Your cost per mile (CPM) is the single most important number in your trucking business. It tells you exactly how much it costs to move your truck one mile down the road — and without knowing this number, you're essentially guessing whether each load is profitable or losing you money.
Most owner-operators who struggle financially don't have a revenue problem — they have an expense awareness problem. They accept loads that seem decent on the surface but actually cost more to haul than they pay. This guide fixes that.
WHY COST PER MILE MATTERS
When a broker offers you $2.50 per mile for a load, you need to instantly know whether that's a good deal or a money-loser. If your cost per mile is $1.85, then $2.50/mile means $0.65 of profit per mile — solid. But if your cost per mile is $2.60, you'd actually be paying to haul that load.
Knowing your CPM lets you set a minimum rate — the lowest rate you'll accept — and make confident decisions on every load offer you receive.
THE TWO TYPES OF EXPENSES
Fixed Costs (You Pay These No Matter What)
Fixed costs hit you every month regardless of how many miles you drive or loads you haul:
- Truck payment: $1,200 - $2,500/month
- Trailer payment: $500 - $1,200/month
- Insurance: $1,200 - $3,000/month
- Permits and licensing: $50 - $150/month (annualized)
- ELD and technology: $30 - $100/month
- Phone and internet: $100 - $200/month
- Accounting/bookkeeping: $100 - $300/month
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WHAT ABOUT DEADHEAD MILES?
Here's where many owner-operators miscalculate: they forget about deadhead miles. If a load pays $3.00/mile for 500 miles but you have to drive 150 empty miles to reach the pickup, your effective rate drops significantly.
Effective Rate = Total Pay ÷ Total Miles (loaded + deadhead)
$1,500 ÷ 650 miles = $2.31 per mile effective
That $3.00/mile load is really a $2.31/mile load when you factor in the deadhead. Still profitable in our example, but a lot less impressive than it first appeared.
HOW TO LOWER YOUR COST PER MILE
- Drive more miles: The more miles you run, the more your fixed costs are spread out, lowering your per-mile cost
- Buy fuel strategically: Use a fuel card and fuel optimization apps to find the cheapest diesel on your route
- Minimize deadhead: Work with a dispatcher who plans round-trip lanes and minimizes empty miles
- Stay on top of maintenance: Preventive maintenance is 3-5x cheaper than roadside repairs
- Negotiate better rates: Even $0.10/mile more on every load adds up to thousands per month
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