Van Running Cost Calculator
Calculate your true cost per mile including fuel, insurance, maintenance, depreciation, road tax, and MOT. Know what your van really costs to run.
Van Details
How many miles per year do you drive?
Annual Fixed Costs
Maintenance & Depreciation
What's it worth today?
Your Costs
Total Cost Per Mile
0.5p
This is your true cost to drive 1 mile
Total Annual Cost
£9842
Cost Breakdown
💡 HMRC Mileage Comparison
✓ Claim Actual Costs
Your actual costs exceed HMRC rates. Keep all receipts and claim actual expenses to maximize your deduction. Worth the extra paperwork.
🚗 Reduce Fuel Costs
Proper tyre pressure saves 5-10% fuel. Remove roof racks and heavy tools when not needed.
🔧 Service on Time
Regular servicing prevents expensive repairs. One missed service can cost £1,000+ in damage.
📋 Track Everything
Keep all receipts for 5 years. Mileage logs are essential for claiming business use.
Why You Need to Know Your Van Running Costs
Most UK tradespeople massively underestimate how much their van costs to run. They think of fuel and insurance, but forget about depreciation, maintenance, tyres, MOT, repairs, and breakdown cover. This calculator shows you the REAL cost per mile.
🚨 The Hidden Cost Trap
A plumber thought his van cost 20p/mile (just fuel). The real cost was 68p/mile. He wasn't charging enough for travel and lost £6,000 in his first year without realizing it.
Knowing your true cost per mile lets you price jobs accurately and claim back expenses properly.
What's Included in Van Running Costs?
💰 Variable Costs (Per Mile)
- • Fuel: Biggest cost, varies with prices
- • Maintenance: Services, oil changes, filters
- • Tyres: £400-£600 every 20,000-30,000 miles
- • Repairs: Wear and tear increases with age
📅 Fixed Costs (Annual)
- • Insurance: £800-£2,500/year typical
- • Road Tax: £290-£345/year for vans
- • MOT: £54.85/year (vans 3+ years old)
- • Depreciation: 15-25% of value per year
Average Van Running Costs by Type (2025)
| Van Type | Annual Miles | Cost/Mile | Annual Cost |
|---|---|---|---|
| Small Van (e.g., Caddy) | 15,000 | £0.52 | £7,800 |
| Medium Van (e.g., Transit Custom) | 20,000 | £0.65 | £13,000 |
| Large Van (e.g., Sprinter) | 25,000 | £0.78 | £19,500 |
How to Reduce Van Running Costs
1. Fuel Efficiency Tips
- • Keep tyres properly inflated (saves 5-10% fuel)
- • Remove unnecessary weight and roof racks
- • Plan routes to avoid traffic and reduce mileage
- • Drive smoothly - harsh acceleration wastes 25% more fuel
2. Maintenance Strategy
- • Service on time - prevents expensive repairs later
- • Fix small problems immediately before they escalate
- • Use quality parts - cheap parts fail faster
- • Keep detailed service records to maximize resale value
3. Insurance Savings
- • Shop around annually - loyalty doesn't pay
- • Increase voluntary excess to lower premiums
- • Add security features (trackers, alarms) for discounts
- • Consider black box insurance if you're a safe driver
4. Depreciation Management
- • Buy 2-3 year old vans instead of brand new (avoid steepest depreciation)
- • Choose popular models that hold value better
- • Keep it clean and well-maintained for better resale
- • Sell before it hits 100,000 miles for maximum value
Claiming Van Costs as Business Expenses
You have two options for claiming van costs on your tax return:
Option 1: Simplified Mileage (45p/mile)
HMRC allows 45p per mile for first 10,000 business miles, then 25p per mile after that.
Best for: New businesses, part-time use, or if you use the van for personal trips too
✓ Simple - just track business miles
Option 2: Actual Costs
Claim fuel, insurance, tax, maintenance, repairs, depreciation based on business use %.
Best for: High mileage, 100% business use, or when your costs exceed 45p/mile
✓ Often claims more - worth the paperwork
💡 Pro Tip: Calculate Both Methods
Use this calculator to work out your actual cost per mile. If it's higher than 45p, you should claim actual costs. If it's lower, simplified mileage gives you a better deal.
How to Track Van Expenses Properly
Essential Records to Keep:
- • Mileage log: Start/end odometer readings, date, purpose of trip
- • Fuel receipts: Every fill-up, even small ones
- • Service invoices: All maintenance and repair bills
- • Insurance documents: Annual policy and renewal notices
- • Finance/lease agreements: If applicable
- • Purchase invoice: Original van purchase receipt
Keep all records for at least 5 years. HMRC can audit up to 6 years back if they suspect errors.
When to Replace Your Van
Knowing when to replace your van is a balance between repair costs and depreciation:
Keep Running It
- • Under 100k miles
- • Repair costs < £1,500/year
- • No major breakdowns
- • Passes MOT first time
Start Planning
- • 100k-150k miles
- • Repair costs £1,500-£3,000/year
- • Occasional breakdowns
- • MOT advisories piling up
Replace Now
- • Over 150k miles
- • Repair costs > £3,000/year
- • Frequent breakdowns
- • Major repairs needed (engine, gearbox)
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Helpful Resources
Make Van Costs Visible, Not a Guess
Use this calculator to see what each van really costs you per month and per mile, then bake those numbers into your pricing and planning.
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