Equipment

Additional Truck Break-Even

Find the revenue an additional truck needs to generate to justify adding it to your fleet, using your real billable rate and margin.

Net annual value$28,800
Break-even revenue needed$40,000

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Methodology

Formula: Incremental revenue capacity = hours × required billable rate. Net annual value = (incremental revenue × margin %) - truck annual cost. Break-even revenue = truck annual cost / margin %.

Assumption: Distinct from Spare Vehicle Break-Even: this is genuine fleet expansion, new billable capacity, not backup for an existing truck.

Limitation: A negative net annual value means the truck does not pay for itself at the entered utilization.