Running a trucking business is more than just hitting the road and hauling freight—it’s about making every mile count. Whether you're an owner-operator or managing a fleet, understanding your cost per mile is essential for long-term success.
Every expense, from fuel and maintenance to insurance and permits, adds up. But without a clear breakdown of these costs, you might be underpricing your services, losing money on hauls, or missing opportunities to boost your profitability.
In this guide, we'll walk you through how to calculate your cost per mile, what expenses to consider, and why having this number at your fingertips can make or break your business. By the end, you'll have a solid understanding of what it truly costs to keep your truck moving—and how to set rates that keep you profitable.
Understanding some of the costs in trucking
Starting a trucking business is more than just buying a truck, bidding on loads and setting your own hours. You need to consider every expense that goes into doing anything for your business. The more granular you can be with organizing your expenses the better chance you have of finding loads that will meet the goals you set for your company.
Ideally you want to account for as many of these expenses as possible even if you are able to do much of these tasks yourself in the early days of your company. By not working to factor these costs into your calculations you can restrict growing your company over time.
Let's take a look at some of the major areas of expense for a trucking company.
Vehicle Acquisition & Financing
Vehicle acquisition and financing costs are one of the biggest fixed expenses in a trucking business. Whether you're buying, leasing, or financing a truck and trailer, these costs directly impact your profitability, cash flow and cost per mile.
A new semi-truck can cost anywhere from $150,000 to $200,000, while a trailer can add another $30,000 to $80,000. Whether you finance, lease, or buy outright, these costs need to be accounted for over the lifespan of the vehicle.
For a financed or leased vehicle, use the monthly payment and divide it by the miles driven in that month:
For an owned vehicle, account for depreciation by dividing the purchase price minus salvage value over its expected mileage:
This ensures each mile contributes to covering the vehicle's cost. Including acquisition costs in CPM helps you set rates that recover investments, plan for replacements, and maintain profitability. Ignoring this cost can lead to underpricing and financial losses.
Insurance & Licensing
Truck and trailer insurance is a critical fixed cost that every trucking company must account for when calculating cost per mile. It’s not just an expense—it’s a legal requirement and a financial safety net that protects your business from unexpected losses
Trucking businesses are legally required to carry commercial truck insurance, including liability, cargo, and physical damage coverage. Without it, you can’t operate legally, and many shippers and brokers won’t work with you unless you have adequate coverage.
Insurance premiums can range from $8,000 to $20,000+ per year per truck, depending on factors like driving history, coverage levels, and operating region. Since this cost must be paid whether you haul one load or a hundred, it must be spread across the miles you drive to determine your true cost per mile.
Some other licensing cost that trucking companies typically run into are:
IFTA - The International Fuel Tax Agreement ensures truckers pay fuel taxes based on miles driven in each participating jurisdiction, not just where fuel is purchased. Since fuel is one of the biggest variable costs in trucking, accurately tracking IFTA taxes helps determine your true cost per mile.
IRP - International Registration Plan is a cooperative agreement among U.S. states, Canadian provinces, and jurisdictions to distribute registration fees based on the miles a commercial vehicle travels in each region. It ensures truckers only need one license plate and one registration, while paying fees proportionally to where they operate.
Truck and trailer registrations - The cost to register a commercial truck varies significantly depending on the state, the truck's gross vehicle weight rating (GVWR), and whether it operates intrastate or interstate, but generally ranges from a few hundred dollars for lighter trucks to over a thousand dollars for heavier vehicles with interstate operations.
Fuel & Fluids
Fuel is the largest variable expense in trucking, often making up 30-40% of total operating costs. Since fuel prices fluctuate due to market conditions, failing to track it can lead to miscalculating your true cost per mile and underpricing loads.
To easily account for fuel costs, truckers should track fuel purchases, total miles driven, and average miles per gallon (MPG). A simple formula to estimate fuel cost per mile is:
Using fuel tracking apps, spreadsheets, or fleet management software can automate this process, ensuring accuracy. Planning fuel purchases in states with lower fuel tax rates, following fuel saving tips and using fuel discount programs can also help reduce costs.
Fuel economy is also driven by a trucks gross weight as well. The heavier a load is the more energy (fuel) is needed to move it. Making sure you know how much you will be hauling can help get the best cost per mile for you calculations.
Some of the other fluids you want to keep track of that are frequently needed are:
- DEF
- Engine Oil
- Coolant
- Grease
Maintenance & Repairs
Maintenance and repairs are essential operating costs that directly impact a truck’s reliability, lifespan, and overall profitability. Unexpected breakdowns can lead to expensive repairs, lost revenue, and downtime, making it crucial to track these costs in a cost per mile (CPM) calculation.
Regular maintenance, like oil changes, tire replacements, and brake servicing, prevents costly failures and ensures compliance with safety regulations. Tracking maintenance costs helps truckers budget for repairs, avoid cash flow issues, and plan for major overhauls like engine rebuilds.
A simple way to account for these costs is to calculate total maintenance expenses over a set period and divide by miles driven.
A simple formula for calculating these cost in your calculation is:
By including maintenance and repair costs in the cost per mile calculation, truckers can set profitable rates, avoid financial surprises, and extend the life of their equipment. Ignoring these expenses can lead to underpricing loads, unexpected breakdowns, and reduced long-term profitability.
Having a good preventative maintenance program set up will help you identify potential issues while they are small and allow you to fix them before the turn into bigger problems for your company.
Some important maintenance and repair related cost to keep track of include:
- Routine maintenance
- Oil changes
- Tire replacements
- Brake services
- Filters belts hoses
- Major Repairs
- Engine overhauls
- Transmission repairs
- Annual estimate for major repairs
- Tires
Tolls & Road Expenses
Tolls and road expenses can significantly impact a trucking company’s operating costs, especially for routes that rely on toll roads, bridges, or tunnels. These costs vary by location, vehicle weight, and number of axles, making them unpredictable if not tracked properly.
Failing to account for tolls in a cost per mile (CPM) calculation can lead to underpricing loads, reducing profitability. Tracking these expenses allows truckers to adjust pricing, plan more cost-effective routes, and budget accurately.
Using toll transponders, fuel cards, or trucking apps can help automate toll tracking and expense reporting. Some businesses pass toll costs to customers, but without proper tracking, they risk absorbing unnecessary expenses.
Some common road cost that drivers typical face are:
- Tolls
- Truck scale cost
- Parking
- Road usage tax
Labor & Payroll
Labor and payroll are major fixed and variable expenses in a trucking business, including driver wages, benefits, payroll taxes, and bonuses. To accurately calculate cost per mile (CPM), total labor expenses must be divided by the miles driven.
The formula is:
For company drivers, this includes hourly wages or salary, overtime, and benefits like health insurance and retirement contributions. For owner-operators, labor cost is the amount you pay yourself based on a desired income goal.
Tracking labor costs ensures profitable load pricing and helps determine if hiring more drivers or increasing pay is financially sustainable. Using payroll software or accounting tools can simplify tracking and ensure accurate cost per mile calculations.
By including labor in cost per mile, trucking businesses can set competitive rates, maintain profitability, and plan for future workforce needs.
Administrative & Overhead
Administrative and overhead costs include non-operational expenses required to run the business, such as office rent, utilities, software, and professional services. These costs must be factored into cost per mile (CPM) to ensure total expenses are covered.
The formula is:
Major costs to consider include:
- Office Expenses: Rent, utilities, internet, and phone services.
- Software Subscriptions: Accounting software, load boards, fleet management tools, ELD and dash camera solutions.
- Professional Services: Accounting, legal, and consulting fees.
- Employee Overhead: Dispatchers, safety teams, office staff salaries, and benefits.
- Compliance Costs: Safety programs, drug testing, and regulatory fees.
Tracking these expenses ensures a realistic cost per mile calculation, enabling businesses to set profitable rates, manage cash flow, and scale operations effectively. Ignoring overhead can lead to undervalued pricing and financial strain.
Some common administrative and operational related cost to keep track of include:
- Office rent or home office expenses
- Utilities (internet, phone, electricity, etc.)
- Software subscriptions (e.g., load boards, accounting software)
- Accounting/bookkeeping
- legal services
- ELD subscriptions
- Dash cameras
- Dispatch services
- telematics/fleet management
Miscellaneous Costs
Finally, you should add as many small miscellaneous cost to your cost per mile calculations. These cost are typically minor expenses that go along with being a truck driver. Some of these cost include:
- Parking Fees: Costs for overnight parking at truck stops or monthly yard rentals.
- Lumper Fees: Payments to unloaders at delivery locations (if not reimbursed).
- Permits: Temporary permits for oversized loads or special routes.
- Communication Costs: Cell phone bills and CB radio expenses for business use.
- Meals and Travel: Per diem allowances or out-of-pocket meal expenses while on the road.
- Safety Equipment: Costs for cones, locks, vests, or other safety-related tools.
- Bank or Credit Card Fees: Interest on business credit cards or financing charges.
- Marketing Expenses: Costs for websites, business cards, or advertising.
- Miscellaneous Supplies: Cleaning products, truck tools, or minor consumables (e.g., gloves, straps).
Including these smaller costs ensures your cost per mile (CPM) is comprehensive, preventing hidden expenses from eating into your profits
