Free tool · Pricing
Vehicle Cost and Bill Rate Calculator
A truck costs money every hour it is on a job, and most of that cost has nothing to do with fuel. This calculator adds up what it costs to own the vehicle and to run it, shows the cost per mile and per billable hour, and gives the bill rate that covers it and leaves the profit you want.
The numbers stay in your browser: we do not store or receive them.
The boxes start with example numbers for a service truck. Replace every one with your own.
Owning it
Running it
How much you use it
Cost per year
$20,925
$12,625 owning, $8,300 running
Cost per mile
$1.05
20,000 miles a year
Cost per hour
$13.95
1,500 billable hours
Bill rate per hour
$16.41
$2.46 of it is profit
Bill rate per mile
$1.23
at 15.0% margin
Same as a markup of
17.6%
on the cost
Miles per billable hour
13.3
| Cost | Per year | Per mile | Per hour |
|---|---|---|---|
| Depreciation | $7,000 | $0.35 | $4.67 |
| Interest on the average investment | $2,625 | $0.13 | $1.75 |
| Insurance | $2,400 | $0.12 | $1.60 |
| Registration and licenses | $600 | $0.03 | $0.40 |
| Fuel | $4,800 | $0.24 | $3.20 |
| Maintenance and repairs | $3,000 | $0.15 | $2.00 |
| Tires | $500 | $0.03 | $0.33 |
| Total | $20,925 | $1.05 | $13.95 |
Owning it
Depreciation is the value the vehicle loses while you own it, spread evenly over the years: (purchase price − resale value) ÷ years. Interest is the cost of the money tied up in it, figured on the average amount invested: (purchase price + resale value) ÷ 2 × the interest rate. Add insurance, registration and licenses, and any other fixed cost such as GPS or storage. These costs run whether or not the truck moves.
Running it
Fuel = miles per year ÷ miles per gallon × the price per gallon. Tires = the cost of a set ÷ the miles a set lasts × miles per year. Maintenance and repairs is a yearly figure you enter, and other per-mile costs covers electricity for an electric vehicle, tolls and similar. These costs grow with the miles you drive.
Cost per mile, per hour and the bill rate
The total for the year is divided by the miles to get the cost per mile, and by the billable hours to get the cost per hour. The billable hours are the hours you can charge the vehicle to jobs, which are usually far fewer than the hours it exists.
Bill rate = cost ÷ (1 − profit margin). Margin is a percent of the price, so a 15 percent margin means dividing by 0.85. That is the same as a markup of 17.6 percent on the cost; the markup vs margin calculator shows the two side by side.
A worked example
A $55,000 service truck that will be worth $20,000 after 5 years loses $7,000 a year, and at 7 percent the interest on the average $37,500 invested is $2,625. With $2,400 of insurance and $600 of registration, owning it costs $12,625 a year.
Driving 20,000 miles a year at 15 miles per gallon and $3.60 a gallon takes $4,800 of fuel. With $3,000 of maintenance and a $1,000 set of tires that lasts 40,000 miles ($500 a year), running it costs $8,300. The total is $20,925 a year, or $1.05 a mile.
Over 1,500 billable hours that is $13.95 an hour, and a 15 percent margin makes the bill rate $16.41 an hour, or about $1.23 a mile.
What this does not do
It figures the vehicle only. The driver belongs in the labor burden calculator, and trailers, attachments and the cost of downtime are not included. The boxes start with example numbers, and fuel prices, insurance, repair costs and resale values differ a lot by vehicle, region and use, so replace each one with your own. Depreciation is a straight-line planning figure, not a tax depreciation schedule. It is a pricing aid, not tax or accounting advice.
FAQ
How do I figure what my truck costs per hour?
Add the yearly cost of owning it (depreciation, interest, insurance, registration) and running it (fuel, maintenance, tires), then divide by the hours a year you can bill it to jobs. The calculator does that and also gives the cost per mile.
Why is the cost per hour so much higher than fuel alone?
Fuel is only part of it. A truck loses value, ties up money, and needs insurance and registration even when it sits. Those fixed costs have to be covered by the hours you bill.
What are billable hours for a vehicle?
They are the hours the vehicle is working on jobs that you can charge for. It is usually well under the hours it is owned, since trucks are idle on weekends, in the shop and between jobs.
Should I charge by the hour or by the mile?
Either works, as long as it covers the cost. Hourly suits a truck that sits on a job site, and per mile suits delivery and travel. The calculator gives both from the same costs.
How do I estimate the resale value?
Look up what similar vehicles with the miles and age you expect sell for. A guide or a dealer can help. The lower the resale value, the more depreciation you carry each year.
Is anything I type saved?
No. The calculation runs in your browser and nothing is stored or sent to us.
Want these rates to flow into your bids? PoPs Estimating prices the work with your own rates and keeps the quantities tied to the bid.
Questions?
Ask us anything about PoPs Suite, pricing, or running a construction company. A real person answers, usually within a business day.