How Do You Calculate Cost Per Mile

here you go.... www.youtube.com/watch?v=tGLs7g7RHo8

 

Sorry, but this is not good advice, $500 a day as long as he only drives about 200 miles a day, maybe? when I was still an O/O my bottom figure i would haul a load was $1.89 per mile, and that's not making much, like Grizzly stated, add up your cost, don't forget to add services and un-expected repairs, and some more for your pay, try and get yourself a minimum you need to make to stay above water, good luck

 

$1200 for 840 miles? not in my trailer!

 

Allow to me interrupt here. Don't take this the wrong way, just adding in my two pennies.
I dislike when people factor in mortgage, utility, food, car payment, etc etc "life bills" into their cost per mile.
I keep one account for personal one for business.
Not only does it keep everything from being Mixed up, but when Uncle Sam comes looking at you he will wondering why the two are mixing which is not good.

I like to keep my fixed cost and variables into a spreadsheet and look at them from time to time. Someone was generous enough to lead me to a template where I plugged in all my numbers and it gives me a cost per mile. Any less less than that and I'm doing the broker a favor pulling his load.
OOIDA has a template for spreadsheet for a cost per mile figure as well. That will give you a generic outlook on what your bills are.

 

You almost have to figure those in, or have them in mind when figuring your cost per mile. I don't list them as a separate line item and throw them in the mix, they are more or less figured into my profit.

I run everything out of one account, have since the day I started this, but I am a sole proprietor, in the governments eyes it makes no difference. If I was incorporated it would be a different story.

 

I'm not sure how someone could ever calculate their cost per mile without knowing how much they are spending all in?

In my model everything has to be accounted for- cost of living bills back home
maintenance
insurance
utilities
rent/mortgage
car payment
truck payment or if it is paid off, funding to purchase the next truck
retirement account
taxes

just everything added up then divided back into the projected yearly mileage the truck and business expect to produce. From there it can be broken down quarterly, monthly weekly or even daily and hourly.Any owner operator needs to know how much is going out and how much is coming in even if it isn't 'in' yet to know whether they are on a sinking ship or not.