Van Cost Calculator
Understand the annual, daily, per-mile and per-billable-hour cost of a work van.
Who it is for: UK self-employed tradespeople and small trade contractors.
What you get: Annual, monthly, daily, per-mile and per-hour recovery figures.
How this calculation works
This tool runs in your browser. No data is sent to our servers. Below are the assumptions used.
- Fuel is calculated from mpg using 4.54609 litres per imperial gallon.
- If the van is owned outright, enter an annual depreciation figure so replacement is funded.
Hypothetical worked examples
To help you understand the outputs, here are illustrative examples generated using the same logic.
Illustrative example 1: A sole trader working 30 billable hours per week with £18,000 in annual overheads needs to recover £11.54 per hour before any profit is added. If they want a £35,000 target owner pay before personal tax, the true hourly rate rises to around £28–£32 based on the inputs entered.
Illustrative example 2: A small team with a van, premises and two employees requires a higher day rate to cover shared operational costs. The calculator shows the break-even point clearly so the business owner can set a rate that covers all costs before profit is considered.
Questions people ask
- What costs should I include in my van running costs?
- Finance payments or annual depreciation, insurance, Vehicle Excise Duty (road tax), servicing and MOT, tyres, breakdown cover, fuel and any fitted-out racking or signage that depreciates. Do not forget the cost of your time if you do your own servicing — that is still a cost, even if it is not a cash payment.
- How do I account for depreciation if I own the van outright?
- Estimate the van's current value and how many years of useful working life remain. Divide the current value by the remaining years to get an annual depreciation figure. Enter this in place of finance payments. If you do not account for depreciation, you will have no money set aside when the van needs replacing.
- Should I recover van costs per mile or per hour?
- Both are useful. Per-mile recovery is helpful when quoting travel costs on individual jobs. Per-billable-hour recovery is useful when building your true hourly rate, because it shows the van overhead that must be covered regardless of how far you drive. The calculator produces both figures.
- My van is also used for personal journeys. How should I handle that?
- You should only recover business-use costs through your pricing. If the van is used 80% for work and 20% personally, apply 80% of the total annual cost to your business recovery figure. HMRC also requires you to keep records of business and personal mileage if the van is used for both.
- How often should I recalculate my van costs?
- At least annually, and whenever a significant cost changes — new finance deal, insurance renewal, a change in fuel prices or a new tyre set. Van costs are one of the most commonly underestimated overheads in a trade business, particularly when fuel prices move significantly.
Where this fits
Paperwork that goes with it
A year of vehicle costs in one place, converted into the number that matters: recovery per billable hour.
Van Cost Workbook