"Delivery charges ₹60" is either a bargain for the customer or a slow leak for you — and most delivery businesses never check which. Fuel is the largest variable cost of every trip, but tolls, parking, a driver's time and wear add up too. This calculator turns a trip (or a day's route) into a cost per trip and per kilometre from distance, mileage and today's fuel price, adds other costs, applies your markup, and shows what to charge — for two-wheeler deliveries, tempo runs, field service visits and client travel that you bill back.
The arithmetic
Fuel cost = Distance ÷ Mileage × Fuel price. A 38 km round trip on a scooter doing 45 km/l at ₹96 a litre costs ₹81 in petrol. Add ₹0 tolls and a ₹20 share of the day's parking → ₹101 direct cost. At a 20% markup, bill ₹121; per km, about ₹3.20. A Tata Ace doing 12 km/l on diesel at ₹89 costs ₹7.40 per km in fuel alone before the driver.
Markup covers what the trip-level numbers miss: the driver's salary, insurance, servicing, tyres and the vehicle's depreciation. A realistic full cost for a two-wheeler is ₹5–7 per km; for a small commercial vehicle ₹15–25 per km.
How to use the calculator
- Enter the round-trip distance (or pick it from Maps) and the vehicle's real mileage — from your own fill-to-fill record, not the brochure.
- Choose fuel type (petrol, diesel, CNG per kg) and today's price.
- Add tolls, parking, driver payment and any per-trip item.
- Set the customer markup, or switch to "cost only" for internal costing.
- Read cost, price to bill and per-km figures; use the route mode to total a day of stops.
Delivery pricing that works
- Zone pricing: free within 2 km, ₹40 for 2–5 km, ₹80 beyond — simpler than per-km and easier to print on the digital menu.
- Minimum order for free delivery set from your contribution margin — the delivery cost must fit inside it.
- Batch deliveries — three drops on one 12 km loop cost a third each of what three separate trips do.
- Marketplace comparison: a ₹90 platform delivery fee versus your own ₹45 real cost is one reason direct orders on a WhatsApp link win. The trade-offs are in Quick commerce vs the kirana.
Billing travel to clients
Service businesses (repair, installation, consulting) bill travel as a line on the service quote or GST invoice. Travel billed as part of the service takes the service's GST rate — it is not a separate exempt "reimbursement" unless you act as a pure agent with actual bills. Keep a trip log with date, client, distance and purpose; it supports both the invoice and the vehicle expense claim in your books.
Tax and records
- Fuel, maintenance and insurance for vehicles used in business are deductible; personal use must be excluded.
- Depreciation on delivery vehicles is 15% (30% if run on hire) under income tax — see the depreciation calculator.
- GST on fuel is not creditable (fuel is outside GST); ITC on vehicle purchase is blocked for most businesses except transport and goods vehicles.
- Cash fuel payments above ₹10,000 a day per pump are disallowed under Section 40A(3); pay by card or UPI.
Related tools
- Contribution margin calculator — does the order cover delivery?
- Volumetric weight calculator — courier alternative for parcels.
- Service quote builder — travel as a quote line.
- On-time delivery rate — track the service side of deliveries.
- Depreciation calculator — the vehicle's tax treatment.