Monthly Mileage Charge calculations
Purpose
1. Calendar Month (One month = 1st to last day of the calendar month e.g. 1st May to 31st May)
If you prefer to record the mileage readings on the last day(or last week) of the month for each booking, you can use this cycle type.
Note that the readings do not necessarily have to be on the exact last day of the month, or the booking doesn't have to start on the first day of the month; they can be recorded on any day and the mileage charges are still calculated correctly.
2. Anniversary month (One month = 1 month from the pickup date e.g. 15th May to 15th June)
Calculations for Calendar Month type:
Booking Pickup date: 7th May
Booking Dropoff date: 19th October
Kms option: 3100 Kms per month, $1 per extra Km (If you use a Kms option where daily Kms are specified, the calculations are slightly different, which is explained later in this article)
Max Charge: $500 per month
Charge Interval: 7th May - 31st May
Number of days in this interval = 25 (the number of days are inclusive of the first and last day)
Kms travelled: 3000
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*25 = 2500
Note: If Daily Kms option is used e.g. 100Kms per Day, the monthly allowance is calculated using 'Daily Kms allowance*Chargeable Days', then the actual Kms allowance used for the calculations is determined using the above formula.
Extra Kms = Kms travelled - Kms allowance
= 3000 - 2500 = 500
Extra Kms charge = Extra Kms * Charge per extra Km
= 500 * $1 = $500
Max charge for the interval = (Monthly max charge/Number of days in a month) * Number of days in an interval
= 500/31 * 25 = 403.22
Actual Extra Kms Charge = 403.22
Reading 2 taken on date: 30th June
Charge Interval: 1st June - 30th June (Note that for Monthly type, the interval starts from the previous charge date + 1)
Number of days in this interval = 30
Kms travelled: 2900
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/30)*30 = 3100
Extra Kms = Kms travelled - Kms allowance
= 2900 - 3100 = 0
Extra Kms charge = Extra Kms * Charge per extra Km
= 0 * $1 = $0
Reading 3 taken on date: 13th August (July end reading is not taken)
Charge Interval: 1st July - 13th August (Interval covers two different months)
Number of days in this interval = Days covered in the 1st month + Days covered in the next month
= 31 + 13 = 44
Kms travelled: 6000
Kms allowance = [(Monthly allowance/Number of days in month1) * Days covered in the 1st month] +
[(Monthly allowance/Number of days in month2) * Days covered in the 2nd month]
= (3100/31)*31 + (3100/31)*13 = 4400
Extra Kms = Kms travelled - Kms allowance
= 6000 - 4400= 1600
Extra Kms charge = Extra Kms * Charge per extra Km
= 1600 * $1= $1600
Max charge for the interval = [(Monthly max charge/Number of days in month1) * Days covered in the 1st month] +
[(Monthly max charge/Number of days in month2) * Days covered in the 2nd month]
= (500/31)*31 + (500/31)*13 = $709.68
Actual Extra Kms Charge = $709.68
Reading 4 taken on date: 28th August
Charge Interval: 14th August - 28th August
Number of days in this interval = 15
Kms travelled: 1000
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*15= 1500
Extra Kms = Kms travelled - Kms allowance
= 1000 - 1500 = 0
Extra Kms charge = Extra Kms * Charge per extra Km
= 0 * $1= $0
Reading 5 taken on date: 28th September
Charge Interval: 29th August - 28th September
Number of days in this interval = Days covered in the 1st month + Days covered in the next month
= 3 + 28 = 31
Kms travelled: 3300
Kms allowance = [(Monthly allowance/Number of days in month1) * Days covered in the 1st month] +
[(Monthly allowance/Number of days in month2) * Days covered in the 2nd month]
= (3100/31)*3 + (3100/30)*28 = 3193.33
Extra Kms = Kms travelled - Kms allowance
= 3200 - 3193.33 = 106.67
Extra Kms charge = Extra Kms * Charge per extra Km
= 106.67 * $1 = $106.67
Reading 6 taken on date: 15th October (i.e. few days before the dropoff date)
Charge Interval: 29th September - 15th October
Number of days in this interval = Days covered in the 1st month + Days covered in next month
= 2 + 15= 17
Kms travelled: 1200
Kms allowance = [(Monthly allowance/Number of days in month1) * Days covered in the 1st month] +
[(Monthly allowance/Number of days in month2) * Days covered in the 2nd month]
= (3100/30)*2 + (3100/31)*15 = 1076.66
Extra Kms = Kms travelled - Kms allowance
= 1200 - 1076.66 = 123.34
Extra Kms charge = Extra Kms * Charge per extra Km
= 123.34 * $1 = $123.34
Reading 7 taken on dropoff date: 19th October - This reading can be taken using the Odometer reading screen or through a normal return workflow on a booking form.
In both cases, it adds a new reading in the odometer readings table (it doesn't add a new reading if Kms out on a booking form matches the latest odometer reading), and the charge for it needs to be created manually using the Mileage Charge creatin screen.
Note that when a booking has at least one Monthly mileage charge fee, the normal Extra Kilometer charges are not calculated automatically on returning the booking.
Charge Interval: 16th October - 19th October
Number of days in this interval = 4
Kms travelled: 420
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*4 = 400
Extra Kms = Kms travelled - Kms allowance
= 420 - 400 = 20
Extra Kms charge = Extra Kms * Charge per extra Km
= 20 * $1 = $20
Note: It is not mandatory to create the Extra Kms charge for each odometer reading every month; a single charge can be created for multiple odometer readings. In this case, the total allowance and total Kms travelled are calculated for the entire charge duration, instead of calculating them separately for each reading interval or for each month.
In the above scenario, if the first charge is created for all the readings together, the calculations will be as described below:
Charge Interval: 7th May to 19th October
Number of days in this interval = 166
Total Kms travelled: 3000 + 2900 + 6000 + 1000 + 3300 + 1200 + 420 =17820
Total Kms allowance = [(Monthly allowance/Number of days in month1) * Days covered in the 1st month] +
[(Monthly allowance/Number of days in month2) * Days covered in the 2nd month]+
[(Monthly allowance/Number of days in month3) * Days covered in the 3rd month] +
[(Monthly allowance/Number of days in month4) * Days covered in the 4th month]+
[(Monthly allowance/Number of days in month5) * Days covered in the 5th month] +
[(Monthly allowance/Number of days in month6) * Days covered in the 6th month]
= (3100/31)*25 + (3100/30)*30 + (3100/31)*31 + (3100/31)*31 + (3100/30)*30 + (3100/31)*19 = 16800
Extra Kms = Kms travelled - Kms allowance
= 17820 - 16800 = 1020
Extra Kms charge = Extra Kms * Charge per extra Km
= 1020 * $1= $1020
Note that for the same duration, the total charge is different when it's calculated separately for each reading interval vs when its calculated for multiple readings together.
For the most accurate calculation of Monthly type charge, make sure that:
Start date for charge creation = Previous charge date + 1 (or booking pickup date if it's the first charge)
End date for charge creation = Date on which the latest odometer reading is taken.
Calculations for Anniversary month type:
Booking Pickup date: 7th May
Booking Dropoff date: 19th October
Kms option: 3100 Kms per month, $1 per extra Km
Max Charge: $500 per month
Reading 1 taken on date: 7th June
Charge Interval: 7th May - 7th June
Number of days in this interval = 31 (the number of days are exclusive of the first day; for monthly calculation type, the number of days for this interval would be 32)
Kms travelled: 3200
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*31 = 3100
Extra Kms = Kms travelled - Kms allowance
= 3200 - 3100 = 100
Extra Kms charge = Extra Kms * Charge per extra Km
= 100 * $1 = $100
Reading 2 taken on date: 7th July
Charge Interval: 7th June - 7th July (Note that for Anniversary type, the interval should start from the previous charge date)
Number of days in this interval = 30
Kms travelled: 2900
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/30)*30= 3100
Extra Kms = Kms travelled - Kms allowance
= 2900 - 3100 = 0
Extra Kms charge = Extra Kms * Charge per extra Km
= 0 * $1 = $0
Reading 3 taken on date: 5th August
Charge Interval: 7th July - 5th August
Number of days in this interval = 29
Kms travelled: 3500
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*29
= 2900
Extra Kms = Kms travelled - Kms allowance
= 3500 - 2900 = 600
Extra Kms charge = Extra Kms * Charge per extra Km
= 600 * $1 = $600
Max charge for the interval = (Monthly max charge/Number of days in a month) * Number of days in an interval
= 500/31 * 29 = 467.74
Actual Extra Kms Charge = $467.74
Reading 4 taken on date: 5th September
Charge Interval: 5th August - 5th September
Number of days in this interval = 31
Kms travelled: 3200
Kms allowance = (Monthly allowance/Number of days in a month) * Number of days in an interval
= (3100/31)*31 = 3100
Extra Kms = Kms travelled - Kms allowance
= 3200 - 3200 = 100
Extra Kms charge = Extra Kms * Charge per extra Km
= 100 * $1 = $100
Assuming no more odometer readings are taken manually, so the 'Kms in' value entered on the booking form during the return workflow on 19th October creates the odometer reading automatically. The Kms charge needs to be created for this interval manually.
Reading 5 automatically added on date: 19th October
Charge Interval: 5th September - 19th October (i.e. 5th September - 5th October + 5th October - 19th October)
Number of days in this interval = 44
Kms travelled: 5500
Kms allowance = [(Monthly allowance/Number of days in month1) * Days covered in the 1st month] +
[(Monthly allowance/Number of days in month2) * Days covered in the 2nd month]
= (3100/30)*30 + (3100/31)*14 = 4500
Extra Kms = Kms travelled - Kms allowance
= 5500 - 4500 = 1000
Extra Kms charge = Extra Kms * Charge per extra Km
= 1000 * $1 = $1000
Max charge for the interval = [(Monthly max charge/Number of days in month1) * Days covered in the 1st month] +
[(Monthly max charge/Number of days in month2) * Days covered in the 2nd month]
= (500/30)*30 + (500/31)*14 = $725.81
Actual Extra Kms Charge = $725.81
Note that a single charge can be created for multiple readings, similar to the Monthly cycle type.
For the most accurate calculation of the Anniversary type charge, make sure that:
Start date for charge creation = Previous charge date (or booking pickup date if it's the first charge)
End date for charge creation = Date on which the latest odometer reading is taken.
Note: If you have not added any Monthly mileage charge on a booking, a normal kilometers charge will be automatically calculated and added to the booking at the time of return, even if you have enabled the Monthly mileage charging and have added monthly odometer readings.
Daily Kms allowance calculation when a Daily Kms option is used instead of Monthly:
If you prefer to use a Kms option where daily Kms are specified instead of monthly, that daily Kms value is not used directly in the charge calculations, instead the daily Kms allowance is calculated using the Monthly Rate Structure in your system.
The length of a month in your system can be set up here: net/list/ratestructuremonthly
If you use a Kms option which has Daily Kms allowed = 100
Length of a month in above setup = 30 days
Monthly allowance = 100*30 = 3000 Kms
Actual Daily Allowance = Monthly Allowance/Number of days in a month where the start date lies
e.g.
If you are creating a charge for the month of September, Actual Daily Allowance = 3000/30 = 100Kms daily
If you are creating a charge for the month of October, Actual Daily Allowance = 3000/31 = 96.77Kms daily
As you can see, the Daily Kms allowance is not 100Kms for every month even if you are using a Kms option that has Kms allowed per day=100.
Important Articles
- Whats New in RCM
- Getting Started with RCM
- Standard RCM Procedures
- Card Vault Deprecation 2025 – Frequently Asked Questions
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