Free calculator · Business
Vehicle & Travel Cost Calculator
Your van costs more to run than the fuel in the tank. Work out what each mile or kilometre really costs, and what a fair travel charge looks like once your own time is included.
The short version
Add up everything the van costs in a year, not just fuel, and divide by the distance you drive. That is your true cost per mile or kilometre. Multiply it by the length of a trip and add the time you spend driving, and you have a fair travel charge instead of a guess.
Travel charge = (Annual van cost ÷ distance a year) × trip distance + driving time × your hourly rate
The van is a cost of every job
Fuel is the cost you notice, so it is the one most trades price in. But insurance, servicing, tyres, repairs and the slow loss of value all keep ticking whether the van moves or not. Add them up and the cost of each mile is usually a lot higher than the fuel alone suggests.
If the van costs $13,000 a year and you drive 20,000 km, every kilometre costs 65 cents, not the 22 cents of fuel. A 30 km round trip is a $19.50 cost before you have counted a minute of your own time.
Do not forget your own time
Driving to a job is time you cannot bill to another customer. If it takes 45 minutes, that is 45 minutes of your hourly rate, on top of the vehicle cost. Leaving it out is how a travel charge ends up covering the fuel and none of the wage.
Use it for call-outs and distant jobs
A flat call-out fee, a travel line on a quote, or a minimum charge for far-away work all get easier to justify when you can show the number behind them. It also tells you when a distant job is simply not worth taking at the price offered.
Questions tradespeople ask
What should I include in my van running costs?
Fuel or charging, insurance, registration, servicing, tyres, repairs, and either depreciation or finance payments. Leave out things you would pay anyway regardless of the van, like your phone.
Should I count personal driving?
The calculator divides by all the distance you drive, so personal use is included in the per-distance cost. If a lot of the driving is personal, you may want to separate those costs or only count the work share. Check how your tax authority treats it.
How do I charge for travel on a job?
Many trades add a travel line to the quote, charge a flat call-out fee, or set a minimum charge for jobs outside a certain distance. Whichever you use, base it on a calculated cost rather than a guess.
Do I charge travel time as well as distance?
Usually yes. Driving time is time you cannot bill elsewhere, so it has a cost. Some trades include it in the call-out fee and some list it separately, as long as it is covered somewhere.
Is the cost per mile the same as the tax mileage rate?
Not necessarily. Tax authorities set their own mileage rates, which may be higher or lower than your real cost. Use this figure to price your work and check the official rate separately for tax.
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