The formula
Cost per mile = (fixed costs + variable costs) ÷ total miles
Use a full month or a full quarter, never a single good week. Total miles means every mile, including the empty ones to the pickup.
Step 1 and 2: fixed and variable costs
Fixed costs are the same whether the truck runs or sits:
- Truck and trailer payments or lease
- Insurance
- Plates, permits and IRP
- ELD, phone and software
- Parking and the office
Variable costs grow with every mile:
- Fuel
- Driver pay, if paid by the mile or by the load
- Maintenance and tires
- Tolls and scales
- Fuel tax under IFTA
Step 3: a worked example
These are example numbers for one truck in one month, not an average. Put in your own.
| Cost | How it is worked out | Month |
|---|---|---|
| Fixed costs | Payments, insurance, permits, ELD | $5,000 |
| Fuel | 10,000 miles ÷ 6.5 MPG × $3.80 a gallon | $5,846 |
| Driver pay | 10,000 miles × $0.65 | $6,500 |
| Maintenance and tires | 10,000 miles × $0.18 | $1,800 |
| Tolls and other | $300 | |
| Total | $19,446 |
$19,446 ÷ 10,000 miles = $1.94 a mile
Step 4: your break even rate per loaded mile
Brokers pay for loaded miles, but the truck burns money on the empty ones too. Divide your costs by the loaded miles only to see the lowest rate that covers them.
In the example, 15% of the miles were empty: 8,500 loaded miles
$19,446 ÷ 8,500 loaded miles = $2.29 a loaded mile
Any load under that rate loses money, unless it sets up a better reload. Profit is whatever you get above it.
Keep it current
Fuel prices, repairs and insurance change, so work it out again every month. The numbers come from what you already record: fuel receipts, repair bills and the miles on each load. See what an owner operator needs in software.