Cost Per Mile Calculator

Know your number. Every successful owner-operator knows their cost per mile down to the penny. If you don't, you're guessing at whether each load makes or loses money.

Your Revenue

How much you bring in annually (gross).

$
miles
Revenue per mile: $1.80

Fixed Costs (monthly)

These bills come whether you drive or not.

$
$
Auto liability + physical damage + cargo + GL
$
UCR, IRP, IFTA, USDOT, base plates (monthly avg)
$
$
$
$
$
Parking, storage, LLC fees, etc.

Variable Costs (per mile)

These scale with how much you drive.

$
At $4/gal and 7 MPG = $0.57/mile
$
Industry average: $0.12-$0.20/mile
$
~$4,000-$5,000/yr for a tractor
$
$
Lumper fees, scale tickets, etc. (averaged per mile)

Your Numbers

Total Cost Per Mile
$1.42
You need to average above this to profit
$0.00 $1.80/mi revenue

Cost Breakdown

Fuel Fixed Maint. Other Tax
Fixed costs per mile $0.57
Variable costs per mile $0.76
Tax per mile $0.09
Total cost per mile $1.42
Revenue per mile $1.80
Profit per mile $0.38

Annual Summary

Gross Revenue $180,000
Total Expenses $142,000
Net Take-Home $38,000
Monthly Take-Home $3,167

Your Insurance Cost

Insurance per mile: $0.17
% of revenue: 9.3%

Insurance is typically 8-15% of gross revenue for owner-operators. If yours is above 12%, you may be overpaying — or you may be a new authority (where higher rates are normal for the first 2 years).

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Understanding Your Cost Per Mile

What's a Good CPM?

Under $1.30/mi

Excellent — you're running lean. Likely an experienced operator with a paid-off or low-payment truck, good fuel economy, and established lanes.

$1.30-$1.60/mi

Typical range for owner-operators with a truck payment. Sustainable if your revenue per mile stays above $1.80-$2.00.

$1.60-$1.90/mi

Getting tight. Common for new authorities with high insurance and truck payments. You need consistent $2.00+ loads to profit. Thin margin for surprises.

Above $1.90/mi

Danger zone. At this level, most loads lose money. Unless you're running specialized freight at $3+/mile, something needs to change — fast.

Where Owner-Operators Lose Money

Deadhead miles

Every mile without a load costs you $0.70-$1.00+ in fuel and wear. If 20% of your miles are deadhead, add $0.15-$0.20 to your effective CPM.

Detention time

Sitting at a dock earning nothing while your 14-hour clock runs. At $100/hour in lost productivity, 3 hours of detention on a $1,500 load wipes out your margin.

Factoring fees

Selling invoices at 2-5% discount. On $180K gross revenue, that's $3,600-$9,000/year — or $0.04-$0.09/mile you're giving away.

Breakdown repairs

Reactive maintenance costs 3-5x more than preventive. A $500 preventive service avoids a $3,000 roadside breakdown. Budget $0.15-$0.20/mile minimum.

5 Ways to Lower Your CPM

1
Reduce deadhead

Plan round trips. Build relationships with shippers on your backhaul lanes. Target 10% or less deadhead.

2
Improve fuel economy

Reducing speed from 68 to 62 mph saves 0.5-1.0 MPG. That's $3,000-$6,000/year on 100K miles.

3
Shop insurance at renewal

After 2 years of clean operation, your rates should drop 20-40%. If they don't, get quotes from other agencies.

4
Preventive maintenance

Replace parts on schedule, not when they fail. Track oil analysis, tire tread, brake pad thickness. Budget saves more than it costs.

5
Negotiate better rates

Know your CPM so you can walk away from loads that don't cover costs. The confidence to say "no" is worth more than any negotiation trick.

Want to lower the insurance line in your CPM? We'll give you real numbers.

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