How to calculate the profit of each tipper and lorry
Vehicle profit = what the vehicle earned (rent, hire charges or the margin on material it carried) − what it cost to run (diesel, driver BATA and salary, repairs, tyres, insurance, tax and permits, and loan interest).
Income of a vehicle
- Rent or hire charges for trips done for customers.
- The margin on material it carried and sold (sale price − purchase price − royalty / pass).
- Hire income from attached (hired-in) vehicles, net of what you pay their owners.
Costs of a vehicle
- Diesel, with litres and odometer readings to track mileage.
- Driver BATA, salary and trip expenses.
- Repairs, servicing and spare parts.
- Tyres: purchase, retreading and repairs.
- Insurance, road tax, permits, fitness and pollution certificates.
- Loan interest on the vehicle's EMI.
Worked example (illustrative figures)
One tipper in a month that ran 6,000 km:
| Item | Amount (₹) |
|---|---|
| Income: trip rent | 2,40,000 |
| Diesel | 95,000 |
| Driver BATA and salary | 35,000 |
| Repairs and service | 18,000 |
| Tyres | 12,000 |
| Insurance, tax and permits (monthly share) | 9,000 |
| EMI interest | 14,000 |
| Total cost | 1,83,000 |
| Profit | 57,000 |
Per-km figures
Cost per km = ₹1,83,000 ÷ 6,000 km = ₹30.50. Profit per km = ₹57,000 ÷ 6,000 km = ₹9.50.
Compare these across vehicles and months. A vehicle whose cost per km keeps rising — usually diesel mileage or repairs — needs attention before it becomes a loss.
Should the EMI count as an expense?
In the accounts, only the interest part of an EMI is an expense; the principal part repays the loan and reduces what you owe. Many owners still want to see the full EMI against the vehicle, to know whether it pays for itself in cash. Look at both views, but keep the books on the interest-only basis.
How RockPro handles it
In RockPro Vehicles, trips, diesel, driver expenses, repairs, tyres and EMIs are tagged to the vehicle — from the office or the drivers' Android app — and the vehicle P&L shows income, expense and net for any period, with what came before it. A setting lets you count the full EMI as vehicle expense in the vehicle reports while the accounts stay correct.
Frequently asked questions
How do I calculate the profit of a lorry?
Add up everything the lorry earned in the period (rent, hire or margin on material) and subtract its running costs: diesel, driver costs, repairs, tyres, insurance, tax, permits and loan interest.
Should EMI be counted as vehicle expense?
In the books only the interest is an expense; the principal repays the loan. For a cash view you can also look at profit after the full EMI.
See Lorry and tipper fleet management with vehicle-wise profit, or start a 14-day free trial.