Cost per mile

A ratio which is obtained by dividing the total cost of the tire by the distance the tire has gone. The total cost involves adding up the initial price of the tire, price of retreading, repairs, rotation of tires, balancing tires, and other services. From this total any credits such as warranty, rebates, and trade-in value is subtracted. It must be remembered that when calculating the cost per mile of summer tires if winter tires were installed for a few months that only the number of miles that the summer tires were actually in use should be determined for this ratio. When purchasing tires, it may be helpful to divide the retail cost by the number of expected miles in order to compare one brand or one series against another.