Your cost per mile (CPM) is the total cost of running your truck divided by the miles it actually ran. The formula itself is simple:
Cost per mile = total operating cost ÷ total miles, over the same period.
The hard part is deciding what belongs in the numerator. This guide walks through the categories, a complete hypothetical example, and the mistakes that make carriers trust a number that is not real.
Fixed vs. variable costs
Separate costs by whether they change with miles.
Fixed costs happen whether the truck moves or not:
- Truck payment or lease
- Insurance (liability, physical damage, cargo)
- Plates, permits, and regulatory costs such as IFTA and UCR filings
- Base phone, software, and load board subscriptions
Variable costs grow with miles:
- Fuel
- Tires (part of a per-mile reserve, not one big bill)
- Repairs and scheduled maintenance
- Tolls and scale fees
Some costs sit in between. Insurance premiums are paid monthly, but exposure rises with miles. Maintenance happens in lumps, but wear is per mile. The practical solution is to reserve per mile for maintenance and tires, and to treat insurance and the truck payment as fixed.
Loaded miles vs. total miles
CPM is only useful on an all-mile basis: every mile the truck runs, including deadhead. If you divide costs by loaded miles only, you hide the cost of repositioning and empty moves — and you will accept loads that do not actually cover your costs.
A worked example (hypothetical numbers)
Assume one month of operation for a dry van owner-operator. All figures are invented for illustration; use your own numbers.
| Cost category | Monthly amount |
|---|---|
| Fuel (8,600 miles at 6.5 mpg, $3.60/gal) | $4,763 |
| Truck payment | $2,200 |
| Insurance | $1,400 |
| Maintenance reserve ($0.08/mi) | $688 |
| Tolls and parking | $250 |
| Phone, software, load boards | $159 |
| Total | $9,460 |
CPM = $9,460 ÷ 8,600 miles = $1.10 per mile.
That means a load that pays $2.20 per all mile covers the truck and leaves $1.10 per mile before profit, driver pay, and your own time.
Common mistakes
- Dividing by loaded miles only. Deadhead miles still burn fuel and tires. Use total miles.
- Counting gross revenue as profit. Revenue minus all operating costs is what remains.
- Forgetting irregular costs. Annual insurance lump sums, IFTA quarterly payments, and the next tire set are real money. Turn them into monthly or per-mile reserves.
- Borrowing someone else's number. Industry averages are starting points. Your truck, lanes, and contracts are what matter.
Put your own numbers in
The True Cost-per-Mile Calculator walks through fixed and variable costs and produces your all-mile CPM. Then use it in the Load Profitability Calculator to judge individual loads against your real cost.
If your CPM surprises you, that is normal — most carriers find the number is higher than they assumed. Knowing it is the first step toward negotiating and choosing loads that actually pay.
This article is for general education only and is not financial, tax, or legal advice. Worked examples use hypothetical figures.