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The True Cost Per Mile of a Service Van (and Why It's Higher Than You Think)

2026-11-06

Most owners think of drive cost as fuel. But every mile a tech drives carries three costs: the vehicle, the paid labor, and the billable job you couldn't fit in.

1. Vehicle cost

Fuel, tires, maintenance, insurance and depreciation. The IRS standard mileage rate (about $0.67/mile) is a reasonable floor for a service van; heavily loaded trucks often run higher.

2. Labor cost

A tech paid $25–35/hr plus burden costs you $40–55/hr loaded. At 30 mph average city speed, that's $1.30–1.80 per mile in labor alone.

3. Opportunity cost

Every hour behind the windshield is an hour not billed. If your average billable hour is worth $150, a 40-minute cross-town drive just cost you $100 of revenue you'll never see.

What to do

Set a target travel radius (15 minutes works for most metros), cluster maintenance by zip code, and charge a trip fee in zones that average more than 30 minutes away. Contractor Profit Audit's free audit calculates this from your own job export.

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