What is cost per mile (CPM) for fleets?

Cost per mile is the total operating cost divided by miles driven. It commonly includes fuel, maintenance, tires, insurance, depreciation, and downtime or overhead allocations.

How do I calculate fuel cost per mile?

Fuel cost per mile equals fuel price divided by MPG. For example, $3.75/gal at 15 MPG is $0.25 per mile.

Should I calculate CPM monthly or annually?

Either works. Monthly is better for coaching and operational decisions; annual is better for budgeting and total cost analysis. This tool provides both views.

Cost Per Mile Calculator (Free) | Moto Watchdog

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Cost Per Mile Calculator (Free)

Turn fleet expenses into one KPI: $ per mile. Combine fuel, maintenance, tires, insurance, depreciation, downtime, and overhead into a single number you can benchmark and improve.

True $/mile (all-in)

Fuel + maintenance + downtime

Scenario + CSV export

Compute $/mile

Enter monthly miles and costs. The calculator converts each cost into $/mile and totals everything.

Inputs

Scenario

Miles per month (per vehicle)

Fleet size (vehicles)

Fuel price ($/gal)

Real-world MPG

Maintenance + repairs ($/month per vehicle)

Tires ($/month per vehicle)

Insurance ($/month per vehicle)

Depreciation / ownership ($/month per vehicle)

Downtime (days/month per vehicle)

Downtime cost ($/day)

Overhead allocation ($/month per vehicle)

Optional: admin, compliance, shop overhead allocation.

Summary view

Want accuracy fast? Start with fuel + maintenance + downtime. Add the rest as you mature reporting.

All-in cost per mile

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Total $/mile across selected costs.

Monthly operating cost

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All included categories.

Annual operating cost

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Monthly × 12.

Fuel cost per mile (fuel price ÷ MPG)

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Category	$/month	$/mile	Share

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Scenario: improvement levers

Model small changes and see impact on $/mile (fuel price, MPG, maintenance, downtime).

MPG change (%)

Positive increases MPG (reduces fuel cost).

Maintenance change (%)

Negative reduces maintenance cost.

Downtime change (days/month)

Negative reduces downtime days.

Fuel price change (%)

Scenario label

Notes (optional)

This is a planning view—use it to prioritize which lever creates the biggest $/mile improvement.

Pair this with KPI Benchmarks

Once you have $/mile, benchmark it by vehicle class and route type.

Open Fleet KPI Benchmark

Metric	Baseline	Scenario	Delta

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Why $/mile is the fleet KPI that wins arguments

“We spent $X last month” doesn’t tell you what to fix. Cost per mile does. It normalizes spend by usage, making it easier to compare vehicles, routes, drivers, and vendors. If you only track one number, track this.

How fleets use cost per mile

Budgeting: forecast annual spend from expected miles.
Benchmarking: compare vehicle classes and depots fairly.
Replacement decisions: when CPM climbs, replacement timing becomes obvious.
Coaching: behavior impacts fuel CPM fast.

Cost Per Mile FAQ

Should I include depreciation?

If you want “true” CPM, yes. If you want operational CPM for coaching, track both: operational CPM (fuel + maintenance + downtime) and all-in CPM (adds depreciation + insurance).

What if miles vary a lot month-to-month?

Use a 3-month rolling average for miles and costs. CPM becomes more stable and useful.

How do I lower CPM fastest?

Usually: reduce idle time, improve driver behavior, tighten preventive maintenance, and reduce downtime through quicker repairs and better scheduling.

Disclaimer: Planning estimates only. Validate with your bookkeeping, maintenance records, and duty cycle.