Calculating the operating cost for a truck is very important to get the actual data regarding the profit or loss in the transportation business. But calculating the cost can be difficult since there are a lot of variables to consider as well as different types of costs. However, a truck operating cost calculator in Excel makes it easier for you. In this article, you will find ways to use a cost calculator in Excel to calculate the operating cost of your truck.
Download Practice Workbook
You may download the following workbook to practice yourself.
Truck Operating Cost Calculator in Excel: Create with 4 Easy Steps
Step 1: Calculate Fixed Costs
The first step in creating a truck operating cost calculator is to calculate the fixed cost of the truck. Initially, we will calculate the fixed cost for each month. Then, we will calculate it for a financial year.
- First, in the Cost Type column, give the names of various cost types like “Insurance”, “License” etc. We have added only 6 types of fixed costs to our dataset. Include more if your truck has other types of fixed costs.
- After that, add values in the Monthly Expense column and change the data type of that column into the Curreny
- Just after that, write down the following formula in the cell D5 and hit ENTER. Use Fill Handle to fill up the remaining cells as well.
You will find that some of the cells in Column D are blank. We have used the IFERROR function intentionally to keep it blank.
At this point, we will overwrite the formula in those cells and assign exact values in those cells (we kept those blank because some of the values (e.g. depreciation) are exclusively calculated after the end of every year).
- Double-click on a cell and then press
- Secondly, write down the value in the cell in a normal way.
- Finally, we will calculate the total fixed cost. In cell D11, write down the formula below to get the result.
Step 2: Determine Variable Costs
- Calculating variable costs is almost similar to calculating fixed costs. Just change the entries in the Cost Type column, like in the following image.
- The process of assigning values and formulas for the Monthly Expense and Yearly Expense columns is just the same as the Fixed Cost calculation (Step 1). Repeat them and get the following result.
Step 3: Find Total Costs
Calculating the total cost of a truck is very simple. Just add two types of costs using the SUM function.
- In our worksheet, we have kept the calculations of two types of costs on different sheets. So, while calculating total costs, we will give reference to those sheets, like in the following image.
- Do the same for variable costs as well.
- Now, apply the simple formula in cell C8 to get the total costs.
You will get the following result on your worksheet.
Step 4: Calculate Total Costs and Cost Per Mile
Since we have calculated the total cost of a truck in the previous step, we will divide that value by the Total Distance covered by the truck (in mile).
- Write down the total distance the truck has traveled in cell C10.
- Apply the following formula in C11 to get the Cost Per Mile
[Bonus!] Free Template for Truck Operating Cost Calculator
In the Excel file of the download workbook section, you will find an exclusive truck operating cost template. Use it to make your business easier. The following image will give you an idea of the template.
Things to Remember
- Over time, fixed costs remain the same while variable costs continue to increase as long as you operate your truck.
- Truck operating costs will vary according to the service life of the truck. Two trucks with the same configuration, but different service life will have different operating costs.
- Some other factors that influence truck operating costs are: fuel costs, fuel efficiency, driver wages etc.
Frequently Asked Questions
1. What does the term Cost Per Mile mean?
Cost per mile (CPM) is a metric used to measure the cost of delivering a service over a given distance.
2. How do you calculate trucking profit?
Trucking profit is calculated by subtracting total direct expenses, including fuel, maintenance, and truck-related costs, as well as indirect expenses like insurance, permits, and administrative costs, from gross revenue, resulting in the net profit figure.
3. How do you calculate truck efficiency?
You measure your trucks’ efficiency by expressing the revenue for one truck as a fraction of the total revenue in one month divided by the number of trucks you have.
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