The formula
Daily downtime cost = (Daily revenue) + (Daily fixed cost) + (Driver wages if paid) + (Repair + towing + emergency parts markup). Most fleets underestimate by 40% because they ignore fixed cost accrual and driver pay.
- •Revenue lost: daily miles × revenue per mile
- •Fixed cost: insurance, payments, permits ÷ 365
- •Driver: hourly or daily pay if not laid off
- •Repair premium: emergency parts are 20–40% more