Resources / Coach running cost per km
CostingCoach running cost per km
The formula: running cost per km = fuel (litres/km × diesel price) + road user charges + tyres + repairs and maintenance + (insurance ÷ annual km) + (depreciation ÷ annual km). Multiply the total by the kilometres driven, including dead legs, to get the variable cost of a trip. Driver time and overheads are added on top.
Your cost per kilometre is the foundation of every charter quote. Get it right and your pricing is defensible. Get it wrong and you are guessing. Here is each component and a worked example.
The components
- Fuel: litres per km × diesel price. A large coach using 0.40 L/km at $2.10/L costs about $0.84/km in fuel.
- Road user charges (RUC): in NZ, a per-km charge set by the vehicle's weight band. Heavier vehicles pay more.
- Tyres: the cost of a set divided by the kilometres they last.
- Repairs and maintenance: servicing, parts and wear, expressed per km.
- Insurance: the annual premium divided by the kilometres the vehicle covers in a year.
- Depreciation: the vehicle's value loss, again spread across annual kilometres.
A worked example
A 53-seat coach, roughly 60,000 km a year:
| Component | Working | Cost / km |
|---|---|---|
| Fuel | 0.40 L/km × $2.10 | $0.84 |
| RUC | weight-band rate | $0.20 |
| Tyres | set cost ÷ life | $0.05 |
| Repairs & maintenance | annual ÷ 60,000 km | $0.12 |
| Insurance | $9,000 ÷ 60,000 km | $0.15 |
| Depreciation | value loss ÷ 60,000 km | $0.20 |
| Total variable cost | ~$1.56/km |
So a 300 km return trip (600 km driven, including dead legs) carries roughly $936 of variable cost before you add the driver's day, a share of fixed costs, and your margin. The figures above are illustrative; your real numbers will differ, which is exactly why you should price from your own model rather than a rule of thumb.
Frequently asked questions
What is the cost per kilometre to run a coach?
Add the per-km cost of fuel, RUC, tyres, repairs and maintenance, insurance and depreciation. The total varies by vehicle, but a large coach often sits around one to one-and-a-half dollars per km before the driver and overheads.
How do charter operators work out fuel cost?
Fuel cost per km is litres per km multiplied by the diesel price. For a trip, multiply by the total kilometres driven, including the empty dead legs to and from your depot.
Should dead legs be included in the cost?
Yes. The empty run from your depot to the pickup and back is real fuel, wages and wear. Leaving it out is one of the most common ways charter jobs get underpriced.
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