Fleet cost management: measure and reduce cost per km

The cost structure of a truck

Fuel is usually the single largest cost, but fixed costs are what turn an idle day into a loss.

Measure cost per km for every vehicle

Cost per km = (all costs for the month) ÷ km run. Calculate it per vehicle, not per fleet average — averages hide the two or three trucks that lose money. Our fleet cost calculator shows the split between fixed and variable cost per km.

Control fuel

• Log every fill with odometer reading; compute mileage between full-tank fills.
• Compare mileage by vehicle and by driver on similar routes; investigate drops of more than 8–10%.
• Use fuel cards or fixed pumps where possible to reduce cash handling.
• Use GPS distance to cross-check odometer and claimed trips.

Control tyres and maintenance

Record tyre fitments by position with the km at fitment and removal. Cost per km per tyre exposes brands and positions that wear out early. Service by km and date, and track repeat breakdowns per vehicle — a vehicle that keeps breaking down is often cheaper to replace.

Raise utilisation and cut empty running

A truck that runs 10,000 km a month spreads its fixed cost over twice the distance of one that runs 5,000 km. Plan return loads, shorten loading and unloading waits, and track idle days per vehicle.

Settle drivers properly

Advances given in cash on the road must be settled against trip expenses with bills. A driver wallet — advances in, approved expenses out — keeps balances clear and reduces disputes.

Profit per trip and per vehicle

Finally, connect revenue: each LR/consignment belongs to a trip, and each trip to a vehicle. Trip profit = freight − trip costs; vehicle profit = sum of trip profits − fixed costs. Try the trip profit calculator.

Frequently asked questions