One of the most common mistakes new trucking company owners and owner-operators make is underestimating the true cost of running a truck. You might see a $3,000 load and think you’ve just made a huge profit — but until you calculate your cost-per-mile, you don’t really know if you’re profitable.
Understanding your cost per mile is the foundation of running a successful trucking business. Without it, you risk accepting loads that look good on paper but actually lose money once all expenses are factored in.
Cost per mile is simply how much it costs you to run your truck for every mile driven. It includes fixed costs (like insurance and truck payments) and variable costs (like fuel and maintenance).
The formula is:
Total Expenses ÷ Total Miles Driven = Cost Per Mile
Example: If you spend $12,000 in a month and drive 10,000 miles, your cost per mile is $1.20.
Breaking Down the Costs
To calculate accurately, let’s look at the major expense categories:
1. Truck and Trailer Payments
- Lease or finance payments are often your largest fixed cost.
- Average truck payment: $1,500–$3,500/month
- Trailer payment: $500–$1,200/month
2. Fuel
- Fuel is typically your biggest variable cost.
- Depending on miles, MPG, and diesel prices, fuel can cost $50,000–$75,000 per year.
3. Insurance
- New authorities often pay the highest premiums.
- Liability, cargo, bobtail, and physical damage add up to $9,000–$16,000 per year.
4. Maintenance and Repairs
- Oil changes, tires, brakes, roadside repairs.
- Expect $12,000–$20,000 per year, more for older trucks.
5. Permits and Licensing
- IRP plates, IFTA, UCR, and other compliance fees.
- Around $1,500–$3,000 annually.
6. Tolls and Parking
- Tolls: $1,000–$4,000/year depending on routes.
- Parking fees: increasingly common in busy regions.
7. Other Costs
- DEF fluid: $600–$1,200/year
- Roadside assistance: $300–$600/year
- Truck washes: $400–$1,000/year
Why Knowing Your Cost Per Mile Matters
Without knowing your cost per mile, you’re guessing when negotiating rates. A broker may offer you $2.00 per mile, but if your cost per mile is $1.95, that load only nets you $0.05 profit — and one breakdown could erase it completely.
When you know your exact number, you can:
- Avoid taking unprofitable loads.
- Negotiate from a position of strength.
- Plan for growth and reinvestment.
Common Mistakes New Trucking Companies Make
- Only looking at gross revenue: “I made $200,000 this year!” — but did you? After costs, your take-home may be much smaller.
- Forgetting fixed costs: Even when your truck is parked, expenses like insurance and payments keep rolling.
- Not tracking miles correctly: Deadhead miles (empty miles) must be included. If you only track loaded miles, your numbers will be inaccurate.
Final Thoughts
Running a trucking company without knowing your cost per mile is like driving blind. It’s not enough to stay busy — you need to stay profitable.
👉 At Trucking Academy, we provide a Cost Per Mile Calculator and full financial management training inside our course, so you can track expenses, understand your true operating costs, and make smarter business decisions.
Don’t guess your profitability.
Take control of your numbers before they take control of you.