Calculate Your Cost Per Mile to Maximize Profits

HOW TO USE THIS CALCULATOR

In order to operate profitably trucking companies must first know their “all-in” cost-per-mile (CPM). Knowing this cost, is the only way to set a freight rate that will generate enough revenue to pay costs and generate a profit.

Enter your trucking company’s costs in each of the following fields to calculate CPM. Perform your CPM calculation on a regular basis, at least once per month should be the minimum. Be careful to include all costs, but ensure you don’t duplicate costs by including any one expense in more than one field. To calculate your trucking company's unique cost-per-mile, you must consider both fixed costs and variable costs.

NOTE: costs are to reflect the period you are reporting (ie: one week, one month, one year)

ENTER YOUR FIXED COSTS

Fixed costs are static expenses that your company must pay whether your trucks are hauling a load or sitting idle in the yard. Fixed costs include expenses like insurance, property leases, permits and other services. We've included sample monthly fixed cost numbers in each field below. To calculate your company's unique CPM change each value to reflect your company’s actual costs.

ENTER YOUR Variable Costs

Variable costs are related directly to the operating of trucks. These expenses include fuel, maintenance, repairs, meals, lodging and other costs incurred while on the road. We've included sample monthly variable cost numbers in each field below. To calculate your company's unique CPM change each value to reflect your company’s actual costs.

ENTER YOUR REVENUE & MILES

To determine your CPM and profits, please enter your monthly revenue and total miles driven.

YOUR RESULTS

The fields below display the calculation results from your entered data.

How Did You Do?

The two most important financial goals in trucking is to improve profits and maintain positive cash flow to keep your trucks moving. Is your CPM less than your Rate per Mile? The greater the difference, the greater the profits.

How to Improve Profits

Tip #1: The most effective way to increase your profit is to reduce your highest variable costs. Negotiate better rates with suppliers. Keep tabs on fuel pricing, supply and demand trends, and other influencers so you are prepared when negotiating rates.

Tip #2: Provide superior customer service and build relationships with brokers and shippers that offer the best paying loads.

Tip #3: Be flexible. Consider niche freight or lanes that pay higher rates.

Learn more about how to improve profits

How to Improve Cash Flow

The fastest, easiest way to create and maintain positive cash flow is to factor your invoices to gain immediate access to working capital.

Learn more about Freight Factoring