Strategic Fleet Control: The tool to honor contracts, increase trust and optimize your operations.
Many companies think cost per km is just “fuel + tolls”, but hidden expenses can double the real value. Here’s a complete formula to calculate it and make data-driven decisions.
1. Cost per Kilometer (CPK) Formula
Basic structure:
CPK = (Fixed costs + Variable costs) / Kilometers driven
A. Fixed Costs (paid even if the vehicle is idle):
- Vehicle depreciation:
- (Purchase price – Residual value) / Useful life in km.
- Example: 100K truck with 20K residual value and 500K km lifespan → $0.16/km.
- Insurance and licenses: Annual cost / estimated annual km.
- Loan interest (if applicable).
B. Variable Costs (usage-dependent):
- Fuel: Liters consumed x price per liter.
- Maintenance:
- Oil changes, brakes, tires (proportional per km).
- Example: 1,200 every 15K km → 1,200 every 15K km → 0.08/km.
- Unexpected repairs: Annual historical average / annual km.
- Tires: Cost per set / lifespan in km.
- Tolls and parking.
C. Hidden Costs (often overlooked):
- Idle time: Hours waiting during loading/unloading.
- Fines and accident-related insurance hikes.
- Unused capacity: Trips with partial loads.
2. Practical Example (Real Calculation)
Vehicle: Freight truck (drives 50,000 km/year).
| Concept | Annual Cost | Cost per Km |
| Depreciation | $8,000 | $0.16 |
| Insurance | $2,500 | $0.05 |
| Fuel (30L/100km) | $15,000 | $0.30 |
| Maintenance | $4,000 | $0.08 |
| Tires (6 sets) | $3,600 | $0.07 |
| Subtotal | $33,100 | $0.66 |
| Hidden Costs | $6,000 | $0.12 |
| TOTAL | $39,100 | $0.78/km |
✅ Conclusion: The real cost is 18% higher than the “simplified” calculation (0.66 vs 0.78).
3. 3 Common Calculation Mistakes
❌ Ignoring depreciation: A vehicle loses value each year.
❌ Not prorating maintenance: A repair at 100K km should be spread over that mileage.
❌ Overlooking idle time: A truck idle 4 hrs/day costs $12K/year in wasted capacity.
4. How to Reduce CPK (3 Proven Strategies)
- Route optimization: Tools like Google Routes or OptimoRoute can save up to 15% in fuel.
- Preventive maintenance: Extends tire and brake lifespan by 30%.
- Driver training: Efficient driving reduces fuel consumption by up to 10%.
Success Story:
*Colombian transport company that reduced CPK from 0.82 to 0.68/km in 6 months with telemetry and training.*