How to calculate cost per mile for trucking
Cost per mile (CPM) is your total monthly cost divided by your total monthly miles. The trap is that three different numbers hide inside it — and brokers count on you not knowing them:
- Fixed CPM. Truck payment, trailer payment, insurance, plates & permits, ELD, parking — costs you pay even when parked. Divide the monthly total by your total miles. The fewer miles you run, the heavier each mile gets. See the full owner-operator expenses list.
- Variable CPM. Fuel (diesel price ÷ MPG), maintenance and tire money set aside per mile, tolls, and your own pay. These scale with every mile.
- Break-even per loaded mile. You pay costs on all miles but only invoice loaded ones. Divide your all-in CPM by (1 − deadhead %).
Worked example
Say your fixed costs are $8,000/month and you run 10,000 miles: fixed CPM = $0.80. Your variable costs add $1.05/mile. All-in CPM = $1.85. Now, if 12% of your miles are deadhead, you only invoice 8,800 loaded miles — so your break-even rate is $1.85 ÷ 0.88 = $2.10 per loaded mile. Quote below that and you are paying to work. (These are example numbers, not benchmarks — the calculator above uses yours.)
From break-even to a minimum rate
Break-even keeps the lights on; it doesn't build a business. Set a profit target (the slider above) and, if you factor invoices, include the factoring fee — both come off the top of gross revenue, so the formula is: minimum rate = break-even ÷ (1 − factoring % − profit %). That number is your walk-away line in any rate negotiation.
Want to sanity-check your inputs against published industry research? Read how much it costs to run a semi per mile — with sourced ATRI and OOIDA figures, not made-up averages.
Frequently asked questions
How do I calculate cost per mile for my truck?
Add up your fixed monthly costs (truck and trailer payments, insurance, plates and permits, ELD, parking) and divide by your total monthly miles. Then add your variable cost per mile: fuel (diesel price divided by your MPG), maintenance, tires, tolls, and your own pay. Fixed CPM plus variable CPM is your all-in cost per mile.
What is a good cost per mile for an owner-operator?
There is no universal good number — it depends on your truck payment, insurance, lanes, and fuel economy. For context, the American Transportation Research Institute (ATRI) reported the industry's average marginal cost at $2.260 per mile for 2024, but that is a fleet-weighted average, not an owner-operator benchmark. The number that matters is your own, calculated from your real expenses.
Why do deadhead miles raise my break-even rate?
You only get paid for loaded miles, but you pay costs on every mile. If your all-in cost is $1.85 per mile and 12% of your miles are empty, every loaded mile must also carry the cost of the empty ones: $1.85 divided by 0.88 is about $2.10 per loaded mile — your true break-even rate.
Should I include my own pay in my cost per mile?
Yes. If your rate only covers the truck, you are working for free. Set a per-mile wage for yourself and treat it as a real cost — a load that cannot pay both the truck and the driver is a losing load.
Does factoring count as a cost per mile?
Yes. A factoring fee is a percentage taken off your gross revenue on every invoice, so your rate has to cover costs after the fee. This calculator handles that correctly: break-even with factoring equals cost-based break-even divided by (1 minus the fee percentage).
Is this calculator free? Do I need to sign up?
Completely free, no signup, no download. It runs entirely in your browser — your numbers are saved on your own device and never sent anywhere. You can also copy a share link that carries your inputs.