Cost per kilometre (CPK) is a vehicle’s (or a fleet’s) total running cost divided by the kilometres driven over a given period. It expresses in a single number what it costs to move a vehicle per kilometre, and it’s one of the most-used KPIs for measuring fleet efficiency.
What it includes
To be accurate, CPK must include every cost line, not just fuel: fuel, maintenance, tyres, insurance, road tax and a share of depreciation. It’s essentially the TCO expressed on a per-kilometre basis.
Why it matters for fleets
CPK lets you compare vehicles, drivers and routes on a like-for-like basis and spot inefficiencies (abnormal fuel use, excessive idle time, unoptimised routes). The most common mistake is calculating it on fuel alone: the guide cost per kilometre, the calculation 70% get wrong explains how to do it right.
FAQ
What do you need to calculate cost per kilometre?
The total running costs for the period and the kilometres driven. Telematics provides real mileage and fuel use, avoiding rough estimates.
Why does my cost per km look too low?
Often because only fuel is counted. Including maintenance, insurance and depreciation (i.e. the TCO), the real figure is higher.