Driver location
New York, NY
Cost of driving
High
Miles driven/mo
1,000 mi
CPM payment
$725
Underpaid
FAVR payment
$784
Fair payment
Fixed and Variable Rate (FAVR) Reimbursement
FAVR is an employee mileage reimbursement method that helps companies save money while providing accurate, tax-free reimbursements to employees.
How FAVR can lower reimbursement costs
Cents-per-mile (CPM) reimbursement pays each driver one rate for every mile, determined via a national average of driving costs.
FAVR is an IRS program that takes those same driving costs and breaks them into a fixed-monthly payment and a variable per-mile rate, using vehicle and location-based cost data to make reimbursements more precise.
FAVR breakdown:
Fixed payment
Paid every month, regardless of miles driven.
Depreciation
Insurance
Taxes
Registration
Variable payment
Per-mile rate paid for miles driven for work.
Gas
Maintenance
Tires
Compare mileage programs:
Programs
Mileage reimbursement /mo
CPM
IRS rate
$0.76 x 2,000mi
Monthly reimbursement
=
$1,520.00
VS
FAVR
Fixed
$412
+
Variable
$0.21 x 2,000mi
Monthly reimbursement
=
$832.00
2,000 business miles/mo
See what FAVR could look like for your team
TripLog can help you evaluate your mileage program, identify which drivers may be a fit for FAVR, and get the right setup in place.
Multiple programs, one platform
FAVR or CPM? Most companies need both.
Most companies don't have one type of driver. Some employees drive occasionally, while others cover thousands of miles every month. Some teams use mid-sized sedans, while others need heavy-duty trucks.
TripLog helps you group drivers by mileage, role, location, and vehicle type, then assign the reimbursement program that fits each group best.
Program 1: CPM
+65
Avg. 3,100 mi/yr
Program vehicle: Not applicable
Program 2: FAVR
+65
Avg. 15,000 mi/yr
Program vehicle: Not applicable
Program 3: FAVR
+65
Avg. 25,000 mi/yr
Program vehicle: Fullsize truck
Why location matters
Is your reimbursement actually fair?
CPM uses one national rate, no matter where employees live or drive. FAVR provides more accurate reimbursements based on location, mileage, and vehicle costs, so each driver’s payment better reflects their actual cost of driving.
Ready to build the right
reimbursement program?
Whether your team needs CPM, FAVR, or a mix of both, you can trust the mileage experts at TripLog help you get started.