Core rule: use the same duty cycle, ownership period, currency, tax treatment, financing basis and annual work for every vehicle. A TCO model is useful only when its assumptions are visible and replaceable.
Define the comparison first
Choose the exact task: cargo or trailer, payload, loaded and empty distance, grade, speed, shifts, operating days and depot return pattern. Set analysis years and annual kilometres. Compare vehicles able to complete the same work. A cheaper chassis is not a valid alternative if it cannot carry the body, payload or combination mass. The companion guide on duty cycle, range and total cost explains how route conditions shape the initial vehicle choice.
Separate one-time investment, recurring cost and end value. State whether inputs include tax, duty, finance and inflation. Convert quotations to one currency and date. Do not compare a cash purchase with financed payments without calculating financing cost.
Use a complete TCO formula
Productive kilometres must reflect availability. If charging, maintenance or route mismatch prevents dispatch, include the lost work. Fleets managed by tonnes, pallets or trips should also calculate cost per tonne-kilometre, pallet or completed cycle.
Calculate energy from the route
Use measured consumption for loaded, partial and empty legs. Multiply each distance by its kWh per kilometre, then add cab climate control, refrigeration, tipping, mixing or other auxiliaries. Include charging losses using metered grid energy when available. Battery capacity is not consumption and cannot alone determine range or cost.
Model peak and off-peak energy separately. If demand charges apply, estimate coincident charger demand under the dispatch plan. Test low, base and high cases for consumption, tariff and annual work. For operational detail, see the charging planning guide.
Allocate charging assets fairly
Include chargers, transformer or grid upgrade, switchgear, cabling, civil works, permits, software, commissioning and maintenance. Do not charge the whole depot to the first truck when it is designed for a larger fleet. Show initial cash flow and allocate shared assets across expected vehicles and service years.
Model redundancy. A low-cost installation with no spare connector can create expensive downtime. Include service fees, inspections and the operational space required for charging bays.
Maintenance, tyres and battery assumptions
Use written schedules and local parts and labour rates. Separate planned maintenance from repair contingency. Include tyres for the actual axle layout, load and surface. Do not assume a universal maintenance saving: body equipment, brakes, cooling and high-voltage components still require service.
Do not invent battery replacement timing, degradation or residual value. Use final warranty and operating documents. Where future values are uncertain, show scenarios rather than hiding uncertainty in one estimate.
Utilization can dominate the result
Higher productive use spreads vehicle and infrastructure cost over more work, but reduces charging time and raises the value of reliable dispatch. Model charger queues, loading, driver shifts and maintenance. Check whether one vehicle can cover two shifts or charging requires additional fleet capacity.
Build low, base and high operating cases
A single answer can hide the assumptions that carry the most risk. Build at least three cases with the same calculation structure. The low case can use conservative annual kilometres, higher route energy, a less favourable tariff and more downtime. The base case should use the fleet's best current operating evidence. The high case can test stronger utilization and efficient charging, but it should remain achievable rather than promotional.
Change one important variable at a time to identify sensitivity. Annual distance shows how fixed vehicle and charger costs are distributed. Energy consumption and electricity tariff show exposure to route and utility conditions. Availability shows whether a cheaper configuration creates lost work. Residual value should be presented as a range unless a documented purchase or resale commitment exists. This process helps the buyer see which inputs require measurement, contract protection or operational improvement before an order.
Compare cash flow as well as lifetime total
Two projects can have a similar lifetime cost but very different funding requirements. Create a year-by-year view showing deposit, vehicle payment, import cost, charger and grid investment, finance payments, energy, maintenance and any documented incentive. Keep refundable taxes separate from true cost and record when each payment occurs. A discounted-cash-flow model may be useful when the buyer has an approved discount rate, but the undiscounted totals should remain visible.
Do not hide shared infrastructure inside the vehicle price. Record the asset owner, expected service life, number of vehicles supported and expansion capacity. If a transformer or civil project supports future trucks, allocate costs transparently and show the initial cash requirement separately. Also record costs outside the truck itself, including driver training, high-voltage safety equipment, depot markings, software subscriptions and commissioning support.
Use decision gates before approving the business case
The calculation should lead to operational checks, not only a spreadsheet result. First confirm that the completed vehicle can legally and physically carry the required payload. Then confirm route energy with reserve, charging compatibility, site power, charging-window capacity and backup procedures. Verify service access, parts planning and the exact warranty documents. Finally, run a pilot or controlled route validation where possible and replace estimates with measured grid energy, trip energy and turnaround time.
Keep a version number and owner for every major assumption. When the route, tariff, quantity, body, battery or charger changes, update the model and record the reason. This creates an auditable procurement decision and prevents an attractive early estimate from being reused after the project specification has changed.
Set an approval threshold for each gate. For example, route validation should cover representative payload and road conditions; charging validation should demonstrate the required energy can be replaced within the real parking window; and service readiness should identify trained personnel, diagnostic access and critical parts. If a gate remains open, show it as a risk with an owner and due date instead of treating it as a confirmed saving.
Report results in buyer-friendly units
Present the total, annual cost and unit cost together. Cost per kilometre is useful for route work, but cost per completed trip, tonne-kilometre, pallet or operating hour may be more meaningful for the business. Show energy and infrastructure separately so the buyer can see whether a change comes from the truck, the route or the depot. Include the assumptions directly beside the result and avoid percentages that do not show their comparison baseline.
Worksheet inputs
- Delivered vehicle and body price, taxes, duty and finance.
- Analysis years, annual work and utilization.
- Loaded, partial and empty consumption.
- Tariffs, demand charges and charging losses.
- Charger, grid, civil, software and service costs.
- Maintenance, tyres, insurance and registration.
- Downtime and backup-vehicle assumptions.
- Verified incentives, warranty and residual scenarios.
Frequently asked questions
Should purchase price decide?
No. Energy, utilization, infrastructure, maintenance, finance and residual value can change lifecycle cost.
Can a range claim be used?
Use route-specific consumption. Payload, speed, grade, temperature and auxiliaries affect energy.
How are shared chargers treated?
Show initial cash investment and allocate the asset over its expected fleet and service period.