How much is my operating cost per mile?

In order to calculate your operating costs per mile, you need to either know how many miles you will be driving or do an estimate. It is reasonable to assume you can average 2,500 miles per week for a year. There are 30 days in a month, so that should make it easy to calculate your cost per mile for fixed costs, such as insurance. You also need to find the average cost per gallon for fuel in the area in which you will be running or just use the national average. If fuel is selling at $2.50/gallon and you average 5 mpg, then your fuel costs will be $0.50/mile just for fuel. If your insurance costs $1,000/month then using an average of 2,500 miles per week, your insurance costs will run approximately $0.10/mile. A couple of expenses most don't consider are pm's and tires in their calculations. I use $0.025/mile for pm's and $0.05/mile for tires. I will let you do the rest of the calculations.

 

In addition to what was mentioned by others:

I used to think we paid our drivers a base rate of $.34. Then I saw the tax slips at the end of the year so I worked it out. It was over $.50. Don't forget workers comp, employment ins, employee pension, health benefits, vacation pay, holiday pay, safety and performance bonuses, Christmas bonus, cell phone, lawyers, accounts payable......

Also, don't forget legal fees, accounting fees, meals etc etc etc in your overhead.

 

On the topic of tolls, I'm curious how folks estimate how much their tolls will be before running a trip? I've never really done it as a company driver, especially since the trucks I've been driving all had EZ Pass... but now I've been asked by my boss to prepare some cost estimates for a few runs around the Northeast and I'm not sure how to calculate the tolls... I guess EZ Pass has spoiled me! Can anyone help with this question?

 

You hiring?

 

Yep but we run northeast based out of Ontario (not California).