Fair Car Allowance Calculator

Formula

The formula to calculate the Fair Car Allowance (FCA) is:

\[ FCA = M \times 0.656 \]

Where:

$ FCA $ is the Car Allowance (\$).
$ M $ is the miles driven.

What is Fair Car Allowance?

Fair Car Allowance is the amount of money reimbursed to an employee for using their personal vehicle for business purposes. It is calculated based on the miles driven and a predetermined rate per mile. This ensures that employees are fairly compensated for the wear and tear, fuel, and other expenses incurred while driving for work.

Example Calculation

Consider an example where:

Miles Driven (M): 500 miles

Using the formula to calculate the Fair Car Allowance:

\[ FCA = 500 \times 0.656 = 328 \text{ \$/mile} \]

This means that the fair car allowance for this example is $328.