You can create cost certainty with aris fleet vehicle management software technologies, including fleet data integration and realtime reporting. These figures can then be used to calculate average miles per gallon and cost of fuel per mile. Each time you fill up, note the number of gallons, how much you paid and the odometer reading. Maintenance and repair costs are estimated at nine cents per vehicle mile and weight. Measure costpermile and milespergallon improvement by vehicle or for your entire fleet. In 2004, the american automobile association adopted a new method for calculating vehicle operating costs that represent the realworld personal use of a vehicle over a fiveyear and 75,000 mile ownership period. The cost calculation framework is implemented in the programming language r with an input interface in microsoft excel. Cost per mile calculations are broken out by fuel type and distance between charges. We incorrectly listed the standard mileage rate for business use as 5 cents per mile. A higher mpge indicates a higher energy efficiency rating. To determine your driving costs accurately, keep personal records on all the costs listed below. Methodology for calculating cost per mile for current and.
Mileage reimbursement the true cost of running a car. The cost per seatkilometer c skm is calculated by dividing the cost per vehiclekilometer c vkm by the number of seats per vehicle seats v. See page 2 for a listing of vehicle makes and models used for driving cost calculations. An analysis of the operational costs of trucking american. A good fleet management system and the right eld solution can help you reduce cost and increase profits. We created a simple ratio and by answering 10 questions you will immediately have visibility into your total cost per mile cpm.
Aug 23, 2012 it provides the ability to create and distribute work orders to the shop floor for completion using a touchscreen workstation or a wireless handheld device. These rates are used to figure the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. That year, driving a car 10,000 miles per year cost 9 cents per mile, and gasoline sold for 27 cents per gallon. This will allow automotive wolf to accurately calculate exactly what your vehicle is costing you to own daily, monthly, yearly or to drive on a cost per mile basis.
Minimizing the actual cost of running a fleet should be one of your top priorities. Bar coding easily scan the bar code from any work order allowing the scanned information to appear instantly on the screen track tire usage track the wear of your tires via our new visual interface, it will even tell you the exact cost per mile over the entire life of the truck tire. In the case of hired driven vehicles, its the drivers time. Considering the direct and indirect costs, the cost per kilometer per vehicle is. Integrating our fuel cards lets us automatically collect odometer readings from drivers, which triggers preventative maintenance alerts in fleetio and helps keep our fleet on the road.
The internal revenue service has set the optional standard mileage rates for 2020. The default is 55 cents per mile which reflects the irss allowance for using your car for business purposes. Life cycle costing is the only way to judge vehicle costs or, a more effective measurement, vehicle productivity. With rhev, the more you charge, the more you save, giving you the cost savings and flexibility you need. Fuel consumption is probably the easiest cost to track, provided you dont mix up personal and business trips. Jun 10, 20 fleet managers understand that reducing cost per mile cpm by a single penny means huge savings, considering the number of miles a fleet drives each year. Jul 25, 2019 minimizing the actual cost of running a fleet should be one of your top priorities. Mileage, for example, is an important addon expense, estimated by dividing the average number of miles driven, by the mean fuel requirements during the evaluation period. Use the following four steps to determine your cost per mile. Reducing operating costs by monitoring driver behavior and vehicle conditions. Cost permile calculations are broken out by fuel type and distance between charges. Aaa says it costs about 74 cents per mile to drive slashgear. This paper is a summary of the development by the authors of a more accurate cost per mile calculator that allows the user to analyze vehicle acquisition and operating costs for both consumers and fleets. The fuel cost of driving an electric vehicle depends on the cost of electricity per kilowatthour kwh and the energy efficiency of the vehicle.
For example, to determine the energy cost per mile of an electric vehicle, select the location on. Extrafleet maintenance management software vehicle service. Appendix a describes how to use and update the spreadsheet program. The result is a holistic, customized set of recommendations that are tailored to your fleet. You can use this ratio on your current car or any future car you plan to buy. Considering the direct and indirect costs, the cost per kilometer per vehicle is obtained, according to the chart 5. How to calculate the life cycle cost of a security patrol. In order to calculate the cost of a security patrol vehicle in terms of productivity, youll need to use a method called life cycle costing. Not only that, but different cars can have dramatically different costs sometimes twice or 3 times as expensive per mile to operate when compared to another car. Fleet managers understand that reducing costpermile cpm by a single penny means huge savings, considering the number of miles a fleet drives each year. From fuel, cost per mile, safety and maintenance to even vehicle purchasing and replacement, we use analytical insights to add value by helping you manage your fleet ownership costs at every step. How do you calculate fleet total cost of ownership. As advanced vehicle technology development programs are undertaken, it is useful to have an understanding of the ownership and operating costs. Consider the indirect costs in a fleet that vary according to the number of vehicles, the following data are the cost per kilometer, as shown in the chart 4.
Costbased analysis of autonomous mobility services. Comparing energy costs per mile for electric and gasoline fueled vehicles. Calculating the total cost of ownership for your fleet fleetio. How to calculate cost per mile for your trucking company. Measure cost per mile and miles per gallon improvement by vehicle or for your entire fleet. Truck costing model for transportation managers mpc03. Average cost of owning and operating an automobile. Diesel price and atri fuel cost per mile index, 20062017. Aug 23, 2017 aaa says it costs about 74 cents per mile to drive. It is something that you should be doing regularly though, because it keeps you informed about how your business is performing, and optimally, its probably something you want to track on a monthtomonth basis. Thats why its important to use a car cost calculator to figure it all out. Mileage reimbursement the true cost of running a car keepek.
The software that was developed determines costs for a variety of truck. May 04, 2015 this graph shows the operating cost all parts and labor net of fuel per mile for 4. Reducing the number of vehicles in any given fleet is the most proven way to reduce overall costs. If you have specific questions about calculating cost per mile, it is also a good idea to consult a certified public accountant. Calculating your cost per mile is something that seems difficult at first but is actually pretty simple, if occasionally tedious. If you have a fleet maintenance software, all of your fleet data will be available. Help your customer to understand what your vehicle will do for their bottom line, by demonstrating the longterm lower costs of choosing your vehicle. If you own several vehicles this can be quite illuminating so youll know which vehicles are straining your check book. Cost per mile also allows you to determine an appropriate permile rate to charge shippers. This representation is an estimation and does not constitute a performance guarantee of any kind.
This method will tend to overestimate potential savings of a service cut or costs of a service expansion since it includes fixed. Plus, you can choose whether to compute the savings using the gasoline method cost of gasoline only or using the mileage method average cost per mile to own, operate, maintain and insure your car. The permile costs of operating automobiles and trucks lrrb. Todays fleet management software helps companies of all sizes keep track of vital information about. Show how lower fuel consumption, higher residual value and lower maintenance costs will offset vehicle price and. According to the company, is win8, win7, xp compatible, sql database, comprehensive, easy to use vehicle and equipment maintenance management software. The overall trend for both drive types is that the operating cost per mile is increasing as the vehicle ages. Fuel cost is not everything, the cost of the vehicle also needs to be spread out over the miles driven to calculate to total cost of ownership, per mile, for that vehicle. Compare fuel economy or costs per mile across vehicles.
Specific mechanical considerations also influence the total operating cost of a vehicle. I have written an article about fixed costs if you desire to gain an indepth understanding of this term. Aaa says it costs about 74 cents per mile to drive. Show how lower fuel consumption, higher residual value and lower maintenance costs will offset vehicle price and reduce cost per mile kilometre or cost per month. The fleet maintenance software of choice of over 4,000 private, forhire and public fleets, dossier lowers costs and downtime by automating control of your fleets records, pm scheduling, repair orders and histories, fuel costs and mpg, cost control with cost per milehr, parts inventory control w auto reordering, work pending and campaign. That year, driving a car 10,000 miles cost 9 cents a mile, and gasoline sold for 27 cents per gallon.
Maintenance cost per mile is excellent, something has to be wrong with your fuel cost per mile calculation. It provides the ability to create and distribute work orders to the shop floor for completion using a touchscreen workstation or a wireless handheld device. The total cost of owning and operating an automobile include fuel, maintenance, tires, insurance, license, registration and taxes. To calculate the cost per mile, divide the cost by the number of miles you drove that month. Aaa has looked at a bunch of different vehicle types and come up with some hard numbers for how much it cost to drive your vehicle per mile. This paper is a summary of the development by the authors of a more accurate costpermile calculator that allows the user to analyze vehicle acquisition and operating costs for both consumers and fleets. The tools provided in the ooida foundations cost of operation spreadsheet will help both types of owneroperators, as well as those looking to become an owneroperator, to understand and to track their costs. Miles per gallon for electric vehicles mpge, or miles per gallon equivalent places a value on your cars energy efficiency. Nasa official fleet management handbook performance metrics cost per mile cpm this is a report on nasaowned and gsa leased vehicles showing the total annual aggregated maintenance cost excluding accident costs for each vehicle divided by the total annual miles. Aaa has looked at a bunch of different vehicle types and come up with some hard numbers for. View the running costs, miles per gallon, fuel efficiency and emissions of s of vehicles at sustit, all ranked by cost per mile. For the cost per mile formula, fixed costs are those costs incurred either one time or regular ongoing costs that you must pay whether the vehicle leaves the lot or not.
Know your average trucking cost per mile paragon software systems. Request a free demo of the keeptruckin eld solution and. Vehicle make and model, as well as the area where it is housed, each impact the total annual insurance payment required. Request a free demo of the keeptruckin eld solution and experience how. The cost per seatkilometer c skm is calculated by dividing the cost per vehicle kilometer c vkm by the number of seats per vehicle seats v.
Comparing energy costs per mile for electric and gasoline. Cost of operation spreadsheet tools ooida foundation. Todays fleet management software helps companies of all sizes keep track of vital information about their vehicles as well as the employees who are behind the. Extrafleet maintenance management software vehicle service pros. Aris analytics tools that work across acquisition, upfitting, maintenance, fuel, downtime, compliance, safety and even vehicle remarketing. Many factors go into the cost calculation of owning and operating a vehicle, said john nielsen, aaa director of automotive engineering and repair. Fleet management software, fleet maintenance software fleetbip. Performance and luxury vehicle owners expect to pay the highest premiums. Knowing your companys operating expenses on a permile basis gives you the information needed to be profitable. If your cost per mile seems high, one solution is to take on more work. The latest data from the american transportation research institute atri says the average trucking cost per mile in the u.
Many fleets may choose to sell a vehicle after its seventh year of service while it still maintains some of its value. Gas mileage calculator find out your real mpg and learn how to improve it. Jan 17, 2019 miles per gallon for electric vehicles mpge, or miles per gallon equivalent places a value on your cars energy efficiency. Fleet expense tracking fleet management software locus. Aug 30, 2005 nasa official fleet management handbook performance metrics cost per mile cpm this is a report on nasaowned and gsa leased vehicles showing the total annual aggregated maintenance cost excluding accident costs for each vehicle divided by the total annual miles. How to calculate cost per mile for your trucking company rts. Fleetbip is the only automated fleet maintenance software in the industry. The your driving costs study employs a proprietary aaa methodology to analyze the costs of owning and operating a new vehicle in the united states, using data from a variety of sources, including vincentric llc. Jan 05, 2017 we created a simple ratio and by answering 10 questions you will immediately have visibility into your total cost per mile cpm. Standard mileage rates tweaked for 2020 drake software.