Free tool
Cost per mile calculator
Find what a mile costs you, and the rate per loaded mile you need just to break even. Empty miles are counted, because you pay for them too.
Result
Runs in your browser. Nothing you type is sent anywhere. Example numbers are invented (EXAMPLE VALUES). This is a calculator, not financial, tax or legal advice.
The formulas
cost per all mile = total monthly cost / total miles empty share = (total miles - loaded miles) / total miles break-even = total monthly cost / loaded miles target rate = break-even / (1 - target margin)
Break-even uses loaded miles because loaded miles are the ones that get paid. Cost per all mile is what the truck cost to run for every mile it turned a wheel, so it is the number to compare with revenue per all mile in your audit.
Worked example (invented)
A truck costs $21,720 in a month and drives 10,400 miles, of which 8,900 are loaded. Cost per all mile is $2.088. The empty share is 14.4%. Break-even per loaded mile is $2.440. With a 10% target margin the rate needed is $2.712 per loaded mile.
Mistakes that make the number too low
- Leaving out your own pay. If you drive, the truck should still pay you a driver wage.
- Counting only fuel and the truck payment. Insurance, tires and permits are real costs every month.
- Using loaded miles for the divisor of every cost. Fuel, tires and wear come from all miles, not only paid ones.
- Forgetting the reefer unit. Its fuel is separate from the tractor. It belongs on its own line.
- Using a quiet month. A month with a repair or a long wait distorts everything. Try three months side by side.
Next: turn this into a floor for each load with the minimum rate tool, or check one load with load profit.
Questions
Should I include overhead like the office and software?
If you want the break-even for the whole business, yes: put them in "Everything else". If you want the cost of running only the truck, leave them out. Be consistent from month to month.
Why does the tool show three decimals?
Rates per mile are small numbers, and a tenth of a cent times 100,000 miles is real money. Dollar totals are rounded to the cent. The math is done in exact decimals, not floating point.
Is this a market rate?
No. It uses only your own numbers. We do not publish market rates or live freight rates.
Formula table
| Quantity | Formula | Note |
|---|---|---|
| Cost per all mile | total monthly cost / total miles | Every mile driven, loaded or empty. |
| Empty share | (total miles - loaded miles) / total miles | Share of miles that earn nothing. |
| Break-even per loaded mile | total monthly cost / loaded miles | Only loaded miles are paid. |
| Rate with target margin | break-even / (1 - margin) | Margin is a share of revenue. |
| Cost of empty miles | (total - loaded miles) x cost per all mile | Shown as the hidden number. |
What this means for you
The number under the headline is what the truck costs to run per mile. The gap between that and the rate per loaded mile is the empty-mile tax. If your rates are quoted per loaded mile, compare them with the break-even per loaded mile, not with the cost per all mile.
Run it again with last quarter's costs. A cost that crept up while rates stayed flat is the usual first leak.
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See what your last 20 loads show.
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