How Much Does It Cost Per Mile For You To Operate?

[Bullwinkle]

I am curious how many of you out there have calculated what it costs to operate your business.

Also, list the factors you include in your calculations. I am sure that there are some things that some drivers may be unintentionally leaving out, and by seeing what other people factor in, it will help everyone to get a better understanding of how to make this calculation more accurate.

For example, one thing I would factor in, even if I had no truck payment, is a truck payment. Basically, the estimated cost of a tractor, spec'd out the way I want one spec'd out, and divide the cost over the course of 60 months. This way, I have money going into my business account that is set aside for the purchase of a new truck every 5 years, without the need of paying interest to a finance company.

[Wyatt Earp]

I have a worksheet made up but it is in microsoft excel so i can't post it here.

[Bullwinkle]

Quote:

Originally Posted by Wyatt Earp I have a worksheet made up but it is in microsoft excel so i can't post it here.

Could you post all the items you include in your calculations?

[Wyatt Earp]

Cost of Operations
(based on 100,000 miles a year)In the example below, the drivers income is based on 30% of the Total Cost of Operation.Total Miles Driven AnnuallyFIXED COSTSANNUAL COSTSMONTHLY COSTSCENTS PER MILETruck Payment,Trailer Payment,Collision/Comp Insur,Bobtail Insur,Cargo Insur.Health Insur.,Licenses,Permits,Accounting Svcs,Return on InvestmentTotal Fixed Costs:$0.00$0.00#DIV/0!VARIABLE COSTSPrice of Fuel$4.029Tractor Fuel,Reefer Fuel,Tractor/Trailer Tires,Maintenance,Repair,Truck Wash,Telephone,Lodging,Meals,Loading/Unloading Charges,Tolls,Legal Fees,Fines,Cargo Claims,Scale Fees,Workman's Compensation,Taxes(Road, Use, Fuel, Fed),Miscellaneous Expenses,Total Variable Costs:$0$0.00#DIV/0!Total Vehicle Costs:$0$0.00#DIV/0!Drivers Income:$50,000$4,166.67#DIV/0!Total Cost of Operation:$50,000$4,166.67#DIV/0!

[mr mopar]

I know that a lot of o/o,s do not like to do the math, but if you are going to make it in this business you had better start counting your pennies, so I will list some fixed and variable expenses and this is by no means all of the expenses. I will base this on a average of 2,200 miles per week for a total of 114,400 miles per year next we have truck payment of 1650.00 per month (this average with some higher, some lower). I will also include insurances, drivers pay , maintenance

THESE ARE FIXED COSTS

Miles per year 114,400
#1 Truck payment per year $19.800 =(17.3 cpm) cents per mile
#2 Truck insurance (for this I will value the truck at $50,000 this is just an avg.), $50,000@ 3.5% = $1,750.00 per year = (1.53 cpm).
#3 unladen insurance (bobtail) required by most states $650.00 per year = (0.0056 cpm)
#4 workman’s comp required by most states $400.00 per year =(0.0035 cpm).
# 5 2290,permits, tags $2.000.00 per year = ( 0.017 cpm)
# 6 truck maintenance $6864.00 = (0.06 cpm)
# 7 driver pay(YOU MUST PAY YOURSELF) $45,760 =(0.40 cpm) .
# 8 per deim out 260 days @ $35.00 per day = $9100.00 =(0.08 cpm).
So the fixed cost on items listed above is $0.73.9

THE VARIABLE COST IS MAINLY FUEL

# 1 The doe average for the week of 04-08-08 will be approximately $ 4.08 per gallon so 4.08 / 5.5 = (74.2 cpm)
please understand that are many more items that I have left out if you have your own authority, air cards, computers, phones, load board subscriptions, tolls and so on.

So cost per mile 0.73.9 + 0.74.2 = $148.1 per mile
If you own a trailer and $0.10 per mile

I know some of you will say my truck is paid for, but you are going to have to replace it sooner or later so it is always wise to factor a truck payment into you cost. YOU, WE MUST get out the company driver mentality of 90 cpm plus fuel. This is just averages some will be higher and some will be lower but this a good average.

[RobW]

Add in the cost of eating and in most cases evidently eating too much! heheh

Maybe $15.00 day, or near'bout $5,000-5500 annually for food on the road, depending on how many days you drive. Many drivers spend even more while some spend less by stocking a fridge while home.

[mr mopar]

the per deim @ $35.00 per day is for food,showers and what not again it is just a avg.

[FreightShakinDaddy]

$0.69 cents per mile as I like to Eat Out Often! !!!

[truckerstrike08]

Don't forget your Road King card at hope LOL or Pilot card

[Bullwinkle]

Quote:

Originally Posted by mr mopar I know some of you will say my truck is paid for, but you are going to have to replace it sooner or later so it is always wise to factor a truck payment into you cost.

This is a very important point to consider.

[Blakowt13]

At the Company I'm with, it costs roughly $1.17 per mile to operate at $4.20 per gallon.

[Wyatt Earp]

Quote:

Originally Posted by Blakowt13 At the Company I'm with, it costs roughly $1.17 per mile to operate at $4.20 per gallon.

I don't think your figures are right. If you have any truck payments or anything else to pay your figures are wrong. Based on you making 100,000 miles per year, Fuel= $4.20 divided by 6mpg = $.70 + driver pay at $.50 to make $50,000 per year alone are $1.20 per mile not counting any other expenses. Where are all your other expenses??????

[Blakowt13]

Since I'm NOT an O/O and never wanted to become one nor shall I, I am merely stating that of which the Owners talk about.
They look at what THEY look at and conclude with their own figures.
I just know that with the current and rising fuel prices, truck and trailer insurance, Trailer rental(lease) payment(s), Truck/Trailer Repairs, MY Pay and whatever other costs the Owners deem, the PER MILEAGE cost is of course ever increasing.
The amount I stated was for two weeks ago at what THEY SAY.
I'll say THEIR figures are incorrect yet THEY own the Company and Equipment.

[Wyatt Earp]

Yes the figures are wrong. This is part of the reason so many O/Ops are going out of business. Some do not know how to figure expenses correctly.

[Flatbedpete]

Quote:

Originally Posted by Wyatt Earp I don't think your figures are right. If you have any truck payments or anything else to pay your figures are wrong. Based on you making 100,000 miles per year, Fuel= $4.20 divided by 6mpg = $.70 + driver pay at $.50 to make $50,000 per year alone are $1.20 per mile not counting any other expenses. Where are all your other expenses??????

Operating cost should be the same as actual fuel cost, We are figured in at $1.72 per mile and we own all our equipment. Now add on the .50 for the driver as a minimum

[Wyatt Earp]

Quote:

Originally Posted by Flatbedpete Operating cost should be the same as actual fuel cost, We are figured in at $1.72 per mile and we own all our equipment. Now add on the .50 for the driver as a minimum

Right Now just to break even my expenses are around $2.05 per mile. So needless to say i need to get at least that to make money. As of today my minimum rate per mile is $2.55

[Flatbedpete]

Quote:

Originally Posted by Wyatt Earp Right Now just to break even my expenses are around $2.05 per mile. So needless to say i need to get at least that to make money. As of today my minimum rate per mile is $2.55

We are billing out at $2.60 standard flatbed and you know as well as I do I am not moving any freight for that price.

[bigtime]

I am not a total independent, but my company has no trucks of its own either.
Last year (2007):
-fixed costs were .24cpm (trailer payment, insurance, permits, property tax -the works)
-variable costs (fuel, tolls, oil changes, etc.) were .51cpm.

Grand total: .75 cpm


No truck payment in 2007. All tracked on the computer, has been for 6 years.

[Wyatt Earp]

Quote:

Originally Posted by bigtime I am not a total independent, but my company has no trucks of its own either. Last year (2007): -fixed costs were .24cpm (trailer payment, insurance, permits, property tax -the works) -variable costs (fuel, tolls, oil changes, etc.) were .51cpm. Grand total: .75 cpm No truck payment in 2007. All tracked on the computer, has been for 6 years.

Where is the driver pay? that has to be at least $.35 to $.50 per mile??????

[Wyatt Earp]

Also now with fuel at the rate it is you can't compare anything with 2007. fuel has almost doubled since Jan 07