How we calculate this
- Total miles = loaded miles + deadhead miles
- Fuel cost = (total miles ÷ MPG) × diesel price
- Fixed cost = (monthly fixed costs ÷ miles per month) × total miles
- Variable cost = variable cost per mile × total miles
- Total cost = fuel + fixed + variable + tolls + lumper + driver pay + dispatch fee + factoring fee
- Net profit = gross rate − total cost
- Cost per mile = total cost ÷ total miles
- Net profit per mile = net profit ÷ total miles (or ÷ loaded miles)
- Profit margin = net profit ÷ gross rate
- Break-even rate = (costs not tied to the rate) ÷ (1 − % fees)
- Rate for your target = (costs not tied to the rate + target × total miles) ÷ (1 − % fees)
“% fees” are costs charged as a percentage of the rate: dispatch, factoring and driver pay when entered as a percentage. Your verdict compares net profit per total mile with your target (default $0.750/mi; change it in the calculator).
What is cost per mile?
Your cost per mile is what it costs to move your truck one mile, all-in. It's the number that tells you whether a rate is good: a $2.50-per-mile load sounds fine until you find out your truck costs $2.60 a mile to run. Brokers quote rates per loaded mile, but you pay for every mile, including deadhead, so this calculator shows both.
Worked example
A 500-mile load with 100 deadhead miles, a truck that gets 6.5 MPG with diesel at $4.00, $4,000 a month in fixed costs over 10,000 miles, and $0.18 a mile in maintenance and tires:
| Total miles | 500 + 100 = 600 mi |
|---|---|
| Fuel | 600 ÷ 6.5 × $4.00 = $369.23 |
| Fixed | $0.40/mi × 600 = $240.00 |
| Variable | $0.18/mi × 600 = $108.00 |
| Total cost | $717.23 ($1.195 per mile) |
| At a $1,500 rate | Net $782.77, $1.305 per total mile, $1.566 per loaded mile |
| At a $650 rate | Net -$67.23: a money-loser |
Break-even for this load is $717.23. Anything below that loses money once every mile is paid for.
Typical cost categories
Fixed costs
Same every month no matter how much you drive: truck and trailer payments, insurance, permits and registration, ELD and phone, parking.
Variable costs
Go up with every mile: fuel, maintenance, tires, repairs, and per-mile driver pay.
Per-load costs
Specific to a load: tolls, lumper fees, scale tickets, and fees charged as a % of the rate like dispatch and factoring.
FAQ
What is cost per mile in trucking?
Cost per mile (CPM) is everything it costs to run your truck divided by the miles you drive: fuel, fixed costs like your truck payment and insurance, and variable costs like maintenance and tires. If your rate per mile is below your cost per mile, the load loses money.
Should I include deadhead miles?
Yes. You burn fuel and wear the truck on empty miles too, so this calculator spreads costs over total miles (loaded + deadhead). It also shows profit per loaded mile, which is how most rate confirmations are quoted.
How do I work out my fixed cost per mile?
Add up your monthly fixed costs (truck and trailer payments, insurance, permits, phone, ELD subscription and similar) and divide by the miles you expect to run in a month. For example, $4,000 a month over 10,000 miles is $0.40 per mile.
What is the difference between the break-even rate and the target rate?
The break-even rate is the gross pay at which the load makes exactly $0 after all costs. The target rate is the gross pay you need to reach your own target net profit per mile. Both account for fees charged as a percentage of the rate, like dispatch and factoring.
Where does the diesel price come from?
When available, the diesel field is pre-filled with the U.S. Energy Information Administration (EIA) weekly U.S. average retail diesel price. Prices at your pumps can differ, so you can always type your own.
Is my information saved or shared?
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