Questions on Figuring Expenses

Discussion in 'Ask An Owner Operator' started by fld, Jan 4, 2014.

  1. fld

    fld Medium Load Member

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    Nov 24, 2012
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    Okay, I am putting my plan together. I want to make sure that I am looking at this correctly and I have not missed anything. These expenses are for being leased on. I am waiting for insurance numbers for authority, but more than likely I will be leased on first. I do have 10 + years experience, repair, fuel, start up money, etc. No truck payments, parking fees, etc. I am planning on pulling rail containers (I know, I know, but I really need to be at home now). My main question is about figuring the cost of operating. Here is how I have figured it:

    FIXED EXPENSES:

    Collision/ Comp/ Bobtail 113/ mo 28.25/ wk
    Tag/ Registration 125/ mo 31.25/ wk
    Heavy Use Tax 46/ mo 12.00/ wk
    Accounting 25/ mo 6.25/ wk
    Occupational Ins 160/ mo 40.00/ wk

    TOTAL FIXED EXPENSES 117.75/ wk




    VARIABLE EXPENSES:

    Fuel .76 cpm (figuring 5mpg @ 3.79 gal- current Pa fuel price)
    Tires .03 cpm
    Maintenance .12 cpm


    TOTAL VARIABLE EXPENSE: .91 CPM




    WHAT IS NOT FIGURED:

    Tolls (must be included in original rate)
    Legal Fees
    Fines
    Road Tax (I am guessing at $100/ yr- if this is the main amount that I am off by, I am ok with that)
    State and Local Tax
    Misc


    So I am figuring this at 91 cpm plus weekly cost of 117.75/ wk or $23.55/ day

    If I was paid $2/ mile for 2,000 miles (purely used as an example) that would work out to be:

    $4,000 gross- $1,520 fuel (.76 x 2,000)= $2,480

    $2,480- 117.75 (fixed expenses) = 2,362.25

    $2,362.25 - 30% (30% self employment tax) = $2,362.25- 708.68 = $1,653.57 net (gross - fuel - fixed expenses - tax)

    $1,653.57- 300 (.15cpm tires and maintenance x 2,000 miles) = $1353.57 take home (future expense put away, but you are taxed on this as income)


    Is this the correct way to figure income? Is there a better way to figure the expense?


    I have learned so much from this forum, and I look forward to continued learning. Any constructive advice will be greatly appreciated. Thank you in advance.
     
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  3. FourCircles

    FourCircles Bobtail Member

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    Aug 1, 2012
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    Hey there FLD. There is another post that may help you a bit here. Higb posted a blog with a good breakdown. I'll link you to the forum post to for you to compare to. You could add cell expense since it will be for work. Trailer rent or less % on lease if not shown as a weekly rental fee. Then lease %. That will add up quickly. Just a few things.

    http://www.thetruckersreport.com/tr...rator/236696-small-fleet-expected-profit.html
     
    fld and Lady K Thank this.
  4. Higb

    Higb Light Load Member

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    Nov 24, 2009
    Augusta, GA
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    It's good to break things down to the week but still better to break it down to the day. But divide your year's expence to 250 working days. Allow yourself time off, time for repairs, and even though you have no truck payment plan on $18,000 a year for maintenance.

    As stated by the guy above I did do a blog this years breaking down each months expense but I also have a page called Cost to Operate somehow what ever you think things are going to cost you things seem to still run over.

    I'm an advocate fair pay. We sell ourselves short everyday. We as drivers are all to willing to put in 18 hours a day and accept $125-$150 profit. Then we have to eat and that cuts into our NET.
    I count in meals as my OTR expense to. Meals are a legit expense and they add up really fast even with a Microwave and Coffee pot. If you worked at a regular job you could just eat a $7 meal or brown sack it.

    I wanted to add I want to make $200 a day even if it's a 50 mile haul. If the load goes over 400 miles I start going up on my $200 I want $300 profit for a 500 mile haul that I con complete that day or empty off first thing the next morning. and $400 for a 600 mile haul. Just beause the haul is 600 miles don't mean your done in 10 hours even though that's all we "show" it took. In reality most 600 mile hauls go into 16 hours or longer buy the time you take a break, fuel, load so I think that equals more profit for the day just like a normal job would pay overtime. Were professionals and there is a shortage of driver willing to do what we do. Don't sell yourself short.

    ADVOCATE more pay. Even if your a company driver!!! Let's quit taking it up the arse.
     
    Last edited: Jan 4, 2014
    fld Thanks this.
  5. fld

    fld Medium Load Member

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    I knew you guys would steer me in the right direction!
     
  6. fld

    fld Medium Load Member

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    Nov 24, 2012
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    I checked out your blog, very interesting reading. I think that the real question for me is how do you track your expenses? Do you use a particular software? That's some impressive accounting!
     
  7. Higb

    Higb Light Load Member

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    Nov 24, 2009
    Augusta, GA
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    Microsoft Money Sunset. Is free, download your transactions from your bank just enter categories you want to track.

    Quickbooks will do the same but Microsoft Money Is more friendly to use.
    You can make it as complicated or easy as you want.
     
    Last edited: Jan 5, 2014
  8. Saddletramp1200

    Saddletramp1200 Road Train Member

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    Houston Texas,USA
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    Took me 3 days to buy a used truck. But I looked good doing it. Old driver truck. 115 mph. Got gears I don't need. But I like it. The stickers peel off as fast as their put on. I am about treating me right. heavy haul is like that. My tit is always in a ringer. I make things happen.
     
  9. FourCircles

    FourCircles Bobtail Member

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    Congratulations, Saddletramp. Your infinite knowledge will live in internet history. We thank you for such a gift from the heavens.
     
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