Your food truck depreciation belongs in your daily cost price, but many entrepreneurs forget this crucial expense. This makes your margins look better than they actually are, setting you up for financial trouble down the road.
Why include depreciation in cost price?
Your food truck loses value every single day you operate it. That value loss represents a real cost, just like your ingredients and labor. Skip this calculation and you'll never know what you're truly earning.
Most food truck entrepreneurs convince themselves:
- "I've already paid for my truck"
- "Depreciation is for the accountant"
- "I only calculate with ingredients"
But you're missing a critical piece of your cost structure. And here's what happens - the kind of thing you only learn after closing your first month at a loss - you'll find yourself with a worn-out truck and zero funds for replacement or major repairs.
⚠️ Note:
Depreciation isn't a "paper cost". It's actual money you must set aside for replacement or major repairs.
Calculate your daily depreciation
The math is straightforward:
Daily depreciation = (Purchase price - Residual value) / Number of working days
? Example:
Your food truck cost €45,000. After 8 years the residual value is €5,000.
- Amount to depreciate: €45,000 - €5,000 = €40,000
- Working days annually: 250 (5 days/week × 50 weeks)
- Depreciation period: 8 years = 2,000 working days
Daily depreciation: €40,000 / 2,000 = €20 per day
Include depreciation in your cost price
Now divide your daily depreciation across your expected revenue:
Depreciation per euro of revenue = Daily depreciation / Daily revenue
? Example calculation:
With €20 depreciation per day and €400 average daily revenue:
- Depreciation percentage: €20 / €400 = 5%
- For a burger at €12: €12 × 5% = €0.60 depreciation
- Total cost price: ingredients + labor + depreciation
If your ingredients cost €4.20, your actual cost price becomes €4.80 instead of €4.20.
Include other fixed costs
Depreciation's just one piece. You've got other daily fixed costs too:
- Insurance: Usually €8-15 per day
- MOT and maintenance: Average €5-10 per day
- Pitch fees: €10-50 per day (location dependent)
- Gas/fuel: €15-30 per day
? Total example:
All fixed costs per day at €400 revenue:
- Depreciation: €20
- Insurance: €12
- Maintenance: €8
- Pitch: €25
- Fuel: €20
Total: €85 per day = 21% of revenue
Practical application
Convert your fixed costs to a revenue percentage. Then you can easily calculate it per dish:
- Burger €12 → fixed costs €2.52 (21%)
- Fries €4 → fixed costs €0.84 (21%)
- Drink €3 → fixed costs €0.63 (21%)
Now you'll know exactly what each product contributes to covering your fixed costs.
⚠️ Note:
On slow days (low revenue) your fixed costs per product climb higher. Account for seasonal fluctuations and weather impacts.
Digital help with cost price calculation
Manual calculations eat up valuable time. Tools like KitchenNmbrs help you:
- Automatically distribute fixed costs across your menu
- Track cost price per dish
- Monitor margins in real-time
This keeps you on top of your numbers, even during the lunch rush chaos.
Related articles
How do you calculate depreciation in cost price? (step by step)
Calculate your daily depreciation
Subtract residual value from purchase price. Divide by number of working days in the depreciation period. For a truck costing €45,000 with residual value €5,000 over 8 years: (€45,000 - €5,000) / 2,000 working days = €20 per day.
Add up all fixed costs
Collect insurance, maintenance, pitch fees and fuel per day. For example: €12 insurance + €8 maintenance + €25 pitch + €20 fuel + €20 depreciation = €85 per day total.
Calculate percentage of revenue
Divide your daily fixed costs by your average daily revenue. At €85 fixed costs and €400 revenue: €85 / €400 = 21%. Add this percentage to your ingredient and labor costs for your total cost price.
✨ Pro tip
Set aside your calculated €20 daily depreciation in a separate savings account within 48 hours of each operating day. You'll automatically build a replacement fund without scrambling for major repair money later.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I need to include depreciation if my truck is already paid off?
How do I determine the residual value of my food truck?
What if my revenue varies greatly from day to day?
Can I calculate depreciation per individual dish instead?
How often should I update my depreciation calculation?
Should I use straight-line or accelerated depreciation for my food truck?
Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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