Calculating cost per mile can help carriers estimate profit per mile or help them make an informed decision on whether they should take the load or not.
Calculating cost per mile is straightforward and can be done manually or with online free calculators.
We’ll discuss both methods here, but before that, a short intro about our trucking cost per mile calculator: If you want to pick a load but need to calculate how much it costs per mile, then this tool is for you. It automatically tells you the profit per mile as well.
Let’s discuss both methods in detail.
You first need to understand two important terms to use this tool.
These are the expenses that you pay monthly or yearly. They include but are not limited to:
Note: Before adding values in the fields, you must select the fixed payment period (monthly or yearly). Add values based on when you are charged for them, but ensure all values follow the same period, either monthly or yearly.
For example, if your truck payment costs $1200 per year, you can either enter it as a yearly cost or divide it by 12 to get $100 per month. Do the same for all other fixed expenses.
These are the expenses you’ll bear when delivering a specific load. If a dispatcher gives you a load that needs to be delivered in three days, you can estimate the following variable expenses:
Note: In this section, enter all values based on the load for which you want to calculate the cost per mile. Do not add values on a monthly, weekly, or yearly basis.
In this section, you need to enter:
Once you click the Calculate button, the tool will provide the cost per mile for that specific load and the profit per mile.
Note: Do not enter the total rate of the load. Instead, enter the rate per mile that you are being offered.
Once you have the profit per mile, multiply it by the total miles of the load to get your total profit. If you pick two similar loads per week, your weekly profit will be double that amount.
If you want to calculate the cost per mile manually, you need to consider three main factors:
If you pay the following expenses yearly, divide them by 12 to get the monthly cost:
Truck payment per month: $500
Insurance – Collision per month: $300
Insurance – Health per month: $250
License plate per month: $100
Permits per month: $150
Parking expenses per month: $80
Other fixed expenses per month: $120
Total Fixed Expenses: $1500
Variable expenses are costs that vary based on trips. Here’s an example of estimated monthly variable expenses:
Fuel costs: $800
Meals: $300
Broker fees: $200
Repairs and maintenance: $100
Lodging: $200
Tires: $60
Miscellaneous: $140
Total Variable Expenses: $1800
You can find the total miles covered by checking the odometer readings:
End of the month odometer reading – Beginning of the month odometer reading = Total miles covered
Example:
5600 – 2800 = 2800 mile
Use the following formula:
(Total fixed expenses + Total variable expenses) / (Total miles) = Cost per mile
$1500 + $1800 / 2800 = $1.17 per mile
Caution: Do not mix the tool’s cost per mile calculation with the manual method. The tool calculates the cost per mile for a specific load, while the manual method calculates the cost per mile per month.
If you select “Monthly Period”:
If you select “Yearly Period”:
We provide specialized dispatch solutions to help carriers and owner-operators run efficiently. Explore our key services below:
Loadlink Dispatching Corporation Services for Professional Owner- Operators
332-248-2620
admin@loadlinkdispatching.com
3838 Maple Ave, Brooklyn, NY 11224
