Most drivers know what fuel costs. Fewer know what a mile costs once insurance, tax, finance, repairs and tyres are counted. That number is the floor for every price you quote.
Fixed costs are what you pay however far you drive: insurance, vehicle tax, finance or depreciation, tracker or phone, accountancy and admin. Variable costs rise with every mile: fuel, servicing, tyres and repairs.
Cost per mile = (annual fixed costs ÷ annual miles) + fuel per mile + maintenance per mile
| Item | Amount |
|---|---|
| Annual fixed costs: insurance £2,200, vehicle tax £360, finance or depreciation £2,800, tracker and phone £240, admin £400 | £6,000 a year |
| Annual miles | 25,000 |
| Fixed cost per mile (£6,000 ÷ 25,000) | 24p |
| Fuel: 35 mpg, diesel at £1.50 a litre | about 19.5p |
| Servicing, tyres and repairs | 10p |
| Total cost per mile | about 53.5p |
On a 120-mile job, that is about £64.20 before any zone charges and before paying yourself for your time. Quote less than that and you are paying to work.
Fixed costs are spread over your miles. If the same driver only covers 15,000 miles, fixed cost per mile jumps from 24p to 40p. Quiet months matter as much as busy ones.
Open the free cost per mile calculator
Yes, but separately. Cost per mile covers the vehicle. Your time is the profit you aim for on top.
Whenever fuel prices, insurance or your mileage change noticeably. Quarterly is a sensible habit.
Ripe Vision 1.0 shows zone charges, loading-restriction fine risk, fuel and running cost, and what the job really pays before you dispatch. London and major UK cities, 30-day free trial.
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Figures are examples and the charge rates were checked in October 2026. Rates, hours and rules change, so confirm them with Transport for London or the relevant authority before you rely on them. This is general guidance, not legal or financial advice.