Short answer: Add up everything your truck costs in a month, fixed and variable, and divide by the miles you drove that month. That’s your cost per mile. Then divide your total cost by your loaded miles to see the lowest rate per mile you can accept without losing money. Any load below that number costs you money, however good it looks on the board.
Cost per mile = (monthly fixed costs + monthly variable costs) ÷ total miles driven in the month
Use real numbers from your bank statements, fuel card and settlement sheets — not guesses. Three months averaged together gives a better picture than one good or bad month.
Fixed costs are what you pay whether the truck moves or sits.
| Fixed cost | Where to find it |
|---|---|
| Truck and trailer payments or lease | Loan or lease statement |
| Insurance (liability, cargo, physical damage) | Monthly premium or annual premium ÷ 12 |
| Permits, IRP plates, IFTA, UCR, HVUT (Form 2290) | Annual cost ÷ 12 |
| ELD, phone, load board and software subscriptions | Monthly bills |
| Parking, accounting, business licences | Monthly bills or annual ÷ 12 |
Variable costs go up the more you drive.
| Variable cost | How to work it out per mile |
|---|---|
| Fuel | Diesel price per gallon ÷ your real miles per gallon |
| Maintenance and repairs | Last 12 months of shop bills ÷ miles driven |
| Tires | Cost of a set ÷ miles you expect from it |
| Tolls, scales, lumpers you aren’t reimbursed for | Monthly total ÷ miles driven |
Dispatch fees and factoring fees are a percentage of revenue, not a cost per mile, so handle them in the rate step below.
These are example numbers to show the math. Use your own.
| Item | Monthly | Per mile (10,000 miles) |
|---|---|---|
| Truck payment | $2,500 | $4,200 ÷ 10,000 = $0.42 |
| Insurance | $1,200 | |
| Permits, plates, ELD | $300 | |
| Phone, accounting, other | $200 | |
| Fuel ($3.80/gal at 6.5 mpg) | — | $0.58 |
| Maintenance and tires | — | $0.20 |
| Tolls and other | — | $0.04 |
| Total cost per mile | $12,400 | $1.24 |
Brokers pay for loaded miles, but you pay for every mile, including deadhead. So spread your total cost over loaded miles only.
| Number | Example | Use it for |
|---|---|---|
| Cost per mile (all miles) | $1.24 | Tracking costs month to month |
| Break-even rate (loaded) | $1.54 | The floor: never go below it |
| Target rate (loaded) | $2.06 | What your dispatcher aims for on average |
Box truck or hotshot? The math is the same. Use your own costs and the 8% dispatch fee: divide by 0.92 instead of 0.95.
Your dispatcher books loads above your minimum rate per mile. A dispatcher calls you back within the hour, Mon–Fri.
Add your monthly fixed costs (truck payment, insurance, permits) and variable costs (fuel, maintenance, tires, tolls), then divide by the total miles you drove that month.
It’s the lowest rate per loaded mile that covers all your costs and fees. Divide your total monthly cost by your loaded miles, then divide by what you keep after your dispatch fee (0.95 for a 5% fee).
Work out cost per mile without it first, so you know your break-even. Then add the pay you want per mile to get your target rate.
Brokers only pay for loaded miles, but your truck costs money on every mile. Using loaded miles makes sure your rates also cover your deadhead.
Every month, and any time something big changes: a new truck payment, an insurance renewal or a jump in fuel prices.
No setup fee, no contract, no forced dispatch. 5% for tractor-trailers, 8% for box trucks and hotshots.