Skip to main content
True Trade Path

Calculator · Free

Vehicle Cost Per Hour Calculator

Calculate the true hourly and per-mile cost of your work truck — payment, fuel, insurance, maintenance, and depreciation.

Monthly vehicle costs
$/mo
$/mo
$/mo
$/mo
$/mo

Oil, tires, brakes, washes — average over the year.

$/mo

Value lost per month. Not the same as tax depreciation.

Usage
hrs
mi

For mileage rate comparison.

Vehicle cost per billable hour

$143.35per hour

$18,636 per year across 1,560 billable hours.
Monthly total cost
$1,553
Annual total cost
$18,636
Cost per mile (actual)18,000 business miles
$1.04/mi
IRS standard mileage rate2025 rate — verify at irs.gov
$0.70/mi
Mileage deduction valueActual expense wins
$12,600
Monthly cost breakdown
ExpenseMonthlyAnnualShare
Payment / lease$520$6,24033.5%
Fuel$380$4,56024.5%
Insurance$210$2,52013.5%
Registration$18$2161.2%
Maintenance$145$1,7409.3%
Depreciation$280$3,36018.0%
Total$1,553$18,636100.0%

Actual expense method saves more

Your actual expenses ($18,636, $1.04/mile) exceed the standard mileage deduction ($12,600). Track actual expenses and keep receipts. You must choose one method per vehicle.

Build vehicle cost into your shop rate

At $143.35/billable hour, a truck costing $1,553/month must appear in your overhead recovery or trip charge. Shops that treat the truck as free underprice every job by $143.35/hour.

What this assumes

  • Costs are monthly figures annualized across your billable hours or business miles.
  • Depreciation is your estimate of value lost per year — not tax depreciation.
  • IRS standard mileage rate is $0.70/mile (2025); verify current rate at irs.gov.

Important

Vehicle costs must be built into your shop rate or recovered as a line item. A $900/month truck on 120 billable hours a month adds $7.50/hour before fuel.

Understanding the result

Your truck is a rolling overhead bill

Payment, insurance, registration, fuel, tires, and depreciation on a work truck run $800 to $1,500/month for most trade contractors. Divided across billable hours, that is $5 to $12 per hour — before the truck earns a single dollar.

Mileage rate vs. actual expense

The IRS lets you deduct $0.70/mile (2025) or actual expenses. A truck costing $14,000/year on 18,000 business miles is $0.78/mile actual — the mileage rate loses. A paid-off truck on 12,000 miles may favor actual expense. Run both.

Build it into the rate

If your truck costs $10/billable hour, your shop rate must recover it. Either include vehicle in overhead percentage or add a trip charge. Shops that treat the truck as 'already paid for' underprice every job.

Common questions

How much does a work truck cost per hour?
A typical contractor truck costs $800 to $1,200/month all-in. At 130 billable hours/month, that is $6 to $9/hour. Add fuel and the number reaches $8 to $12/hour — which must be in your shop rate or trip charge.
Should I use mileage rate or actual expenses?
Run both. The IRS standard mileage rate ($0.70/mile in 2025) is simpler. Actual expense (payment, fuel, insurance, maintenance, depreciation) often wins on newer, heavily-used trucks. You must choose one method per vehicle and stick with it.
Can I deduct my personal truck used for work?
Yes, for business miles only. Track every trip with an app or log. Commuting from home to a regular job site is not deductible. Mixed-use vehicles require a business-use percentage for actual expense method.
How do I recover vehicle cost in my pricing?
Include vehicle in your overhead percentage (25 to 35% of direct cost) or charge a trip/diagnostic fee ($95 to $175) that covers the first hour of windshield time. Either way, the truck cost must appear in the price — it does not disappear because the payment is automatic.
What vehicle expenses can contractors deduct?
Loan or lease payment, fuel, insurance, registration, maintenance, tires, washes, and depreciation. Parking at job sites is deductible; parking tickets are not. Personal use percentage reduces the deduction on actual-expense method.

You may also need

The next decision usually follows directly from this one.

Related trades

Where to go next