The True Cost of Running a Work Truck (Most Contractors Get This Wrong)
Most contractors know their truck payment. Almost none know their cost per mile. Those two numbers are far apart, and the gap between them is money you are losing on every job that involves driving.
Why the IRS Rate Does Not Apply to Your Truck
The IRS standard mileage rate (67 cents in 2024) is calculated on the average American passenger vehicle. Your work truck is not an average passenger vehicle. It carries equipment, pulls trailers, runs year-round in weather, and gets driven hard on job sites. A fully loaded F-250 with a service body costs more per mile to operate than a Camry. In most cases, significantly more.
The practical effect: if your actual cost per mile is $1.10 and the IRS rate is $0.67, you are absorbing $0.43/mile in unrecovered cost on every business mile you drive. At 18,000 miles/year, that is $7,740 in annual under-recovery. You are subsidizing your customers’ job costs with your own money.
The Full Cost Stack
Payment or depreciation: if you own the truck outright, depreciation is still a real cost. A $45,000 truck over 7 years is $6,400/year in depreciation before it is worth $13,000 at trade-in. Insurance: commercial auto on a work truck runs $2,400–$5,000/year depending on state, coverage, and record. Fuel: at $3.50/gallon and 14 MPG average, 18,000 miles costs $4,500/year. Maintenance: oil changes, brakes, tires (commercial tires are $250–$350 each × 6 tires = $1,500–$2,100 per set), and unexpected repairs. At 18,000 miles, budget $3,500–$6,000/year in maintenance.
Total: a well-maintained work truck commonly runs $15,000–$22,000/year in operating cost. At 18,000 miles, that is $0.83–$1.22/mile.
What This Means for Job Pricing
If you price jobs without factoring truck cost, you are pricing overhead wrong. Use the Truck Cost Per Mile Calculator to enter your payment, insurance, fuel spend, maintenance budget, and annual mileage. The calculator shows your true CPM, compares it to the IRS rate, and shows the annual gap. Then decide whether to build a mileage charge into job quotes or include estimated drive cost in your overhead rate. Either way, you need to know the number before you can manage it.
Frequently Asked Questions
What is the true cost of running a work truck per mile?
For most solo contractors, true cost runs $0.85–$1.40/mile when you include payment or depreciation, insurance, fuel, maintenance, tires, and registration. The IRS standard mileage rate (67 cents in 2024) covers the average passenger vehicle — work trucks with high payload and equipment loads typically cost significantly more.
Should I use the IRS mileage rate or actual costs for taxes?
You must choose one method per vehicle per year. If your actual costs exceed the IRS rate — which they often do for work trucks — actual cost tracking produces a larger deduction. Track fuel, maintenance, insurance, registration, and depreciation throughout the year. Consult a CPA before switching methods.
How do I reduce my cost per mile?
Three levers: right-size the truck (F-350 for light residential installs is unnecessary), reduce unbillable miles (tighter service area, batch supply runs), and keep maintenance current (deferred maintenance accelerates cost per mile). Tracking CPM monthly is the only way to know if you are moving the number.
How many miles does the average contractor drive per year?
Solo contractors typically drive 15,000–25,000 business miles per year. At $1.10/mile, that is $16,500–$27,500 in truck operating cost annually — often the second largest expense after labor or insurance.