Institute of
Transport
Policy Certifications Tools Data About
Back to Tools

Cost Per Mile (CPM)

If you don't know your exact CPM, you are subsidizing your shippers. Use this calculator to define fixed and variable costs, establishing the absolute floor rate you can accept before running at a loss.

Assumptions & Baseline

Total loaded + empty miles.

Fixed Monthly Costs

Costs incurred regardless of whether the truck moves.

Variable Per-Mile Costs

Maintenance funds set aside for every mile driven.

Include yourself if owner-op.

Operating Margins

Fixed Cost Per Mile $0.00
Fuel Cost Per Mile $0.00
Variable Cost Per Mile $0.00
Total Cost Per Mile (Breakeven) $0.00

Taking freight below this rate means you are paying out of pocket to run the truck.

Target Rate (+15% Margin) $0.00

Methodology & Assumptions

Calculating accurate Cost Per Mile (CPM) is the foundation of freight pricing. Spot rates fluctuate based on market capacity, but your operational costs dictate viability.

1. Fixed Costs vs. Variable Costs

Fixed Costs exist regardless of utilization. The only way to lower your Fixed Cost Per Mile is to drive more miles. Variable Costs scale directly with mileage. Setting aside maintenance reserves (usually $0.15-$0.20/mile for a newer truck) is critical; deferred maintenance creates catastrophic operational failure.

2. The Driver Pay Trap

Owner-operators frequently fail to include a distinct per-mile salary for themselves, conflating truck profit with driver wage. If you do not calculate $0.60-$0.80/mile for driver pay, you are working for free and the truck is taking all the revenue.