# Towing Company Startup Cost Worksheet: What to Budget For

Towing company startup cost worksheet: one-time and monthly cost categories to budget for, with a free calculator for your own quotes.

Source page: https://cheapcheapwebsites.com/small-business-guides/industries/towing/startup-cost-worksheet/
Updated: October 6, 2026

Towing startup costs include trucks (wheel-lift, rollback, possibly heavy-duty), equipment such as dollies, skates, winch lines, lockout tools and jump packs, lights and safety gear, insurance (often a major monthly cost), licensing, a storage lot lease and fencing, dispatch software and phones, and a website. Fuel and maintenance are ongoing costs that scale with calls.

## Itemized budget

| Line | What it covers | How to get the number |
| Trucks | Wheel-lift, rollback | Dealer quotes, used inspected |
| Equipment | Dollies, skates, chains, straps, winch cable | Supplier quotes |
| Roadside tools | Lockout kit, jump pack, air compressor | Supplier quotes |
| Lighting and safety | Light bars, cones, vests | Supplier quotes |
| Insurance | Auto, on-hook, garagekeepers | Agent quotes |
| Storage lot | Lease, fencing, lighting, signage | Landlord and contractor |
| Licensing | City, county, state | Agency fee schedules |
| Dispatch | Software, phones, GPS | Monthly plans |
| Website | Service area, request form | From $399 plus $30/month Website Care |

## Worked example: pricing a call

Ray sets prices for consent tows by adding his hook-up fee, a per-mile rate and any after-hours or special equipment charge. He checks his city's maximum rates for non-consent tows and keeps those within the limit. He tracks cost per call, including fuel, insurance share and driver pay, to make sure motor club rates cover the work.

## Costs owners forget

- Winch cable and strap replacement
- Truck downtime
- Unpaid storage on abandoned vehicles
- Overtime during storms
- Card processing fees

## Where to save and where not to

New towing owners often save by buying a reliable used wheel-lift or rollback with service records and adding equipment over time. Do not save on insurance, straps, chains and winch cable, lighting, or driver safety gear. A single failed strap or an uninsured claim can end a young company. Keep a repair reserve too; a truck down for a week during a storm means missed revenue and partners calling someone else.

## One-time costs

| Item | Your quote |
| Trucks | $ ______ |
| Licensing and permits | $ ______ |
| Lot setup | $ ______ |
| Website build and domain | $ ______ |

## Monthly costs

| Item | Your quote |
| Fuel | $ ______ / month |
| Insurance | $ ______ / month |
| Maintenance | $ ______ / month |
| Dispatch software | $ ______ / month |
| Website care | $ ______ / month |

## Free tools

Startup cost calculator · Break-even worksheet

## Common questions

### Is insurance expensive for towing?

It is often one of the largest costs; get quotes before buying trucks.

### Should I start with a rollback?

Rollbacks handle more vehicle types without damage; wheel-lifts are fast for many tows.

### Do motor clubs pay enough?

Rates vary; track cost per call to judge.

### Do I need a storage lot?

If you do impounds or police tows, yes.

### Should I start with one truck?

Many companies start with one or two trucks and add as call volume and contracts grow.

### Do I need a separate yard?

Only if you store vehicles; otherwise trucks can park where allowed.

## Sources

- SBA: Calculate your startup costs: https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs

Websites from $399 with domain included: https://cheapcheapwebsites.com/products