How Do You Calculate Cost Per Mile

Stupid question from a newbie. Lol.

I read it on OOIDA but I am not getting it. Maybe I need a real word explanation. Can someone help me?

Thanks.

 

Add up all of your costs, then divide by number of miles.

 

Try to make $500 a day. Anything lower you are losing $$$. But like mention above.

 

Better solution might be to learn what lanes pay what rates for what commodities for what time of year and what rates to expect ...

For me, I change it up throughout the year, so my "cost per mile" changes ...

From about May to November I do shorter runs and do anywhere from 1800-2500 miles per week, which puts my fixed costs (monthly expenses not based upon how many miles I drive) at a higher rate than when I do my winter stuff (long haul - 2500-3500 miles/week).

I prefer to break it down differently and look at the bigger picture, typically quarter by quarter.
My fixed monthly expenses are a given number and must be paid for the month.
My truck-moving costs are only directly related to when the truck moves. Fuel, oil changes, repairs, tires. I pay myself a salary every month rather than a mileage pay.

The routes I run are regular business for the most part, I know what the ballpark figure of the gross I am going to earn for the run is. Much easier and still very profitable than running wild all over the place.

 

okay thanks guy, so what will you guys say is an acceptable cost per mile. Does anyone ever use this website? does it help?

http://www.fairtran.com/Rates.aspx

Thanks again.

 

Reefer rates look approximately accurate, at least for this week. Keep in mind it is probably calculating loaded mile rates, not including any deadheading. Still want a dry van? :smt077

 

Okay I need your guidance here drivers

If I have a load to deliver from Islip NY to Chicago for $1200 is that worth it when I deduct fuel cost and tolls? is there any way to know how much is the cost per mile since I am just starting and I cannot foresee my Total Annual Cost.

As a reference I will be leaving from Staten Island NY to Islip, NY (50 Mile) and then from Islip, NY to Chicago Illinois (840 Mile) does this make sense or should I stick to shorter hauls?

 

Yeah i am going to go with a dry van for now gokiddogo, hopefully if business picks up I will add a refer, don't want to finance a refer right now I want to buy a dry van cash so I wont have to worry about it. I saw a 2006 Stoughton 53x102, Air Ride, swing door for $9000. it looks like a good deal.

 

Try to always plan at least a few moves ahead. What will you do when you reach chicago? Have you posted your truck there in an effort to gather information of rates leaving Chicago to where you want to go next? That rate seems low to me, but then again I can't run freight within the usa anyway, but I have heard rates from east to west are generally low. I almost always load produce from the nj/pa ports back to ontario.

 

Well, you're making $1.35 a mile and that does not count your tolls, which are going to be fairly substantial plus the very expensive fuel you'll be buying in NY. So, I would say no, that is not a profitable load at all. I am pretty sure you can make similar money running within 200 - 400 miles of where you are, so I'd stick to that. We made more than that running from Carlisle, PA up to CT last week, well over $3 a mile, and I'm sure there are even better loads....best to find some of those.