Do you calculate your cost per mile?

786803

{"text":"What's your formula?  ","videos":"[]","link":"{}","pics":"[]","canComment":true}

255377

{"replyTo":"","text":"Cost per mile is fixed and variable. Fixed is going to be cargo insurance, 2290, base plate. Variable is maintenance, fuel, ifta, federal and state taxes. Cargo insurance premium is say 14,000 annual. 2290 is 550 annually, base plate is 2500 annually. ( add together and divide by miles annually ) .136 so 14 cents per mile (cpm). Then variable costs are maintenance, 10 cpm is a good baseline and fuel is different for every load but 45 cpm is a good guess and ifta is calculated quarterly and 2 cpm should cover it easily. Taxes are about 25 percent on the high side of your net for the week but in an operation that grosses 6000 you should net 3300 roughly depending on the variables (825 per week) about 25 cpm although that seems a bit high. You’ll probably be adding more than you need to your tax which is good come tax time. So all together it varies per load but roughly 96 cpm. If you’re running as an owner operator you can expect to take a dollar off your rate and that’s your profit basically. If you’re getting 80% of 1.75 then you’re making about 40 cpm (less than a company driver in some cases) most drivers don’t break down the math and actually know what they’re earning and carriers love them because they don’t have to maintain a truck and it costs them about the same. With all that you’re going to have to buy food on the road and pay the bills at home and you’ll need another truck someday so you have to save for that. It’s a lot and there are good contracts you just have to find them...","replyToPid":0}