Free calculator · Instant result
What Does My Vehicle Really Cost per Kilometre?
Work out what your work vehicle actually costs to run and own for every kilometre it drives: fuel, running costs, ownership and wear.
Your result
Enter your figures to see your result straight away. Nothing is sent anywhere.
Saved on this device only, for 30 days. Nothing is sent to BuzzBrain.
Travel is a real job cost. BuzzBrain Time Boost works out the true cost of each job before you quote, keeps quotes moving and shows what each job actually made. Free during private beta testing on iPhone and iPad.
See BuzzBrain Time Boost →Your results, explained
How it's worked out
Every yearly cost of the vehicle is added up and divided by the kilometres it drives.
- Fuel a yearKilometres ÷ 100 × fuel use (L/100 km) × fuel price
- Running costsFuel + servicing + tyres + repairs
- Wear and replacement(What it cost − what you expect to sell it for) ÷ years you keep it
- Ownership costsRegistration + insurance + finance interest + other costs + wear and replacement
- Cost per kilometre(Running costs + ownership costs) ÷ kilometres a year
Ownership costs don't go away when the vehicle is parked, so fewer kilometres means a higher cost per kilometre.
Worked example
A ute that drives 30,000 km a year, uses 11 L/100 km at $2.00 a litre, and costs $2,600 a year in servicing, tyres and repairs. Registration, insurance, finance interest and other costs add $5,400. It cost $65,000 and should sell for $30,000 after 5 years.
| Kilometres a year | 30,000 |
|---|---|
| Fuel | 11 L/100 km at $2.00 |
| Vehicle cost / resale / years | $65,000 / $30,000 / 5 |
| Annual vehicle cost | $21,600 |
|---|---|
| Cost per kilometre | $0.72 |
| A 50 km trip | $36.00 |
Fuel is only $0.22 of the $0.72. Ownership and wear make up most of the rest.
Assumptions
- If you're registered for GST, enter costs excluding GST. If you're not, include it.
- This is your actual operating cost. The ATO's cents per kilometre method is a tax deduction method with a set rate, not a measure of what your vehicle costs. Talk to your accountant about tax.
- Wear and replacement is a simple straight-line estimate. Real resale values vary.
- Finance principal repayments aren't a running cost: the vehicle's price is covered by wear and replacement.
This calculator estimates vehicle operating costs from the figures you enter. It isn't a tax method and isn't tax or financial advice.
FAQ
Vehicle Cost per km questions. Answered.
Is this the same as the ATO cents per kilometre rate?
No. The ATO rate is a set figure used to claim a tax deduction. This calculator works out what your own vehicle actually costs to run and own. Ask your accountant which tax method suits you.
Why include wear and replacement?
Because the vehicle loses value every year you use it, and one day you'll need to replace it. Leaving it out makes each kilometre look cheaper than it is.
Should I include finance repayments?
Only the interest. The principal pays for the vehicle itself, which is already counted in wear and replacement.
How do I use the cost per kilometre?
Multiply it by the kilometres a job needs, there and back, to see what the travel really costs. Your time travelling is separate.
Your next step
BuzzBrain Time Boost
Travel is a real job cost. BuzzBrain Time Boost works out the true cost of each job before you quote, keeps quotes moving and shows what each job actually made. Free during private beta testing on iPhone and iPad.
More from the Small Business Toolkit
What Does My Machinery or Equipment Really Cost per Hour?
Work out what a machine really costs per hour.
Calculate →What Should I Charge?
Price a job from its real costs and your margin.
Calculate →What Should My Hourly Rate Be?
Turn the pay you want into a real charge-out rate.
Calculate →
All pricing & profit tools →All 18 free tools →Find your best starting point →