs, the EV charging cost calculator to compare electric driving, and the mileage allowance calculator if any of your driving is for work and could be claimed back.
| Your mpg | £1.40/litre | £1.50/litre | £1.60/litre |
|---|---|---|---|
| 40 mpg | 15.9p | 17.0p | 18.2p |
| 50 mpg | 12.7p | 13.6p | 14.5p |
| 60 mpg | 10.6p | 11.4p | 12.1p |
Business drivers: log trips with the mileage tracker and check GOV.UK mileage rates. Electric? Compare with the EV charging calculator.
For working out what a specific journey costs in fuel — a commute, a regular trip to family, or a run you are deciding whether to make by car or train. Entering the frequency turns a small per-trip figure into the annual number, which is usually the one that changes behaviour.
The passenger split is genuinely useful for car sharing. Note that if this is business mileage in your own vehicle you should not be using fuel cost at all — you claim the approved mileage rate instead, which covers wear, insurance and depreciation as well as fuel. The mileage allowance calculator handles that.
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