Cost Per Mile Calculator
Calculate your total trucking cost per mile including fuel, insurance, truck payment, maintenance, permits, and other expenses.
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How It Works
Knowing your true cost per mile is the single most important number for any trucking operation. It tells you whether a load is profitable before you accept it. Most owner-operators run between $1.20 and $1.85 per mile in total operating costs, with fuel being the largest variable expense.
The Formula
Total Monthly Expenses = Fuel + Insurance + Truck Payment + Maintenance + Permits + Other
Variables
- Fuel — Monthly diesel fuel expense, typically 30-40% of total costs
- Insurance — Monthly commercial truck insurance premium
- Payment — Monthly truck loan or lease payment
- Maintenance — Monthly average for repairs, tires, oil changes, and preventive maintenance
- Miles — Total revenue and deadhead miles driven per month
Worked Example
An owner-operator with $5,000 fuel, $1,200 insurance, $2,000 truck payment, $800 maintenance, $200 permits, and $500 other costs driving 10,000 miles per month has a total cost per mile of $9,700 / 10,000 = $0.97/mile.
Practical Tips
- Track fuel cost per mile separately since it fluctuates the most and is your largest controllable expense. Discuss this approach with experienced practitioners in your area, as local conditions and practices may affect how this advice applies to your situation.
- Include deadhead miles in your total to get a true cost per mile, not just loaded miles. Negotiate deadhead pay (typically $1.00-$1.50 per mile) for any load requiring more than 50-75 miles of unpaid travel to the shipper.
- Review your cost per mile quarterly to catch rising expenses before they erode your profit. Keeping a written record of this information helps you make consistent, data-driven decisions over time rather than relying on memory alone.
- Negotiate rates above your cost per mile plus at least 15-20% to ensure a healthy margin. Start implementing this practice on a small scale to verify the results before applying it across your entire project or operation.
- Use fuel cards and plan routes through states with lower diesel prices to cut fuel costs. Stack fuel card discounts with location-based pricing strategies by filling up at stops where the card discount applies AND the base price is competitive.
Frequently Asked Questions
What is a good cost per mile for a trucking company?
Most owner-operators aim for total operating costs between $1.20 and $1.85 per mile. Costs below $1.50/mile are considered competitive for a well-maintained truck with reasonable financing.
What is the biggest expense in trucking?
Fuel is the largest expense, typically 30-40% of total operating costs. For a truck averaging 6 MPG at $4.00/gallon, fuel alone costs about $0.67 per mile.
Should I include deadhead miles in cost per mile?
Yes. Your truck costs money to run whether loaded or empty. Including deadhead miles gives you a true cost per mile so you can price loads accurately.
How do I lower my cost per mile?
Drive more miles to spread fixed costs, reduce deadhead percentage, use fuel cards for discounts, maintain your truck to prevent costly breakdowns, and shop insurance annually.
What costs are fixed vs variable in trucking?
Fixed costs include truck payments, insurance, and permits — they stay the same regardless of miles. Variable costs include fuel, maintenance, and tolls which increase with miles driven.