Cost per kilometre: the one KPI every fleet operator must get right

If you run a commercial fleet, cost per kilometre (CPK) is the single most important number. Price your contracts wrong by even ₹1 per km and a 50-vehicle fleet leaks ₹25-40 lakh a year. Here's the correct way to calculate CPK.

The true formula

CPK = (Fixed costs + Variable costs) / Kilometres run

Simple. But almost nobody captures all the costs.

Fixed costs (monthly)

• Vehicle EMI or lease payment
• Insurance (motor + liability)
• Road tax and permit fees
• GPS / telematics subscription
• Driver base salary
• Parking and yard costs
• Fitness, PUC, permit renewals (amortised)

Variable costs (per km or per trip)

• Fuel (the biggest, often 35-50% of CPK)
• Tyres (amortise over lifetime km)
• Routine maintenance (oil, filters, brake pads — amortise over service intervals)
• Unscheduled repairs (last 12 months, divided by total km)
• Driver incentive / per-trip pay
• Toll charges
• Loading/unloading handling costs

What most operators miss

1. Unscheduled repairs — if you only book scheduled maintenance, you underestimate CPK by 15-25%.
2. Tyre amortisation — most operators book tyres when bought, not per-km.
3. Downtime cost — a vehicle off-road is still costing you fixed costs with zero km.
4. Driver idle time — loading and unloading are often paid but not captured against km.

Benchmark CPK ranges (India, 2025)

If your number is way outside these ranges, something in your accounting is wrong.

How GetAFix Fleet helps

Every fixed and variable cost flows automatically against the right vehicle — fuel via card integration, maintenance via WMS job cards, tyre amortisation calculated per km. CPK is a live dashboard, not a month-end spreadsheet. See it.