GPS Tracking ROI: How to Calculate Your Savings

Investing in a GPS fleet tracking system is a significant decision. Here's how to calculate your return on investment.

The ROI Formula

ROI = [(Total Annual Savings - Annual System Cost) / Annual System Cost] × 100

Key Areas of Savings

1. Fuel Savings (10-15% reduction)

• Monitor idle time and speeding
• Optimize routes
• Typical savings: $2,000-$5,000 per vehicle annually

2. Labor Cost Reduction (15-20% savings)

• Accurate timekeeping
• Reduced overtime fraud
• Better job scheduling
• Typical savings: $3,000-$6,000 per vehicle annually

3. Maintenance Cost Reduction (10-15% savings)

• Preventive maintenance scheduling
• Reduced breakdown frequency
• Extended vehicle life
• Typical savings: $1,000-$2,500 per vehicle annually

4. Insurance Savings (5-15% reduction)

• Many insurers offer discounts for GPS-tracked fleets
• Faster accident response
• Theft recovery
• Typical savings: $200-$500 per vehicle annually

Sample Calculation

For a 20-vehicle fleet:

• Annual system cost: $4,800 ($20/vehicle/month)
• Fuel savings: $60,000
• Labor savings: $80,000
• Maintenance savings: $30,000
• Insurance savings: $6,000
• Total savings: $176,000
• ROI: 3,567%

Most fleets see ROI within 1-3 months of deployment.