I'll admit something that might surprise you: most food truck owners I know are secretly bleeding money without realizing it. They're forgetting to account for truck depreciation in their dish pricing. You're essentially giving away free food if you don't factor this fixed cost into every portion you serve.
What is depreciation and why do you need to factor it in?
Depreciation represents your food truck losing value each year. Sure, you don't pay monthly rent like brick-and-mortar restaurants, but your truck's worth drops annually. Skip factoring these costs into your dishes? You won't know if you're actually profitable.
💡 Example:
Your food truck cost €45,000. You depreciate it over 5 years:
- Depreciation per year: €45,000 / 5 = €9,000
- Depreciation per month: €9,000 / 12 = €750
- At 200 portions sold per month: €750 / 200 = €3.75 per portion
Each dish needs to contribute €3.75 toward truck costs.
Calculate your depreciation per portion
The formula's straightforward, but realistic figures make all the difference:
Depreciation per portion = (Truck purchase price / Depreciation years) / Number of portions per year
- Purchase price: what you paid (including setup)
- Depreciation years: typically 5-8 years for food trucks
- Portions per year: estimate realistically based on seasons
⚠️ Note:
Don't just count the truck itself. Include your fryer, grill, refrigeration - everything you bought to operate.
Factor in other fixed costs
Depreciation's just one piece. You've got other fixed costs that need spreading across each portion:
- Insurance: typically €1,500-3,000 annually
- MOT and maintenance: €800-1,500 per year
- Location permits: varies by municipality
- Fuel: calculate average per working day
💡 Example total fixed costs:
All fixed costs per year:
- Truck depreciation: €9,000
- Insurance: €2,400
- Maintenance: €1,200
- Permits: €800
- Fuel: €3,600
Total: €17,000 per year = €8.50 per portion (at 2,000 portions)
Seasons and realistic numbers
Food trucks rarely operate year-round at full capacity. Base your calculations on actual working days, not a theoretical 365.
- Summer (April-September): 6 months, 5 days weekly = 130 days
- Winter (October-March): 6 months, 3 days weekly = 78 days
- Total working days: 208 days annually
At 15 portions daily on average = 208 × 15 = 3,120 portions yearly. From analyzing actual purchasing data across different restaurant types, seasonal operations dramatically affect per-portion fixed costs compared to overestimated volumes.
Integrate into your cost calculation
Your complete cost per dish includes:
- Ingredients: meat, vegetables, sauces, packaging
- Fixed costs per portion: depreciation + insurance + maintenance
- Labor per portion: your salary factored in
💡 Example burger cost:
- Ingredients: €3.20
- Fixed costs: €5.45
- Labor: €4.00
Total cost: €12.65. Selling price minimum €18.00 for 30% margin.
Food cost calculators can automate these calculations and track them per dish, so you'll always know if each sale generates enough profit.
How do you calculate depreciation per portion? (step by step)
Determine your total investment
Add up what you paid for the truck, setup, equipment and initial inventory. This is your depreciation base. Don't forget VAT you couldn't reclaim.
Choose your depreciation period
Food trucks are usually depreciated over 5-8 years. With intensive use, choose 5 years; with weekend-only use, you can take 8 years. Be realistic about the lifespan.
Estimate your annual production
Count your working days per year and average portions per day. Factor in seasons - winter is often quieter. This estimate determines your cost per portion.
Calculate cost per portion
Divide your annual depreciation by your number of portions per year. Add other fixed costs here (insurance, maintenance, permits) for your total fixed cost per portion.
✨ Pro tip
Recalculate your portion estimates every 6 months based on actual sales data. If you're consistently hitting 20+ portions daily instead of your projected 15, your fixed costs per portion drop by 25%, giving you room to either boost margins or price more competitively.
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
Can I deduct food truck depreciation for tax purposes?
Yes, depreciation counts as a deductible business expense. Check with your accountant about the optimal depreciation method and timeframe for your specific situation.
What if I rent my truck instead of buying it?
With rentals, you factor monthly rental costs into your portions instead. Use this formula: (monthly rent × 12) / number of portions per year = rental cost per portion.
Do I need to include residual value in my calculation?
Absolutely. If your truck's worth €10,000 after 5 years, you depreciate €35,000, not the full €45,000. Residual value reduces your annual depreciation significantly.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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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