Cost Per Mile Calculator
Know your costs. Grow your profits.
CALCULATE YOUR COSTS IN 5 QUICK MINUTES
As an owner of a trucking company, one of the most important things you can do before you start negotiating freight rates with shippers and brokers is to understand your cost per mile. Knowing and anticipating costs for your company enables you to forecast your expected profits. It can mean the difference between success and failure.
You’ll need the following information to complete the calculation:
- Fixed Costs – These costs stay the same month to month. Fixed costs include things like insurance, truck and trailer payments, mobile phone plan, ELD and health insurance premiums.
- Variable Costs – These costs can increase or decrease based upon the number of miles you drive each month. or example, fuel is a variable expense. Some months you drive more or less than others and your fuel costs reflect that. Other variable operator expenses include meals, lodging, tolls, tires, truck maintenance and repairs.
- Total Miles Driven – The most important number for this calculation is the total number of miles that you will drive in a given month. This number of miles includes compensated miles and deadhead (not compensated) miles.
- Total Revenue – This number helps you determine your profit per mile. Just add up all of your invoices and enter them in the revenue section.
After you complete the calculation, use the eCapital Cost Per Mile Calculator to play with the numbers and see how you can maximize your profits. More miles driven can mean more profits, for the most part. Your fixed costs don’t change so your CPM goes down as you drive more. However, your variable costs will go up as your miles increase.
For most drivers, cutting variable costs, including saving money on fuel and not relying on expensive load boards, leads to higher profits. You have some control over those costs, which can have a substantial impact on your bottom line.
Ditch the expensive or competitive loads board and connect with eCapital’s free broker network for access to high-paying, credit approved, factorable loads. Bring down your CPM further by using fuel discount cards. With the eCapital fuel card you can save thousands per year, per truck directly at the pump.
Driving more, taking on higher paying loads, cutting down fuel costs and stopping the reliance on expensive load boards can add up to a lower cost per mile and bigger profits.
It’s a tough job on the road and we want to make sure you know your costs so you can grow your profits. Happy driving!
Say hello to fast cash.
eCapital understands the cash flow demands you face and gets you the immediate funds you need for your transportation business. No matter if you have 1 truck or 100, we can get you quick cash you need to:
- Pay for fuel and equipment.
- Cover insurance and operating expenses.
- Take care of anything your business needs!
It’s simple, fast and free to get started. Why not get a no-obligation quote today?
Start Calculating Now!