Cost per Mile / Cost per Kilometre
Average total operating cost per unit distance travelled
What is Cost per Mile / Cost per Kilometre?
Cost per mile or per kilometre is the average cost of running a fleet for each unit of distance covered. It shows the operating cost of moving vehicles.
For transport companies, it is a core measure for pricing, budgeting and finding savings.
How this KPI is measured
- Function
- Finance
- Sub-function
- Cost Management
- Industry
- Logistics & Transport
- Type
- Lagging
- Impact
- Financial control
- Unit
- $ per mile/km
- Measurement frequency
- Monthly
- Formula
- Total fleet operating costs / Total miles or kilometres covered
How to calculate it
Divide total fleet operating costs by total miles or kilometres covered.
For example, if a fleet cost 900,000 to operate over 1,500,000 km, the cost per kilometre is 0.60.
Include fuel, drivers, maintenance, tyres, insurance and depreciation, and use the same cost list each time.
Where it is used
Pricing services
Set rates above cost.
Controlling costs
Find savings.
Comparing vehicles and routes
Choose the best.
How to improve it
Tips and common mistakes
- Include empty running in the distance.
- Compare similar vehicles and routes.
- Track costs separately by type.
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