How to Calculate Mileage with Drive

When it comes to expense management, accurate mileage calculations are a top priority. Accurate mileage calculations help ensure compliance with company policy and proper documentation for Inland Revenue Authority of Singapore(IRAS) reporting purposes, where applicable.

You may want to calculate mileage traveled for employer reimbursement, car allowance calculations, or business expense reporting.

What are the main ways to calculate business mileage?

Most mileage calculations fall into four common approaches: a standard rate, actual expenses, GPS tracking (apps/devices), or manual odometer readings. The best option depends on how detailed you want your records to be and how you prefer to capture trips.

Standard rate

In Singapore, many organisations use a standard mileage reimbursement rate set by company policy rather than a government‑mandated figure. This rate is typically informed by IRAS requirements on reasonable business expenses, as well as prevailing market practices.

The standard rate is designed to cover typical vehicle operating costs such as fuel, depreciation, insurance, and maintenance. It is one of the most commonly used methods because it is simple to apply and reduces the need for detailed cost tracking.

Actual expense method

The actual expense method requires calculating the actual costs of using your vehicle for business needs, taking fuel, insurance, maintenance, and depreciation into account.

This option is more complicated than some of the other methods because it relies on tracking real vehicle costs.

GPS apps (including Drive)

Smartphone apps, like Drive, and GPS devices track and calculate mileage using GPS technology. This method is easy to use and also accurate.

With our Drive app, you can automatically upload to Concur Expense, streamlining the mileage reimbursement process.

Good ol’ odometer

A long-standing manual approach is to record odometer readings at the start and end of a trip, then use subtraction to calculate total kilometres driven. Many people still use this method.

A note of caution: this method is riskier because it’s prone to human error. As simple as it is, it’s not always the most accurate.

How do you calculate mileage reimbursement?

It’s reasonably straightforward to calculate your mileage as long as you keep good records and use the right reimbursement rate. If you prefer manual mileage capture, the Drive app can help you there, too, and you can switch between manual and automatic methods.

Step 1 — Keep business mileage records

Detailed records make it easier to calculate kilometres traveled and provide proof if your employer requires it. You can rack up kilometres by driving to client meetings, running business errands, or making site visits.

Any time you must drive to complete some aspect of your job, you should calculate the kilometres. No matter where you’re travelling, the Drive app supports you and measures kilometers worldwide.

Step 2 — Know the reimbursement rate

Mileage reimbursement rates can change over time, but the rate your company uses depends on internal policy, vehicle cost assumptions, and local tax considerations. Always check with your organisation to verify their reimbursement rate.

Step 3 — Calculate the reimbursement amount

Use this formula to calculate reimbursement:

(total kilometres for business) × (the reimbursement rate) = reimbursement amount

Example: Say this year you drove 600 kilometres for work purposes and the reimbursement rate is 65.5 cents.
600 × $0.655 = $393.00

Step 4 — Consider other factors that may affect your rate

Other factors can impact the rate you receive. If you use your own vehicle, your reimbursement rate is higher.

If your business provides a vehicle, the rate they allow you to use may be lower. With Drive, you can set parameters to help calculate your kilometres accurately.

Step 5 — Submit the report

Your employer likely has a specific expense report format. Follow their process and provide all requested information.

Details should include trip information, kilometres driven, and the reimbursement amount. Keep a copy of all records.

Best practices for accurate mileage calculation

To calculate mileage correctly for reimbursement and reporting purposes, focus on accuracy, detail, and consistency. These tips can help you follow regulations and reduce errors.

• Record mileage accurately and immediately (don’t rely on memory). Using the Drive app provides a reliable way to track mileage.
• Keep records detailed and accurate, including:
  • kilometres
  • starting point and destination
  • date
  • purpose of the trip
• Review your records and verify accuracy to catch errors. Use a mileage reimbursement calculator to confirm your numbers.
• For employee reimbursement, clearly separate business travel vs. personal travel.
• Follow your company’s best practices for how to calculate car allowance for employees for proper employee reimbursement.
• Use consistent, reliable methods to track and calculate your data.
• Verify mileage with map applications to confirm route distances.

Combining the Drive app with these tips and best practices can help you capture and calculate your kilometres correctly for reimbursement and reporting purposes.

FAQs

1) What are the main methods for calculating mileage?

The page describes four options: standard rate, actual expense method, GPS apps/devices (like Drive), and manual odometer readings.

2) How do GPS apps like Drive calculate mileage?

Apps like Drive track and calculate mileage using GPS technology, which is described as easy to use and accurate.

3) What is the mileage reimbursement formula?

(total kilometres for business) × (the reimbursement rate) = reimbursement amount.

4) Why should I confirm my organisation’s reimbursement rate?

The page notes that an organisation’s rate is often informed by IRAS requirements on reasonable business expenses, as well as prevailing market practices, but employers in Singapore may apply a different rate based on internal reimbursement policies.

5) What details should be included when submitting a mileage expense report?

Include trip details, kilometres driven, and the reimbursement amount, and keep copies of your records.