Separate standing costs from costs of driving
Vehicle payments, insurance and some subscriptions continue even when you are not driving. Fuel, tyres, maintenance and some road charges change with the work. Set aside an allowance for repairs and downtime rather than treating a month with no repair bill as the permanent norm.
Include all business mileage in your fuel and maintenance estimate. Divide costs on a consistent basis: a cost per total mile is different from a price per loaded mile. Keep the treatment of VAT consistent and ask your accountant how it applies to your business.
A worked example: the empty miles matter
Suppose a job pays £180 and involves 100 loaded miles. You drive another 30 miles to collect and 40 miles after delivery to reach your next base or job. That is 170 miles in total, so the £180 represents about £1.06 per total mile, before fuel, vehicle costs, your time and other expenses.
Looking at loaded distance alone would make the same job appear to pay £1.80 per mile. These are arithmetic examples, not AIM rates or a statement of what a route should pay. The useful comparison depends on your actual costs, availability and what happens after delivery.
Put a value on the whole working day
Travel to collection, loading, waiting, the delivery window and the journey afterwards all occupy your time. A job with a higher headline rate may produce a poorer day if it leaves you far from suitable follow-on work or prevents another collection.
Agree how waiting time, cancellations and additional requirements will be handled before accepting. Record what happened on the job so your next quote can reflect experience rather than an optimistic guess.
Check profit and cash separately
An invoice is not money in the bank. Record when each customer is due to pay and compare that with the dates fuel, insurance and vehicle bills fall due. A working cash buffer helps the business cope with payment gaps, but it does not make an unsuitable job profitable.
Use the calculator, then review actual results
Our monthly cost calculator lets you enter working days, daily revenue, mileage, fuel economy, vehicle payments and other costs. The result is a planning illustration before your own pay and tax, not an earnings forecast. Include unentered costs and quieter days when assessing it.
For example, the £250 monthly subscription works out at £12.50 per working day over 20 working days. That is a cost allocation, not a per-job charge or a promise of work. The subscription has no monthly job-count cap; AIM may separately retain a margin on arranged transport jobs.
Bring your numbers to the discussion
Tell Stephen your vehicle, base, typical mileage and available days. AIM’s support helps you consider rates, costs and suitable work opportunities. Keep reviewing actual fuel, all miles, time, invoices and cash collected as the business develops. See our owner-driver work service for the scope and conditions.