Understanding Cost per Kilometer
Your fuel cost per kilometer (or per mile) is a simple but powerful metric. It tells you exactly how much you're spending on fuel for every unit of distance traveled. This makes it easy to:
- Compare the running costs of different vehicles
- Budget for regular commutes or business travel
- Calculate fair reimbursement rates
- Decide whether driving or alternative transport is more economical
Cost per km = (Fuel consumption in L/100km × Price per liter) ÷ 100
Cost per mile = Cost per km × 1.609344
Example Calculations
| Vehicle Type | Efficiency | Fuel Price | Cost/km | Cost/100km |
|---|---|---|---|---|
| Small car | 6 L/100km | $1.50/L | $0.09 | $9.00 |
| Mid-size sedan | 8 L/100km | $1.50/L | $0.12 | $12.00 |
| SUV | 11 L/100km | $1.50/L | $0.165 | $16.50 |
| Hybrid | 4.5 L/100km | $1.50/L | $0.0675 | $6.75 |
What Affects Your Cost per km?
Fuel prices: Obviously, when fuel prices rise, your cost per km increases proportionally. Track local prices to know when to fill up.
Driving style: Aggressive acceleration, high speeds, and frequent braking all increase fuel consumption. Smooth, steady driving can improve efficiency by 10-20%.
Vehicle condition: Under-inflated tires, dirty air filters, and poor maintenance reduce efficiency. Regular servicing keeps costs down.
Route type: Highway driving is typically more efficient than city driving due to consistent speeds and less stopping.
Using Cost per km for Budgeting
If you know your cost per km, budgeting becomes simple. Multiply your expected monthly distance by your cost per km to get your fuel budget. For example, if you drive 1,500 km per month and your cost is $0.10/km, budget $150 for fuel.
Monthly distance = 25 × 2 × 20 = 1,000 km
At $0.12/km = $120/month in fuel costs