How Much Does Fleet Management Cost? A 2025 Guide

Fleet management costs can vary widely – but no matter the volume, all fleet managers need to fully catalog their expenses to understand how to keep them low.

In this guide, we offer an in-depth analysis of all fleet management costs you can expect. From fixed costs like leasing, insurance, and depreciation to variable costs such as fuel, maintenance, and driver wages, accounting for each can help you work out your fleet’s Total Cost of Ownership (TCO).

Top fleet management software can help organize and measure these costs accurately, and over time it can help you spot areas for savings. We dive into how these fleet software, for a fee typically between $25 and $45 per vehicle, per month, can aid financial efficiency, too. But first, let’s assess what factors are at play for fleet management at large.

How to Calculate Total Cost of Ownership for Fleets

The full spectrum of expenses involved in managing and operating a fleet is often referred to as the Total Cost of Ownership (TCO), and this is what you’ll need to calculate first. This entails determining what your fixed and variable costs are.

Fixed vs variable costs

Fixed costs are generally basic expenses, the price of which doesn’t change much over time, while variable costs (also called operating costs) are more unpredictable, and change depending on the economic climate and your business operations.

Fixed costs include:

• Purchasing and/or leasing vehicles
• Telematics and vehicle tracking devices
• Insurance premiums
• Taxes
• Depreciation
• Licensing and registration
• Loan repayments

Variable or operating costs include:

• Fuel and EV charging
• Vehicle maintenance software and repairs
• Driver wages (dependent on hours/mileage)
• Parking, overnight allowances, and fines
• Telematics subscription fees

To keep costs down, our advice is to look at your variable costs. Fixed costs are consistent and unavoidable overheads, while variable costs fluctuate directly with usage and other factors. Analyzing the combination of fixed and variable costs can help you better project and influence your overall fleet TCO.

Cost per mile is another useful metric within TCO. This number is achieved by adding your fixed and variable costs together and then dividing the total sum by the miles driven. Determining your fleet’s cost per mile offers you a greater perspective with which to simplify your budgeting, identify inefficiencies, and support investment decisions.

Use our fleet cost analysis guide to figure out exactly how much your fixed and variable costs are going to set you back.

How Fleet Management Software Can Help Reduce Costs

Top fleet management software can offer a powerful suite of tools that can drive significant cost savings across your operations.

By providing real-time data and advanced analytics, this technology can allow fleet operators to optimize every aspect of their business, from route planning to maintenance scheduling. Here are some key ways that fleet management software helps reduce costs:

• Fuel savings: Optimizes routes and minimizes idling time to reduce fuel consumption—studies have shown potential savings of 13% to 20% on fuel expenses.
• Maintenance optimization: Monitors vehicle diagnostics and engine hours to schedule preventive maintenance, reducing the likelihood of expensive repairs and prolonging vehicle lifespan.
• Improved driver behavior: Tracks driver performance to identify harsh braking, speeding, and idling, enabling coaching that leads to safer driving habits, fewer accidents, and lower repair costs.
• Optimal operational efficiency: Streamlines scheduling and dispatch, reduces downtime, and improves overall asset utilization—ensuring vehicles are used more effectively and costs per mile are minimized.
• Regulatory compliance: Assists with adherence to regulations (like electronic logging devices and Hours of Service tracking), helping avoid costly fines and penalties.
• Insurance benefits: By mitigating risks through better monitoring and safer driving practices, companies can sometimes secure lower insurance premiums.

Overall, while the cost of fleet management software is typically a fixed expense (as we’ll discuss shortly), the return on investment can be significant, with reductions in variable costs such as fuel, maintenance, and driver-related expenses. Integrating this technology not only improves operational efficiency but also strengthens your bottom line over the long term.

How to Calculate Your Fleet Management Software Costs

Since many of the variable costs are constantly fluctuating, such as fuel and driving hours, fleet management software is a huge benefit when calculating an accurate TCO in real time.

But, since nothing in life is free, this also comes at an extra cost. To calculate your fleet management software costs, first consider these key factors:

• The size of your fleet – subscription costs are generally charged per vehicle, per month
• What’s included in your package – some providers charge more for GPS integration, compliance features, asset trackers, and so on
• Installation – this can be included for free, offered as a paid add-on, and sometimes you’ll need to self-install
• Contract length – you’ll pay more month-to-month than you would on a longer contract

All of these costs will vary depending on the goals of your business and the vendor you choose. Luckily, many providers are flexible about the features they’ll include or leave out. This means one provider may offer you a better rate if you aren’t happy with the first price suggested.

Remember to look carefully at the specific features of each provider. This is the only way you’ll get full transparency about costs. If you’d like to learn more about the ins and outs of the software, we can organize a sales call for you with a range of fleet management providers.

What features impact fleet management software costs?

Fleet management software is an umbrella term that refers to a variety of tools that can help you monitor your vehicles, equipment, drivers and cargo. The greater the suite of tools included in a fleet management software package is, the more expensive it will typically be.

This type of software will often be advertised as a GPS tracking system, but the software and hardware kit you’ll be paying for will usually be more than just tracking features. Fleet management software packages can include the following:

• GPS tracking device – this is the primary purpose of the software and is a tool that sends live updates about a vehicle’s location, speed, and status
• Electronic Logging Device (ELD) – included in the package or as an add-on, this tool records drivers’ hours of service for compliance
• Dash cams – typically an add-on, but can be purchased from the same provider, this monitors road and driver activity, including collisions
• Asset tracker – included in the package or as an add-on, this tool tracks pricey equipment like diggers or trailers
• Behavior monitoring system – included in almost all GPS tracking systems, it records harsh braking, speeding, idling, etc.
• Vehicle diagnostics – included in some packages, this tool keeps an eye on the wear and tear of the automobile
• Temperature sensors –  included in some packages, they detect and adjust the heat levels within the cab, engine or both
• Messaging system – included in some packages, provides instant communication between drivers and fleet managers

Information is collected from the above tools and fed into an easy-to-read dashboard that you can monitor from your computer. This is your central fleet management software, the program that underpins everything.

Average fleet management software costs

On average, businesses can expect to pay between $25 to $45 per vehicle, per month for a standard fleet management system. At this price, you can expect the following features:

• An ELD (to record hours of service)
• Digital DVIR (Driver Vehicle Inspection Reports)
• A physical GPS tracking device
• Driver behavior monitoring
• Messaging system

Some providers offer deals for as low as $14 per vehicle, per month. That being said, you may miss out on some of the more sophisticated features like real-time tracking, advanced analytics, vehicle diagnostics, geofencing, and more complete customer support options.

However, heavy-duty vehicles usually require advanced tracking and diagnostics, and the cost can increase to as much as $499 per vehicle, per month.

See below for a breakdown of fleet management costs from some of the top vehicle tracking providers on the market.

Basic vs advanced fleet management systems

The difference between basic and advanced fleet management tools isn’t always obvious. As such, it’s worth breaking it down in general so that you can have an idea of the differences (ultimately, this will vary by provider and the specific plan you choose).

• Basic systems: Track routes with simple features like trip logging and basic alerts. Often rely on manual data transfers, offering limited real-time insights. RAM Tracking is a little more comprehensive than basic in our view, but on the scale of providers listed in the table above it could be considered the most basic (and low-cost) option.
• Advanced systems: Provide frequent, automatic data refresh for real-time tracking. Include detailed fuel consumption analytics, driver behavior monitoring, vehicle diagnostics, and advanced route planning. Though more expensive, they tend to deliver a higher ROI by improving fuel efficiency (a key cost driver, often around 25% of total spending) and improving overall fleet efficiency. An example of two leading advanced systems are Verizon Connect and Samsara.

Fleet management software hidden costs to be aware of

It is worth noting that your monthly fee and hardware costs may not be the only charges you’ll receive when using a fleet management software system.

That’s right, we’re talking about the two most unglamorous words in business budgeting: additional costs. Sometimes these are optional, so it’s worth negotiating if you feel any of these are too high or simply unnecessary.

There are two main types of additional fleet and truck GPS tracking system costs:

1. Extra hardware & add-ons: Optional upgrades like ELDs, dash cams, geofencing, asset trackers, temperature monitors, driver ID kits, and staff training can increase costs.
2. Service fees: Additional charges may include installation, integration with other software, network or data fees, technical support, customization, and termination fees.

How to Switch Providers and Save Money on Fleet Management Costs

It’s tricky to pinpoint your contract renewal window – you need to read your contract carefully to find out when you’re able to exit. Once you’ve identified the sweet spot, it’s time to start looking for a new deal. This is your chance to reduce your fleet management software costs as much as possible.

Check out our top tips:

1. Compare quotes from different providers

Research multiple options to ensure you’re getting the best deal. Use our free quote-finding form or similar tool to quickly compare Expert Market-approved fleet-tracking suppliers with no obligation to buy.

2. Watch for auto-renewal contracts

Many contracts auto-renew (often two to three months before expiration), so know your cancellation deadline. Set a calendar reminder to review current deals and avoid early termination fees.

3. Check for free trial periods

Look for providers that offer free trials or money-back guarantees (e.g., Verizon Connect’s 30-day cancellation window). Note that some companies, like Azuga, require a minimum fleet size for trials, while others, such as Quartix, offer a free online demo.

4. Cancel parts of your contract

Some subscriptions allow you to cancel specific add-on services without ending the entire contract. Review your contract’s terms and contact your account manager to reduce or eliminate unwanted services.

5. Choose a scalable system

Ensure your system can grow with your business. Evaluate the process and cost for adding more vehicles—if scalability is expensive or cumbersome, consider alternative providers. This is particularly relevant for agile business models that have to adapt quickly. Courier software is a great example.

By following these steps, you can negotiate better terms, avoid unnecessary fees, and switch to a provider that better suits your growing fleet’s needs.