Calculate daily per diem allowances for business travel including lodging and M&IE. Estimate total reimbursement by trip length.
Per diem (Latin for "per day") is a daily allowance paid to employees for lodging Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process. This tool handles all the complex arithmetic so you can focus on interpreting results and making informed decisions based on accurate data. Accurate estimation helps you plan ahead, compare scenarios, and optimize outcomes for better overall results in your specific situation., meals, and incidental expenses while traveling on business. The U.S. General Services Administration (GSA) sets per diem rates for domestic travel, varying by location and time of year. The Department of Defense establishes rates for international travel.
This Per Diem Calculator helps you estimate total travel reimbursement by multiplying the daily lodging and M&IE (Meals and Incidental Expenses) rates by the number of travel days. You can enter custom rates for your destination or use standard amounts to quickly estimate trip costs.
Accurate per diem calculations help businesses budget for travel, ensure employees receive proper reimbursement, and maintain IRS compliance. When per diem payments do not exceed the federal rate, they are generally not taxable to the employee and do not require itemized receipts.
Travel reimbursement errors cause frustration for employees and compliance headaches for employers. This calculator ensures accurate per diem totals based on lodging and M&IE rates Having a precise figure at your fingertips empowers better planning and more confident decisions. Manual calculations are error-prone and time-consuming; this tool delivers verified results in seconds so you can focus on strategy., automatically handles first and last day reductions (75% M&IE), and gives a clear trip total for budgeting and expense reporting.
Total Per Diem = (Lodging × Nights) + (Full M&IE × Full Days) + (M&IE × 75% × First/Last Days)
Result: $918 total trip per diem
Lodging: 4 nights × $150 = $600. M&IE: Day 1 and Day 5 at 75% = 2 × $48 = $96. Days 2–4 full = 3 × $64 = $192. Total M&IE = $288. Grand total = $600 + $288 = $888.
The GSA establishes per diem rates for approximately 400 designated high-cost locations across the continental United States. All other locations receive the standard CONUS rate. Rates consist of two components: a maximum lodging amount and a fixed M&IE allowance.
For international travel, the Department of State establishes per diem rates that can vary dramatically by country and city. Rates for major cities like London, Tokyo, and Zurich can exceed $400/day for lodging alone, while developing nations may have rates under $100/day total.
The IRS accountable plan rules require employees to substantiate travel with dates, locations, and business purpose. When per diem payments follow these rules and don't exceed federal rates, they are excluded from the employee's taxable income and are deductible by the employer.
M&IE stands for Meals and Incidental Expenses. It covers breakfast, lunch, dinner, and incidentals like tips for service, laundry, and dry cleaning. The GSA sets M&IE rates for each location, ranging from $59 to $79 for most U.S. destinations.
If per diem payments are at or below the federal rate and the employee provides a proper expense report with dates and locations, the payments are not taxable. Payments exceeding the federal rate must be reported as taxable income.
The federal per diem standard provides 75% of the M&IE rate on the first and last day of travel because employees are typically not on travel status for the full day. Some employer policies may use different percentages or provide full rates.
Visit the GSA website (gsa.gov/perdiem) for domestic rates. Enter the city, state, or zip code for the specific rate. Rates are organized by county and can vary significantly even within the same state. The standard CONUS rate applies to locations without specific listings.
Under the federal system, actual lodging expenses above the per diem rate are the employee's responsibility unless a higher rate is approved by a supervisor. Many employers have policies for approving elevated rates in high-cost areas.
Yes, private employers can set per diem rates above, at, or below the GSA rates. However, using rates at or below the GSA maximum simplifies tax treatment, as no employee reporting is required and the payments are non-taxable.