How Does GPS Tracking Work?

GPS tracking works by using a network of 31 satellites orbiting Earth to calculate a device's precise location by measuring the time it takes for radio signals to travel from multiple satellites to a ground-based receiver. This technology, originally developed by the U.S. Department of Defense, is now freely available to businesses and consumers worldwide. By combining satellite positioning data with cellular networks and cloud platforms, modern GPS fleet trackers give businesses real-time visibility into vehicle locations, driver behavior, and operational efficiency.

How GPS Satellites Calculate Your Location

The GPS constellation consists of at least 31 satellites in six orbital planes, approximately 12,550 miles above Earth. GPS works through trilateration: a receiver picks up signals from multiple satellites simultaneously, calculates distance based on signal travel time (since signals travel at the speed of light), and with signals from at least four satellites, determines a precise three-dimensional position.

How Fleet GPS Trackers Transmit Data

After calculating position via GPS, a tracker uses a cellular modem (4G LTE) to transmit location data to cloud servers. This GPS + cellular combination enables real-time fleet tracking. When cellular signal is weak, trackers use cell tower triangulation as backup.

Types of GPS Trackers for Fleet Management

OBD-II Vehicle GPS Trackers

OBD-II trackers plug into the vehicle's diagnostic port—no installation required. They provide access to vehicle diagnostics, fuel consumption data, and real-time location.

Hardwired GPS Trackers

Hardwired trackers connect directly to a vehicle's battery. They provide continuous power, hidden installation, and access to additional vehicle systems.

Portable and Magnetic Mount Trackers

Fully self-contained devices with built-in batteries, useful for temporary tracking or equipment monitoring.

Real-Time vs. Passive GPS Tracking

Real-time trackers update every 5-30 seconds—essential for dispatch, safety monitoring, and theft prevention. Passive trackers record at longer intervals and upload less frequently—suitable for daily route analysis and compliance reports.

Factors That Affect GPS Accuracy

Signal obstruction (buildings, tunnels, trees), satellite geometry, atmospheric conditions, and multipath error (signals bouncing off surfaces) all affect accuracy. Under optimal conditions, civilian GPS achieves 5-10 meter accuracy.

→ See fleet tracking plans starting at $14.95/mo

How Fleet Tracking Platforms Display Data

Real-time dashboards show each vehicle as a marker on an interactive map. Historical playback lets you replay movements for any date range. Geofencing triggers alerts when vehicles enter or exit boundaries. Plans start at $14.95/vehicle/month (monthly) or $8.95/vehicle/month (annual). Free tracker included.

Practical Applications for Small Service Businesses

Dispatch optimization, proof of service, driver accountability, preventive maintenance, and fuel cost management—all enabled by GPS tracking data.

Spytec GPS is a self-serve GPS tracking platform for small and mid-size fleets, with plans starting at $8.95/vehicle/month and no long-term contracts.

Frequently Asked Questions

Can GPS trackers work without cellular service?

GPS receivers calculate position using satellite signals alone. However, transmitting that data to your dashboard requires a cellular connection. Some trackers store data locally and upload when service returns.

How much data does a GPS tracker use?

A typical tracker transmits 5-50 kilobytes per update. Spytec's pricing is flat-rate per vehicle per month—no overage fees.

Is GPS tracking legal for my fleet?

Yes, tracking vehicles you own is legal in all U.S. states and most countries. Disclose tracking to employees in employment agreements.

How long does GPS data stay in the cloud?

Spytec retains GPS tracking data indefinitely. You can access location history, generate reports, and replay routes from any date.

Can GPS trackers work inside buildings?

GPS signals don't penetrate buildings reliably. Trackers lose GPS signal indoors and rely on cellular triangulation. Outdoor and entry/exit tracking works perfectly; indoor pinpoint accuracy does not.