Cost Per Mile for Vans: How to Work Out What Each Van Really Costs You

A van’s cost per mile is its total running costs divided by the miles it drives. Fuel is only part of the picture: include insurance, vehicle tax, maintenance, tyres and depreciation too. For example, if a van costs £6,000 a year to run and covers 12,000 miles, that’s 50p a mile. These are illustrative figures, not an industry average.

Working it out with your own records can help you budget, price jobs and spot where costs might be creeping up.

What counts as a van running cost?

Start with the costs you pay to keep the van on the road and available for work:

• Fuel: use your actual fuel spend, rather than relying on a published mpg figure.
• Insurance: include the policy you need for how the van is used.
• Vehicle tax: record the amount that applies to your vehicle.
• Maintenance and repairs: include servicing, MOTs, repairs and breakdown cover.
• Tyres: account for replacements and puncture repairs.
• Depreciation: the value the van loses over the time you own it.
• Other costs: for example, parking, tolls, clean-air charges or work equipment fitted to the van.

You can keep costs in separate categories as well as adding them together. That makes it easier to see whether fuel, repairs or another area is driving the total.

How to work out your van’s cost per mile

Use costs and mileage from the same period, usually a full year. If you have several vans, calculate each one separately.

1. Choose your period. A year is a useful starting point. Note the odometer reading at the beginning and end.
2. List the annual costs. Gather receipts, invoices, insurance and tax records, fuel totals and any other relevant bills.
3. Add the costs you might overlook. Include tyres, MOTs, repairs, breakdown cover and depreciation, not just regular monthly bills.
4. Total the costs. Add the figures for that van and period.
5. Calculate the miles driven. Subtract the starting odometer reading from the ending reading.
6. Divide the total cost by the miles driven. The result is your cost per mile.

Formula: total van costs for the period ÷ miles driven in that period = cost per mile.

For example, £6,000 ÷ 12,000 miles = £0.50, or 50p per mile. If the van covered fewer miles but its costs stayed the same, its cost per mile would be higher.

Be clear about depreciation and finance

Depreciation matters because a van that loses value is still costing your business, even if you haven’t paid a repair bill. For a simple estimate, compare what you paid with what you expect to sell it for, then spread that difference across your ownership period.

If you lease or finance a van, be careful not to count the same capital cost twice. Pick a consistent approach for your records. If you’re unsure how to treat a cost for tax or accounting, check with your accountant.

Your cost-per-mile figure is a planning tool. It isn’t the same thing as an HMRC mileage allowance rate, which has a different purpose. Check GOV.UK’s guidance on mileage and fuel rates for current tax information.

What can push your cost per mile up or down?

Driving style and route

Repeated hard acceleration and braking can use more fuel and put extra strain on parts. Where practical, smoother driving and sensible route planning may help reduce avoidable fuel use and wear.

Your type of work matters too. Short, stop-start journeys, heavy loads and long periods of idling can all affect the costs you see. Use your own fuel and mileage records to understand what’s happening in real working conditions.

Maintenance caught early

A small issue can be cheaper to deal with before it becomes a larger repair. A faulty bulb or slow tyre leak may be straightforward to fix; leaving a defect unchecked could mean more repair work or a van that can’t do its next job.

Drivers’ checks can help bring defects to your attention, but they don’t replace servicing or make a vehicle roadworthy by themselves. For practical guidance, see our van walkaround check guide and information on MOT advisories.

Tyre care

Check tyres regularly for damage, wear and correct pressures, following the vehicle manufacturer’s guidance. Under-inflated or damaged tyres can affect how a van drives and may need replacing sooner. Regular checks can also help you spot a slow leak before it becomes a bigger problem.

Insurance and vehicle choice

Review your cover when it’s due for renewal, making sure it still matches how you use the van. Comparing suitable policies may help you find an option that fits, but don’t choose cover based on price alone.

The right size van for the work matters as well. A larger van may be useful for bulky loads, but if you rarely need the extra space, it’s worth checking whether its fuel, tyres and other costs make sense for your jobs.

Why calculate costs for each vehicle?

A fleet-wide average can hide what’s really happening. One van may be used more, need more repairs or use more fuel than another. Its cost per mile could be much higher, even if the overall fleet figure looks steady.

Comparing vehicles individually helps you ask better questions: Is a van overdue for maintenance? Is it doing enough mileage to justify its costs? Is one vehicle better suited to a particular job? A high figure isn’t automatically a reason to replace a van, but it’s a prompt to look more closely.

A simple spreadsheet can work well for one or two vans. If you’d rather keep costs and mileage together by vehicle, Motorlane Fleet tracks fuel, repairs, tyres and other costs, and shows cost per mile and real-world mpg. It records the information; owners and drivers remain responsible for maintaining their vehicles and meeting their obligations.

A quick checklist before you calculate

• Use costs and mileage from the same period.
• Record the van’s starting and ending odometer readings.
• Include fuel, insurance, vehicle tax, servicing, MOTs, repairs and tyres.
• Consider depreciation, and avoid counting finance costs twice.
• Divide total costs by miles driven.
• Compare each van with its own previous figures before drawing conclusions.

For related help, see our guides to vehicle tax checks and what to do after an accident, or explore vehicle reminders, driver checks and accident reporting. Motorlane Fleet has plans for small businesses, families and growing fleets.

General information only, not legal, tax or accounting advice. Check GOV.UK and speak to your insurer or accountant about your circumstances.

Try Motorlane Fleet free for 14 days, with plans from £4.99 a month. See pricing.