Truck operating cost per km, and how to quote
Every cost line in a truck trip, how fuel tax credits change the fuel cost, and the margin formula that turns cost into a quote per km, tonne or pallet.
The short answer
Add every cost of the trip, divide by total kilometres (loaded and empty) for cost per km, then price it as cost ÷ (1 − margin). In the example below, a round trip of 840 km costs $1,859.21 ($2.21/km) and quotes at $2,187.31 for a 15 % margin.
A worked example
These are example figures, not industry benchmarks. Replace every one with your own.
| Cost line | Amount |
|---|---|
| Fuel, after fuel tax credits | $715.04 |
| AdBlue | $19.22 |
| Driver wages and on-costs | $632.50 |
| Tyres and maintenance | $151.20 |
| Share of fixed costs (rego, insurance, finance) | $341.25 |
Why margin isn't markup
Margin is a share of the price, markup is a share of the cost. Pricing at cost × 1.15 gives a margin of 13 %, not 15 %. Use cost ÷ (1 − margin) to get the margin you actually want.
Don't forget empty kilometres
A trip that returns empty costs almost as much per kilometre on the way back. Spread the whole round trip over the paying load, or find a backload.
Common questions
How do I work out cost per km for a truck?
Add every cost of the trip (fuel after fuel tax credits, driver, tyres, maintenance, a share of fixed costs, tolls) and divide by the total kilometres, including empty running.
How do I add a margin?
Divide the cost by (1 − margin). For a 15 % margin, price = cost ÷ 0.85. Adding 15 % on top of cost gives only a 13 % margin.
Should fuel tax credits come off the fuel cost?
Yes, if you claim them. For diesel in a heavy vehicle on public roads the credit is paid back to you, so the real fuel cost is the pump price ex GST less the credit.
Sources
- ATO — Fuel tax credit rates for business — checked 2026-09-29
A guide, not legal advice. Your permit, notice, registration or accreditation can set different limits; check them before you rely on a figure here.