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Learn how to calculate trucking cost per mile and determine your truck operating cost using the Truckers Cost Per Mile Calculator from the Truckers Trip Planning App.
As a Leased Operator or Owner Operator you need to know your trucks operating cost in order to select profitable loads. This should be the first step that you take when you first purchase and download the Truckers Trip Planning App.
Once you set up the #TruckersCostPerMileCalculator, it will be available for all future loads and you will only need to add and make changes as they become necessary.
The Truckers Cost Per Mile Calculator opens with the Total miles or kilometers set to 100,000 and the salary percentage set to 30%. This is just an average to use based upon a yearly operating cost preference. You can change this information to meet your preference.
To calculate trucking cost per mile for your trucking business, you will need to have available, your settlement statements, all associated #fixedcost and #variablecost expenses, and of course the #totalmilesdriven during the period in which you intend to calculate your truck operating cost per mile. The overall objective is to determine the minimum rate per mile that you can accept when selecting your loads to either achieve a break even point or to earn a profit with the load.
How To Calculate Trucking Cost Per Mile Using The Truckers Cost Per Mile Calculator From The Truckers Trip Planning App.
On the workflow page of the App, open the Truckers Cost Per Mile Calculator by tapping on the icon on the left.
Make your decision as to whether you want to calculate your operating cost based on weekly, monthly, or yearly miles driven.
Enter the total miles you drove during the period in which you selected.
Determine what percentage of the total vehicle cost you want to add as a personal salary. This is separate from the actual cost of operating your truck and can be adjusted as you monitor your #successmetrics and make adjustments to increase your #loadprofitability which will be discussed in a future post.
Enter the decimal value of your salary percent into the box provided.
Make a determination from your settlement statements which of your expenses are fixed cost and those expenses which are variable cost. Fixed cost are those cost in which you will have to pay regardless if the wheels on your truck are turning and variable cost are those cost that you have an option to pay or avoid paying by choosing alternatives. Examples of Fixed Cost are truck payments, health insurance, physical damage insurance, trailer rental, base plates and permits, Accounting, and such things that you would have to pay even if you do not run any loads. Examples of variable cost are tolls, scales, internet, fuel, diesel exhaust fluid, and such things that you will only need if the wheels are turning and such things that you can avoid purchasing if you so choose to do so.
Based on your decision to calculate trucking cost per mile on either a weekly, monthly, or yearly basis, enter your fixed cost and the amount of the recurring cost into the fixed cost section of the Truckers Cost Per Mile Calculator and clicking on the "+" to add lines for each entry. The cents per mile, the total fixed cost, and the fixed cost per mile or kilometer will be automatically calculated based upon your recurring cost. While you update your fixed cost, the Truckers Cost Per Mile Calculator will also build a chart that you can view later to see which of your fixed cost should be consistently monitored.
Based on your decision to calculate trucking cost per mile on either a weekly, monthly, or yearly basis, enter your variable cost and the amount of the recurring cost into the variable cost section of the Truckers Cost Per Mile Calculator and clicking on the "+" to add lines for each entry. The cents per mile, the total variable cost, and the variable cost per mile or kilometer will be automatically calculated based upon your recurring cost. While you update your variable cost, the Truckers Cost Per Mile Calculator will also build a chart that you can view later to see which of your variable cost should be consistently monitored.
After you have completely updated your fixed and variable cost, scroll to the bottom of the Truckers Cost Per Mile Calculator to see the truck cost per mile or kilometer, the salary cost per mile or kilometer, and the operating cost per mile or kilometer which was also calculated as you updated your fixed and variable cost. Notice that the operating cost per mile or kilometer is a combination of the truck cost per mile or kilometer and the salary cost per mile or kilometer. The operating cost per mile or kilometer is the minimum rate in which a load should pay for you to achieve a break even point. Any thing above that amount would help you to achieve a business profit. Any thing below that amount would cause you to achieve a business loss.
You can now close the Truckers Cost Per Mile Calculator and return to the workflow page of the Truckers Trip Planning App to begin planning your loads.
Get Access to the Truckers Trip Planning App and calculate trucking cost per mile for your truck today.