cost per mile to remain profitable

Discussion in 'Questions From New Drivers' started by trucker_lady80, Sep 14, 2020.

  1. trucker_lady80

    trucker_lady80 Bobtail Member

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    Hello All,

    I am still new and learning so please excuse any ignorant questions.

    I am researching how to calculate my trucking company (Dully and 40 trailer) cost per mile so I can know my number to remain profitable or atleast breakeven monthly.

    Few questions:

    1. Should I include my living expenses such as house rent, house bills, day care, food, care note, etc. in the cost per mile calculation as well along with operating cost to run my trucking business?

    2. I currently do not know my total mileage I will be driving per month. Currently, i see every example as 10K miles, should I wait a few months before calculating cost per mile?

    3. When I am determine if a rate make logical sense, should I include the milage coming and going back home

    For example, if my cost per mileage is about $1.7. Today I had a load for $400 from Houston to Louisiana (275 miles). 550 mile round trip. I drove back home empty trailer or deadhead. So the actual rate for the load today was $0.73.

    This means I lost money today, right?

    Thanks
     
    Last edited: Sep 14, 2020
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  3. JonJon78

    JonJon78 Road Train Member

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    You should figure in the wage you pay yourself not rent, daycare, and everything else you listed.
    .. Keep your business expenses separate from personal...
     
  4. trucker_lady80

    trucker_lady80 Bobtail Member

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    Thank you so much JonJon78,

    The salary I calculate for myself (not including my truck driver) is $4000 (or $48K per year). Truck driver is $5000 per month.

    So should I include $4000 and the $5000 in the cost per mile calculation?

    Thank you,
     
  5. Razorwyr

    Razorwyr Road Train Member

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    If I understand correctly, you're doing hotshot. If so, its hard enough to take home $9k (yours plus drivers) every month in a big truck after expenses, im not sure that number is going to leave you much wiggle room for any problems. However, to answer your question, yes, you would calculate all $9k in the per mile rate because both are business expenses. You do not count anything you pay out of your $4k
     
  6. JoeTruck

    JoeTruck Light Load Member

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    Your salary and your driver's salary are business expenses.
    Salary@ $9,000
    Fuel@ 10,000 miles@ 10 mpg is 1,000 gallons@ 2.25 a gallon is$2,250
    Insurance $1,000
    Truck and trailer payments $1,500
    Maintenance@ $500
    These are just a few rough numbers.
     
  7. trucker_lady80

    trucker_lady80 Bobtail Member

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    Thank you so much JoeTruck,

    I will include salaries in the cost per mile calculation. So many examples on the internet does not cover salaries in the cost per mile calculation.
     
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  8. trucker_lady80

    trucker_lady80 Bobtail Member

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    Hello Razorwyr,

    Thanks for the information. Yes, I am doing hotshot. Thank you that makes sense to me to include the $9K salary in the cost per mile rate.

    Thank you
     
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  9. JoeTruck

    JoeTruck Light Load Member

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    In trucking the people who make the most are the ones who are in the right place at the right time and that's not just luck.
    Shippers will pay more if the load needs to get there fast.
    Find the lanes that pay best going in and going out in your area of the country and establish a relationship with those shippers.
    You don't want to deadhead 300 miles to the next load.
     
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  10. trucker_lady80

    trucker_lady80 Bobtail Member

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    Thank you SOOO much JoeTruck,

    For the past week, I have been deadhead 300 miles coming back home. I can find a load going, but nothing coming back.

    When I am determine if a rate make logical sense, should I include the milage coming and going back home

    For example, if my cost per mileage is about $1.7. Today I had a load for $400 from Houston to Louisiana (275 miles). 550 mile round trip. I drove back home empty trailer or deadhead. So the actual rate for the load today was $0.73.

    This means I lost money today, right?
     
    truckdriver31 and LtlAnonymous Thank this.
  11. JoeTruck

    JoeTruck Light Load Member

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    Some expenses are fixed, like insurance and truck/trailer payment. So today your fuel and if you paid the driver for the extra 275 must be added in.
    You must plan on what your truck will do next. If it is deadhead back home than figure in the cost of fuel and driver.
    If you have good paying load going to Louisiana take it and find anything going home just to cover your expenses.
    Houston is a good place to hotshot, it's just going to cost you some time and money to learn the ropes.
     
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