Worked example
An owner-operator running 10,000 miles a month, with $3,500 of fixed costs: a $1,800 truck and trailer payment, $900 insurance, $300 permits and plates, and $500 of everything else.
- Fixed: $3,500 ÷ 10,000 = $0.350 per mile.
- Fuel: $3.90 diesel ÷ 6.5 MPG = $0.600 per mile.
- Running: $0.600 fuel + $0.600 driver + $0.180 maintenance + $0.040 tires = $1.420 per mile.
- Total: $0.350 + $1.420 = $1.770 per mile.
- At a $2.50 rate that is a $0.730 margin, or $7,300 a month.
The formula
Fixed CPM = monthly fixed costs ÷ miles per month Fuel CPM = diesel price ÷ MPG Running CPM = fuel + driver + maintenance + tires Total CPM = fixed CPM + running CPM Margin = rate − total CPM Profit = margin × miles per month
Pay yourself first
The single most common way this calculation goes wrong is leaving the owner wage out of driver pay. It makes the cost per mile look 50 to 70 cents lower than it is, which makes marginal loads look profitable.
Put a real wage in. If the truck cannot cover a wage you would accept from an employer, the business is subsidizing its customers with your time, and the number you need to see is the one that says so.
Why empty weeks hurt twice
Fixed costs do not care whether the truck moves. At 10,000 miles a month, $3,500 of fixed cost is 35 cents a mile. At 5,000 miles it is 70 cents, and the total cost per mile jumps from $1.77 to $2.12.
That is why a cheap load that keeps you moving is sometimes better than waiting for a good one, and also why a run of slow weeks quietly raises the rate you need on every load after them.
The costs that hide outside this form
The fields above cover the costs most owner-operators track. A few real ones sit outside them and quietly raise the true figure.
- Deadhead. If you run 15% empty, your revenue miles are fewer than your total miles. The fuel and wear still happen, so your real cost per loaded mile is higher than this calculation shows. Enter total miles, then price against loaded miles.
- Downtime. A truck in the shop earns nothing and still owes its payment and insurance. Two unplanned weeks a year is roughly 4% off your annual mileage, which raises fixed cost per mile by about the same.
- The replacement you are not saving for. Tires and maintenance are in the form. The engine rebuild and the next truck are not, unless you put a few cents a mile aside for them.
- Slow payment. Sixty-day terms mean financing two months of operating costs. If that is a factoring line, the fee belongs in your cost per mile.
Common mistakes
- Leaving out your own pay. The break-even is fiction without it.
- Using optimistic monthly miles. Use what you actually ran last quarter, not what you hope to run.
- Ignoring maintenance until it happens. Tires and repairs are per-mile costs even in the months nothing breaks. Set money aside per mile.
- Forgetting deadhead. If you run 15% empty, your revenue miles are fewer than your total miles and your real cost per loaded mile is higher.
- Quoting at break-even. A rate that exactly covers cost leaves nothing for a breakdown, a slow week or a customer who pays in 60 days.
FAQ
How do I calculate cost per mile?
Divide your monthly fixed costs by the miles you run in a month to get fixed cost per mile, then add fuel, driver pay, maintenance and tires per mile. The total is what one mile costs you.
What counts as a fixed cost?
Anything you pay whether or not the truck moves: the truck and trailer payment, insurance, permits, plates, tolls you prepay, parking, and accounting. These are the costs that punish you for sitting still.
Should I pay myself as the driver?
Yes. If you leave your own pay out, your break-even looks lower than it is and you will take loads that do not actually cover your time. Put a real wage in the driver pay field.
Why does my cost per mile go up when I run fewer miles?
Fixed costs stay the same but get spread across fewer miles. At 10,000 miles a month a $3,500 fixed bill is 35 cents a mile; at 5,000 miles it is 70 cents.
What margin should I be looking for?
That depends on your lane and your risk, but a rate that only just clears your cost per mile leaves nothing for a breakdown, a slow week or a customer who pays late. Price in the gap you need to survive those.
Rules last checked: Sep 24, 2026
Estimate only. Confirm with your carrier before booking.