Free tool
Fleet Cost per KM Calculator
Work out what one vehicle really costs to run, per kilometre and over its whole life. Enter the purchase price, expected resale value, kilometres per year and yearly running costs, and the calculator returns cost per km, total annual cost and lifecycle TCO, plus a total for the whole fleet.
Yearly running costs per vehicle
Results
Cost per km
EGP 10.50
Cost per mile: EGP 16.90
- Annual operating cost
- EGP 240,000
- Annual depreciation
- EGP 180,000
- Total annual cost per vehicle
- EGP 420,000
- Lifecycle TCO per vehicle
- EGP 2,100,000
- Fleet total per year
- EGP 4,200,000
Planning estimate based on your inputs — not a quote.
What this calculator works out
The calculator turns a vehicle’s purchase price, resale value and yearly running costs into one number you can compare: cost per kilometre. It also shows the total annual cost, how much value the vehicle loses each year (depreciation) and the total cost of ownership (TCO) over the years you plan to keep it.
Cost per km answers "what does every kilometre this van drives cost us?". TCO answers "what will this vehicle cost us from the day we buy it to the day we sell it?". Fleet managers need both: the first for pricing deliveries and comparing vehicles in service, the second for buying and replacement decisions.
How to use the calculator
Use figures for one typical vehicle. If your fleet mixes vans, pickups and trucks, run the calculator once per vehicle type.
- 1
Choose your currency and fleet size
Pick EGP, SAR, AED, QAR, JOD, IQD or USD and enter how many vehicles of this type you run.
- 2
Enter the ownership figures
Purchase price, the resale value you expect at the end, and how many years you plan to keep the vehicle.
- 3
Enter kilometres per year
Use real odometer readings where you have them: the difference between two readings a year apart is better than a guess.
- 4
Enter yearly running costs
Maintenance and repairs including spare parts, fuel, insurance and registration, financing if the vehicle is financed, and any other costs such as tolls, parking or washing.
- 5
Read the results
Cost per km and per mile, annual operating cost, annual depreciation, total annual cost, lifecycle TCO and the annual total for the fleet.
The formulas behind the results
The calculator uses straight-line depreciation and simple yearly averages, so you can check every number by hand.
Annual operating cost
maintenance & repairs + fuel + insurance & registration + other costs
Annual depreciation
(purchase price − resale value) ÷ years of ownership
Total annual cost
annual operating cost + annual financing cost + annual depreciation
Lifecycle TCO
purchase price + (annual operating cost + annual financing cost) × years − resale value
Cost per km
total annual cost ÷ km driven per year
Cost per mile
cost per km × 1.609
Fleet annual total
total annual cost × number of vehicles
Worked example: a delivery van in Egypt (EGP)
For example, a company runs 10 delivery vans. Each van costs EGP 1,200,000, is kept for 5 years and is expected to sell for EGP 480,000.
| Input | Value |
|---|---|
| Purchase price | EGP 1,200,000 |
| Expected resale value | EGP 480,000 |
| Years of ownership | 5 |
| Km driven per year | 40,000 |
| Maintenance & repairs (incl. parts) | EGP 60,000 |
| Fuel | EGP 120,000 |
| Insurance & registration | EGP 45,000 |
| Financing cost | EGP 36,000 |
| Other costs | EGP 15,000 |
| Result | Value |
|---|---|
| Annual operating cost | EGP 240,000 |
| Annual depreciation | EGP 144,000 |
| Total annual cost | EGP 420,000 |
| Lifecycle TCO (5 years) | EGP 2,100,000 |
| Cost per km | EGP 10.50 |
| Cost per mile | EGP 16.89 |
| Fleet annual total (10 vans) | EGP 4,200,000 |
Depreciation is (1,200,000 − 480,000) ÷ 5 = 144,000. TCO is 1,200,000 + (240,000 + 36,000) × 5 − 480,000 = 2,100,000, which is the same as 420,000 × 5.
Second example: a pickup in Saudi Arabia (SAR)
For example, a field team runs 20 pickups bought for SAR 95,000 each, kept for 4 years and resold for SAR 35,000. Each drives 50,000 km a year, with SAR 6,000 of maintenance and repairs, SAR 9,000 of fuel, SAR 3,500 of insurance and registration, SAR 1,500 of other costs and no financing.
| Result | Value |
|---|---|
| Annual operating cost | SAR 20,000 |
| Annual depreciation | SAR 15,000 |
| Total annual cost | SAR 35,000 |
| Lifecycle TCO (4 years) | SAR 140,000 |
| Cost per km | SAR 0.70 |
| Fleet annual total (20 pickups) | SAR 700,000 |
Note how high mileage spreads depreciation over more kilometres: the pickup’s cost per km is low even though its yearly costs are real money.
How to read your result and what to do next
A single cost per km figure means little on its own. It becomes useful when you compare:
- Vehicle against vehicle. Run the calculator for two models you are considering. A cheaper vehicle with higher repair costs or a weak resale value can end up costing more per km.
- Year against year. If maintenance and repairs keep rising while the vehicle’s value keeps falling, the replacement point is getting closer.
- Against what you charge. If you bill customers per trip or per km, your cost per km is the floor under your price.
For a step-by-step method with more detail, read our guide on how to calculate vehicle cost per km, and for the long-term view see fleet total cost of ownership.
Limitations of this estimate
This is an estimate, not a quote or an accounting valuation. It assumes costs are the same every year, uses straight-line depreciation and ignores inflation, currency changes and tax treatment. Real repair costs usually rise as a vehicle ages, and resale values depend on the market when you sell.
Treat the result as a planning figure. Your finance team may use a different depreciation method for the books.
Keep these numbers up to date from real records
The calculator is only as good as the numbers you type in. In Axpense, those numbers come from records your team already keeps:
- Expenses per vehicle. Repairs, spare parts, insurance, registration and other costs are recorded against the vehicle, by category.
- Odometer readings. Each vehicle’s kilometres are on its record, so the distance side of cost per km is real rather than estimated.
- Depreciation. Book value over time is tracked for each vehicle, giving you the depreciation figure without a separate spreadsheet.
See how it fits together on our fleet cost tracking page, or book a demo to see it with your own vehicles.
Fuel costs in the same record
Fuel can be recorded as an expense on each vehicle alongside repairs and insurance, so the fuel line in your cost per km comes from actual spend.
Frequently asked questions
What is a good cost per km for a fleet vehicle?
There is no single benchmark. It depends on the vehicle type, fuel prices, how far it drives and how long you keep it. A van that drives 60,000 km a year will usually cost less per km than the same van driving 20,000 km, because fixed costs are spread over more distance. Compare against your own vehicles and against the alternatives you are considering.
Is TCO the same as total annual cost?
No. Total annual cost is what the vehicle costs in one average year. TCO covers the whole ownership period: purchase price plus all operating and financing costs, minus what you get back when you sell. In this calculator, TCO equals total annual cost multiplied by the years of ownership.
Should I include the driver’s salary?
The calculator focuses on the vehicle. If you want a full cost per km for pricing, you can add driver costs under "other costs", but keep it consistent when you compare vehicles.
Why is depreciation included in cost per km?
Because the value a vehicle loses is a real cost, even though no invoice is paid for it each month. Leaving it out makes expensive vehicles look cheaper to run than they are.
How is this different from a monthly fleet budget?
A budget adds up running costs for a month or year. This tool divides costs by kilometres and spreads the purchase over the ownership period. For building a budget, see our guide on how to calculate fleet costs.
Related Axpense pages
Related guides
How to Calculate Vehicle Cost per km: Formula and Worked Examples
The formula for vehicle cost per km, which costs to include, worked examples in EGP and SAR, and the mistakes that make the number misleading.
Read articleFleet Total Cost of Ownership: How to Calculate TCO and Compare Vehicles
How to calculate fleet total cost of ownership, compare two vehicles on TCO, and use the numbers to decide when a vehicle should be replaced.
Read articleHow to Calculate Fleet Costs and Build a Fleet Budget
How to calculate fleet costs for the whole fleet: fixed vs variable costs, cost categories, a 20-vehicle monthly budget in EGP and a variance review routine.
Read articleGet these numbers from your real records
Axpense keeps every vehicle’s service history, inspections and costs, so you don’t have to fill in a sheet each month.