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Truck running cost per km in India: what to include
"What does my truck cost per kilometre?" sounds like it has one answer. It has four, depending on what you include and which kilometres you count. This guide works through all four for one truck, and shows which one to use for which decision.
In short
- Variable cost per km (diesel, tolls, driver allowance, wear) is the floor for any trip.
- Add fixed costs to get operating cost per km. This figure goes up when the truck runs fewer kilometres.
- Add interest and depreciation for the full cost of owning the truck.
- If rates are quoted per loaded km, divide by loaded km. Empty kilometres still have to be paid for.
The example truck
We use the same truck as our other guides. It does 8 round trips a month. Each trip is 1,000 km, with 750 km loaded and 250 km empty. That's 8,000 km a month, of which 6,000 km are loaded. Every figure below is an example: replace it with yours.
Layer 1: variable cost per km
These costs only happen when the truck moves. For one 1,000 km trip:
| Diesel: 1,000 km ÷ 4 km/l × ₹90/l | ₹22,500 |
| Tolls | ₹6,000 |
| Driver trip allowance | ₹3,000 |
| Tyres and maintenance reserve: ₹3/km | ₹3,000 |
| Loading and other trip expenses | ₹500 |
| Variable cost per trip | ₹35,000 |
| Per km: ₹35,000 ÷ 1,000 km | ₹35.00 |
Diesel is about two-thirds of this, which is why mileage matters so much. See our guide on calculating diesel cost for a trip.
Don't skip the wear reserve. Tyres and repairs aren't paid on every trip, but they're caused by every kilometre. If you leave them out, trips look ₹3,000 better than they are, and a ₹60,000 tyre bill later feels like bad luck when it was a cost all along.
Layer 2: add fixed costs
Driver salary, insurance, permits, road tax and parking are paid every month whether the truck runs or not. In the example they total ₹47,000 a month.
| Variable: 8 trips × ₹35,000 | ₹2,80,000 |
| Fixed costs | ₹47,000 |
| Operating cost for the month | ₹3,27,000 |
| Per km: ₹3,27,000 ÷ 8,000 km | ₹40.88 |
This is where cost per km moves with how hard the truck works. Fixed costs don't change, so the fewer kilometres, the more each one carries:
| Trips in the month | Km | Fixed cost per km | Operating cost per km |
|---|---|---|---|
| 8 | 8,000 | ₹5.88 | ₹40.88 |
| 6 | 6,000 | ₹7.83 | ₹42.83 |
A slow month costs nearly ₹2 more per km on every kilometre the truck does run. That's why "trips per month" is the number to get right first: see how many trips a truck can really do.
Layer 3: add the cost of owning the truck
The truck itself costs money in two ways that don't appear on a trip sheet:
- Interest on the loan: ₹25,000 in the first month of a ₹30 lakh loan at 10%.
- Depreciation, the truck losing value as it ages. In our example that's ₹20,000 a month.
| Operating cost | ₹3,27,000 |
| Interest (month 1) | ₹25,000 |
| Depreciation | ₹20,000 |
| Full cost for the month | ₹3,72,000 |
| Per km: ₹3,72,000 ÷ 8,000 km | ₹46.50 |
The principal part of the EMI is not in this figure, because repaying a loan isn't a cost. The EMI vs profit guide explains why, and why your cash can still fall short.
Layer 4: per loaded km
If customers pay per loaded kilometre, compare their rate with your cost per loaded km. The truck runs 8,000 km but only 6,000 of them earn:
| Operating cost ÷ 6,000 loaded km | ₹54.50 |
| Full cost ÷ 6,000 loaded km | ₹62.00 |
A rate of ₹50 per loaded km looks comfortable next to ₹40.88 per km. Against the real figure of ₹54.50 per loaded km, it loses money on every trip.
Which number to use when
| Decision | Use | Example |
|---|---|---|
| Absolute minimum for a one-off return load | Variable cost per km | ₹35.00 |
| Everyday quoting | Operating cost per loaded km, plus margin | ₹54.50 |
| Is the truck worth owning? | Full cost per km | ₹46.50 (₹62.00 per loaded km) |
| Will the bank balance go up? | Cash view: costs + full EMI | ₹48.84 per km |
The first row needs care. Taking a return load at just above variable cost is better than running empty, because it adds something towards fixed costs. But if most of your loads are priced like that, the fixed costs and the EMI never get covered.
Run it with your own numbers
Enter your truck, route and costs. FleetProfit shows cost per km and per loaded km, and keeps variable cost, operating profit and cash separate, with the working on every line.
Open the trip calculatorCommon questions
Should I compare freight rates with cost per total km or per loaded km?
Per loaded km, if the rate is quoted per loaded km. Empty kilometres earn nothing, so their cost has to be recovered from the loaded ones. Comparing a per-loaded-km rate with a per-total-km cost makes every trip look more profitable than it is.
Why does my cost per km go up when the truck runs less?
Fixed costs such as salary, insurance and permits stay the same each month. Spread over fewer kilometres, each kilometre carries more of them.
Is the EMI part of cost per km?
Not as an operating cost. Interest is a cost of owning the truck and depreciation is the cost of the truck wearing out. Together they give the full cost. The whole EMI belongs in the cash view, which tells you whether the bank balance goes up or down.
How do I set the tyre and maintenance reserve?
Add up what you spent on tyres, servicing and repairs over the last year and divide by the kilometres run in that year. Use a longer period if you have the records, because big bills don't come every month.