Why cost per mile is your most important number
If you don't know what it costs to run one mile, you can't tell a good load from a bad one. Cost per mile (CPM) is the floor. Any rate below it loses money, even if the load looks big.
Fixed vs variable costs
Split your costs into two groups.
Fixed costs you pay whether the truck moves or not:
- Truck payment or lease
- Trailer payment (if you own one)
- Insurance
- Permits, plates, IRP, UCR
- ELD, phone, load board and accounting subscriptions
- Parking
Variable costs go up with every mile:
- Fuel
- Repairs and maintenance
- Tires
- DEF
- Tolls
Don't forget your own pay. If you don't count it, you're working for free.
Seeing a light on the dash? Snap it with DERATE and know if you can keep driving
How to calculate it, step by step
- Add up your fixed costs for a year. Use real bills, not guesses.
- Estimate your total miles for the year, loaded and empty. Use your last 12 months if you have them.
- Fixed cost per mile = yearly fixed costs ÷ yearly miles.
- Fuel cost per mile = fuel price per gallon ÷ your real mpg.
- Add other variable costs per mile: a maintenance reserve, tires, tolls, DEF.
- Add your pay per mile = the salary you want ÷ yearly miles.
- Total cost per mile = fixed + variable + your pay.
- Adjust for deadhead. You only get paid on loaded miles, so divide total yearly cost by loaded miles. That gives your cost per loaded mile.
Worked example (example numbers only)
These numbers are made up to show the math. Use your own. For fuel, use the latest diesel price where you buy.
Example yearly miles: 110,000 total, with 12% deadhead, so 96,800 loaded miles.
Example fixed costs per month:
- Truck payment: $2,500
- Insurance: $1,200
- Trailer payment: $600
- Permits, ELD, phone, subscriptions: $250
- Total: $4,550 per month → $54,600 per year
Fixed cost per mile = $54,600 ÷ 110,000 = $0.496
Example variable costs per mile:
- Fuel: $6.28 per gallon ÷ 6.5 mpg = $0.966
- Maintenance reserve: $0.20
- Tires: $0.04
- Tolls: $0.03
- Total variable: $1.236
Example driver pay: $70,000 per year ÷ 110,000 = $0.636
Total cost per mile: $0.496 + $1.236 + $0.636 = $2.368
Cost per loaded mile: ($2.368 × 110,000) ÷ 96,800 = about $2.69
In this example, a load paying under about $2.69 per loaded mile doesn't cover costs plus the target pay. Notice how much fuel moves the answer: every dollar per gallon adds about 15 cents per mile at 6.5 mpg.
Benchmarks to compare against
ATRI's 2025 operational cost study put the average for trucking fleets at a record $2.336 per mile. Some line items from that study:
- Driver wages: $0.818
- Fuel: $0.482
- Truck payments: about $0.28
- Repair and maintenance: about $0.22
- Driver benefits: $0.210
- Trailer payments: about $0.12
- Insurance: about $0.11
- Tires: about $0.05
- Tolls: $0.043
These are fleet averages from a year with lower fuel prices, not owner-operator numbers. Use them to see if one of your costs is far off, not as your own CPM.
Tips to lower your cost per mile
- Cut deadhead. Plan backhauls before you deliver.
- Watch idle time and speed. Both drive fuel use.
- Keep a maintenance reserve in a separate account every week.
- Fix small problems early. A sensor or a leak is cheaper than a derate, a tow and lost days.
- Recalculate every quarter. Fuel, insurance and rates change.
When to call a professional
Talk to an accountant who works with truckers about taxes, depreciation and per diem. They change your real numbers. And when the truck shows a warning lamp, get it diagnosed early. Unplanned downtime is one of the most expensive costs you have.
FAQ
What is a good cost per mile for an owner-operator?
It depends on your truck, freight and miles. Calculate your own. ATRI's 2025 fleet average of $2.336 per mile is a reference point, not a target.
Should I include my own salary in cost per mile?
Yes. If you leave it out, you'll take loads that only pay the truck and not you.
How do I account for deadhead miles?
Divide your total yearly cost by loaded miles only. That gives the minimum rate per loaded mile you need.