Cost Per Mile: How to Calculate It and How To Use It
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- เผยแพร่เมื่อ 27 พ.ย. 2021
- What is Cost Per Mile? Why is it important? How do you calculate it?
My email: talkabouttrucking@gmail.com.
Open a Trucking Company Course: miranda-c-s-school.teachable.com/p/trucking-made-successful-carrier-course-starting-and-managing-a-trucking-company
Dispatch Course: miranda-c-s-school.teachable....
Website: www.truckingmadesuccessful.com
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This is the cost per mile for an owner-operator, and the cost per mile for a truck with a driver will be close to double if you consider the driver is making 50-70 cents per mile. Also, I think the $550 for the 2290 should be divided by 12 (or by the months of operation if the truck is parked for some time). Another thing to reconsider the is the maintenance costs. At 11K miles/month you are doing an oil change every 1-2 months depending on preference, and that alone is $400-$600. I think it's more accurate to look at the previous years' maintenance costs, assume the same, and divide that by 12 months to get a better understanding of what it will cost per month for maintenance. This will give a more averaged out and accurate representation of what it costs to operate a truck. Average cost per mile for a truck with a driver is around $1.5-$2.25.
yes you are right also i Was Asking my self all these expenses she didn't mention dispach / fuctoring/ oil change truck pyments trailer lease parking and many more its not that easy and this time is dead 2023 if get gros 2 per mile you lucky
@Baasovlogs I think she should have still included insurance break down month to month, although she pays it off up front. That expense still comes from her overall income, unless she being gifted insurance yearly.
Stay in hotel off sets and wear and tear
One gallon per hour idling
Thank you for all your help. I don’t know what I do without you.
Great content!! Thanks for sharing your knowledge with us.
Thank you so much for this video. I created a spreadsheet but wasn't sure how to obtain my rate per mile before watching your video. I'm excited that it takes even less guesswork out. Thank you :D
I love your videos... Very detailed I been watching them all week
Wow You're Awesome. !
Just starting a new van express company and w my m.c., your info is so valuable/ helpful. Thank you x 1000
Luigi
I simply enjoyed this video and loved that you tackled this aspect of the business. I think this will be such a valuable asset for dispatchers to uncover and discuss with their carriers so they can see this part of the financial health of their trucking business.
Your information and presentation is very good. Thanks so much for sharing!
Super clear teaching !
Learning is easy and fun.
Thanks, Rio
I wish you guys had a training program! I love the transparency you have with your company. I am looking to get my starting experience with Knight and hoping to gain more experience to be able to work with you in the future!
I really appreciate your spirit and everything you shared here. I don’t do it often, but I clicked that SUBSCRIBE button before I even finished watching. 😀 Go on, girl…be the force to be reckoned with!!! 😉
That was awesome and simple to follow. One educator to another, you have great delivery. I look forward to your negotiation videos.
I was in business 6 years and never knew my cost per mile but I will this time around I subscribed to your channel would like to see every video you have thank you very much
Your explanation along made me subscribe to your channel. I be will looking at your past videos and waiting on future ones. Thank you for the knowledge and your contribution this trucking industry...
You are amazing. You should have close to 1 million subscribers. Your breakdown is so simple even a child can learn this, Thank you
You are a good teacher, thank You for your patience experience, 😍
As an Owner Operator this was so factual & on point!! 5 🌟 rate!!
Hi,
I find your videos very educational and informative, giving key factors and actual working statistics.
Your explanation is amazing
Amazing work and demonstration … Gracias 🙏 Thanks
Thank you so much, these are valuable information.
Thank you so much for sharing this information. Very helpfull. Really appreciated.
Love your videos learning a lot. !!!
Ive been learning so much from you thank you so much!!!!
Great video. You are the best I’ve seen explaining these topics, with a lot of clarity. BUT wouldn’t the fixed expenses of 914$ have to be divided by 12 to have a more accurate number since it’s only for July.
You are smart and kind well done
Thank you! Very informative !
Hi Miranda, thanks for the information! You can add the file to your website and then post a link on youtube video description. That way you also create traffic to your site. Thanks for sharing, and "lets go"!
I love your videos. Thank you!
Oh wow, found your calculator. I could hug your neck 🥰 Thank you so much. You are absolutely AWESOME!!
Thank you for all your super hard work.
🙏🏼
Also try this one ... th-cam.com/video/QfaVmEl1uyg/w-d-xo.html
Thank you so much! Great teacher.
Thank you so much for sharing this!
Thank you so much. You are amazing ❗️
Great video, thanks.
Which is very great to make that now well done
Thanks for this valuable info
Thank you for all the information... definitely will be going through all your videos!! Looking to start up next spring... I will be picking your brain 🧠 at some point 😊
OMG this is exactly what I needed! thank you so much for explaining it so well...for us newbies.😄
that's why she didn't count that $914 to get the exact cost per mile which she got a $2.77 net rate per mile
Thanks 🙏 so much for making this 👍🏽super super helpful
You are the Best ❤
Thank you 🙏
THANK YOU FOR YOUR HELP.
Made it very simple thanks
Start up for business and the attachment would be
AWESOME !
Rio
MUY BIEN EXPLICADO GRACIAS
Great video ma’am
great video, i was looking for the difference of cpm and rpm.Thanks
Honest chad here, im 18 years old already working towards getting my box truck. This is the best teacher I've had, and the best looking one 😎
Save the file as a Google sheet and share the link in the description. Thanks for the great vids and info
Very nice job explaining. And your handwriting was excellent 👌👍
thank you so much! so helpful
All praise to THE MOST HIGH! ❤️
Thanks so much for making these videos! Is the calculator still available in excel form?
Great video
Thank you for sharing.
Good explanation
You are amazing thank you
well explained!
I'm getting in position to get my authority.. and the fact that I found your channel gives me the confidence to go for it
Hey quick question. What stops most owner operators from getting their own authority and just manage and run their own loads and make that extra money they would be paying to a dispatcher or whatever?
Hi guys. Thanks for your help with uploading this file so it can be shared. The link is in the description. My apologies for it looking strange- I made it in Numbers and saved as excel, but it works the same. Just make sure you move the page to the right to see all the cells! 💛
I am 🥰
You have a new subscriber!! Thanks for all your help!!
Hello, thank you for this valuable info! Is it possible this can be in excel format just as the “Simple Interest Calculator” format is ?
Thank you in advance!
Hey cool video and very informative but are those number for a box truck or semi?
Well I know I am not a savvy tech person but I looked in the description for your cost per mile work sheet and don't see it if you could send it to my email that would be so helpful. THANK 🙏🏿
I am not a dispatcher yet but will be training for logistics manager soon so I am learning alot from your videos
Try this also ... th-cam.com/video/QfaVmEl1uyg/w-d-xo.html
Thank you so much!
Your dope 🥴 not selfish at all sharing detail by detail very understandable too thank you for the information
Super helpful
Great video. New subscriber
Great video and info!! can you possibly do a video one day about the tools that you use to show the graphs and the tinder read and explain how do you come to looking at those and how to use those tools? Thank you.
Try this ... th-cam.com/video/QfaVmEl1uyg/w-d-xo.html
Interesting. Well done. Thanks. I don't see anything about amortization of the cost of the vehicle or depreciation of the vehicle. Those are major costs.
Good video
9:27 Convert the Excel page to XML then show the XML text data on screen. If one knows how they can OCR a copy of the text from the screen and pull it into Excel. Another way is to use the free Google Cloud storage to upload a copy of the Excel file to, then post the link to download it. Now you can share documents without attaching them to TH-cam.
You can take the creanshot and share on TH-cam post. Instead doing the short fo the post . And add the screenshot . Great video
Thanks for the Helpful video. I had a couple thoughts as I’m considering starting my own business soon. If you’re forecasting your mileage based on averages driven each month, or using actual miles driven as in this example (for July you averaged ~370 miles per day), the cost per mile-albeit useful info-is not as relevant when trying to decide what type of loads (and how much gross revenue) you need to book each week. If you’re just starting out, isn’t it better to just calculate all of your fixed costs, and include a conservative estimate of your variable costs and divide those total expenses by the # of days in a month (eg. 30 or 31) to get your daily avg cost of running the business? At that point you can then figure out how much $$ you need to make per day (or per week) to ensure your profit margins are healthy.
So in your example, coming into July (or any month if you’re starting out brand new) you could determine your daily costs of operation: $9800/31 days = $316.13 day to operate the business. That’s $2,212.90 per week in total operational expenses. I think a healthy revenue target is 3X expenses. So I’d target ~$6,638 in weekly gross revenue. Once I had a couple months worth of actual data to analyze then I could see how using cost per mile going forward would be useful when booking future loads. But as a new owner operator I’m thinking that creating a target weekly revenue goal and/or profit margin goal (ie. 60%-70%) is just as helpful. The bottom line is if you want to be profitable long term and grow, you must “know your numbers!”
I think this is a great view point for someone starting out with no data to determine what loads they should and shouldn’t take based on their projected weekly income 👍🏾
Excellent video! You might be able to have your spreadsheet available on your website.
Yes I would love to have a spreadsheet like that
Those were good times....we were "walking in high cotton" and didn't realize it. When times are good like that, you have to "stack that paper" for the hard times/ lean times....that will inevitably always come at some point.
Thank u I got it
Great video but i have one question.
In your example listing monthly expenses for July 2021, your 2290 expense is listed as $550, but you say this is a yearly expense. This $550 should be shown as $45.83 as a monthly expense. This will then dramatically change your other calculations
Wow you have Great Handwriting✅🏆
Good morning, love your channel. I have a question I am new to all this so hopefully, my question dont sound stupid. I thought the 2290 was a yearly payment not monthly?
hello Im trying to use the calculator but I cant change the numbers, appreciate any help. love the info that you give
thank you
I love ur vidios
Hi Miranda. Do you have a video on how to create a spreadsheet for the business ? Thank you
Is there a shipping cost advantage for local farmers?
• Watsonville, CA to Cincinnati, OH
• 2,455 miles @$6,000 for 40,000 pints (lbs)
• Back haul provided
B
• Springfield, KY to Cincy
• 157 miles, no back haul (so x2)
• Refrigerated truck (VERY cheap at $0.85/mile)
• 6 hours driving labor @$15/hour
• 2,160 pints (lbs)
Thanks!
Thank you! :)
This is a good explanation but i know you are missing a few numbers in this cost per mile. Maintenance the standard is 10 cents per mile for a solo driver. Which for the miles that owner ran is nearly double what you spent. I think its great your cost is 469 for Maintenance however most people need to be saving that extra amount for future breakdowns. No truck payment in this cost analysis. Again its great if your truck is paid off but you still want to be sticking at least 1500 per month back for a downpayment on your next truck and that should be included with your cpm
GooDay, Thank You,
Like your channel---
This one, however, overlooked some things. I divided 2022 expenses, including driver wage, by total miles. It cost me $2.46 per mile.
You left out truck payments. Even if you own the truck free and clear, it will need to be replaced eventually, either one part at a time or all at once, which means that calculations need to include truck payments.
Don't forget tires, brakes, oil, fuel additive, and for a while fuel was $5.00 per gallon. At 5 gallons per mile, that's $1.00 per mile just for fuel.
I'd like to see a thorough cost breakdown.
Further, fixed expenses spread over 100,000 miles vs. 50,000 miles renders completely different costs per mile. $10,000 fixed expenses are 10 cents per mile or 20 cents per mile, depending on how many miles were driven.
An annual calculation would be more accurate.
By the way, an independent must not figure driver wage as part of the profit. If he put on another truck or had to hire a driver, he better have income to cover that.
I enjoyed the video. Although what about payroll and workers comp for employees? These 2 costs alone will kill a company if not added to calculations. Also, I feel if the actual CPM is below $ 4 per mile you are not doing yourself or the trucking community justice. Keep up the good work. Ty
I haul reefer and I do multi stop loads, how do u negotiate the best rate in this type of hauling?
Hello, I enjoyed your segment. Can you please provide me with an exported Excel link to that calculator?
So I have a good handle on my fixed cost let me know if I’m right. I’m estimating my truck payment, trailer payment, and back office annual filings etc will put me around 6k a month. If I estimate that I’ll run 9000 miles a month I’d just take 6000 and divide that by 9000 and I’d get my CPM for fixed cost correct? 6000/9000= .67 cents.
And to get a rough estimate for fuel at a basic term if gas is 4.5$ a gallon and if I get 6 miles a gallon I’ll divide 4.5 by 6 and get .75 cents. So as of now .75 + .67 will put me at 1.42 right? So every load I take that’s over 1.42$ will be profit for the month correct?
One question: How would we decide what RPM we should negotiate for when you just opened a brand new trucking company with zero data on costs? (great vid btw, thank you)
An average market rate would be ideal to start negotiations.
I really liked the video , new subscriber here, really would like to get a hold of that chart you made , looks professional and In depth.. have you figured out how to post it yet ?
Send me an email I'll send you the calculator! talkabouttrucking@gmail.com
I'm new to this and starting with Hotshot Trucking. My question is does this calculation you explained differ in any way with Hotshot?
How do I calculate sales tax/franchise tax? Can you talk a little bit about that? I have not been adding any tax to the agreed rate with broker, was I supposed to do that? I'm in Texas
Hello,
Regarding your desire to share your cost calculator I would suggest a link in the description to your companies web site and have the file available to download on your web site.
Hi i have a question, your calculation is based on your gross for the month of July but how do you calculate your RPM if you’re just getting started?
The cpm calculator is it available to be shared yet??
Hi it is really nice video. But since it is one year ago so what is the cost per mile now in 2023 and what is net profit per mile.
I think some of this info may be a little off; 2290 & BOC are not monthly charges. They are annual costs last I know. If I'm reading this correct your monthly fixed aren't $950 a mo..
Do you have a cost figured up just say if the truck sat a month how much it costs just sitting everything ready to go?
I liked the video, however, there were some factors missing such as factoring, tires, food, office equipment, etc. Very informative though.
Does it matter if you do cost per mile by the week or month or does it really matter?