Fleet Total Cost of Ownership (TCO)
Calculate the true 5-year total cost of owning and operating a commercial vehicle, including depreciation, fuel, maintenance, and cost per kilometre.
Results
What is it?
Total Cost of Ownership (TCO) is the complete financial picture of owning and operating a vehicle over its full service life. It goes beyond the sticker price to include depreciation, fuel, maintenance, insurance, and registration � giving a true cost-per-kilometre figure for fleet budgeting.
How to use
Enter the purchase price, estimate annual fuel and maintenance costs, set the expected residual (trade-in) value as a percentage, and define the vehicle life in years and annual kilometres. The calculator computes the full TCO and a per-km rate for route costing and rate setting.
Example scenario
A $80,000 truck driven 100,000 km/year for 5 years, with $12,000 fuel + $5,000 maintenance annually and 30% residual value: Total depreciation $56,000 + running costs $85,000 = $141,000 TCO ? $0.282/km.
Pro tip
Use cost-per-km to set your freight rates. A minimum viable rate is TCO per km + driver wages per km + profit margin. For electric vehicles, fuel cost drops 60-70% but purchase price and battery replacement add significant capital cost � always compare full TCO, not just fuel savings.