Calculating gross to the truck

Still not enough info, I assume the "70%" is just his cut of the line haul, and there should be a FSC(fuel surcharge) in addition to that. That would equate to $1.44+fuel, that's not too bad, not great, but not bad. I am also assuming that since he is getting 70%, that he is actually a "power only lease operator" (that has a truck leased to a carrier and pulls their freight around in their trailer) as opposed to a "true owner operator"(that not only owns a truck but also owns/maintains/and insures his own trailer, and finds/bids on/and insures his own freight). "Lucrative" is an opinion, and my idea of lucrative is probably going to be different than yours. If you want to know if it is profitable, then you first have to know what your operating cost per mile is. Just to make the math easy if the truck ran 3000 miles last week, and burned $2000.00 in fuel, your cost per mile is 0.665 cpm. That is for fuel only. But if you throw in an oil change ($275.00) now you are up to 0.76 cpm. If he has a flat on the way back and has a road service ($500.00) now you are up to $0.83 cpm, if he had the flat on the way home after getting the oil changed it goes up to $0.93 cpm. There are way to many variables for one of us to say what is profitable for you. You have to figure truck payment, insurance, plates all maintenance costs, everything. Once you have that $ figure, divide it by however many miles he ran, and that will give you your cost per mile to operate the truck.(break even) A man a whole lot smarter than I will ever be started this thread http://www.thetruckersreport.com/tr...forum/222195-so-you-just-leased-truck-eh.html and should be mandatory reading BEFORE anyone buys or leases a truck for the first time. But the education in there is priceless.

 

For an owner / operator, it's all about averages. $1.44 / mile for a legal load out of Florida to Nashville, TN is a decent rate, IMO - PROVIDED that you can back that up with a return load that will allow you to average better than $2.00/mile gross to the truck. That's assuming that you're willing to accept a net pay to the driver of around $0.30/mile.

Having said that, it all depends on your operating costs. What are your operating costs (don't forget to split out daily fixed costs as well)?

 

is the fuel surcharge with the the gross? reason I asked is I get a percentage of the linehaul rate and 100% of the fsc that the company charges. an average linehaul rate for a 700 mile run for me is about 2000 which I get my percentage of then I add the fsc to get my gross to truck which usually puts me right about what they say the linehaul is.

 

Some of our loads have FSC added in to the rate and some have a separate rate. One always has to know if the FSC if part of the rate or a separate amount. Some brokers have the FSC separate and others don't. Gross to the truck would be whatever the income is BEFORE any expenses, and net would be after expenses have been subtracted, as has been mentioned. The way our lease is arranged, the full freight rate plus FSC is our gross, and then the brokerage/trailer fees are subtracted. We get 80% of the gross, and 100% of any FSC that is separate from the freight rate.

 

So it sounds like he is taking the option of having a fixed fuel cost vs. FSC.

 

http://www.ooida.com/EducationTools/Tools/costpermile.asp

Go to the bottom of the page and you can download a spreadsheet that will help. There are several other resources as well.