Direct answer
Divide verified variable and fixed costs by all miles, including deadhead. The result is only as current as fuel price, utilization and cost inputs.
| Figure | Source |
|---|---|
| Numbers shown on this page | Fictional worked example; not a market benchmark |
| Formula and definitions | Serman Tools method stated on this page |
| Your quote or operating result | Your verified business inputs |
Separate variable and fixed cost
Fuel, maintenance reserve and tires usually move with miles. Truck payment, trailer payment, insurance and other fixed commitments continue even in a slow month. Tolls may be handled monthly or by trip, but should not appear in both places.
Use actual monthly miles including deadhead when allocating fixed cost. Using loaded miles alone hides the cost of repositioning and makes cost per mile look lower than it is.
Fictional monthly example
Assume 10,000 total miles, fuel at $3.80 per gallon, 7 MPG, $0.15 maintenance reserve, $0.04 tire reserve and $250 of monthly tolls. Variable cost is about $0.76 per mile.
If truck, trailer, insurance and other fixed costs total $5,590, fixed cost adds $0.56 per mile. The fictional true cost is therefore about $1.32 per total mile before owner taxes and costs not entered.
Translate cost into a load check
For one load, multiply true cost per mile by loaded plus deadhead miles. Add revenue-based fees and other trip costs once. Compare that total with linehaul and accessorial revenue.
Revenue per loaded mile remains useful for negotiation, but revenue per total mile is the cleaner comparison with an all-mile cost figure.
Break-even is not a market rate
A break-even number reflects the inputs and mileage assumptions entered. It does not predict available freight, detention, route feasibility or future fuel prices. A target margin can create a planning rate, but no calculator can make the market pay it.
Update the model when utilization changes
Fixed cost per mile rises when monthly miles fall. Recalculate after material changes in home time, equipment payment, insurance, fuel economy or deadhead share. Keep the old scenario for comparison instead of overwriting it without a note.
Frequently asked questions
Should deadhead miles be included?
Yes. Include deadhead in total miles for cost allocation and in each trip's total-mile check.
Can I add fuel to true cost per mile?
Only if fuel is not already included. Adding it twice overstates trip cost.
How often should cost per mile be updated?
Monthly is a practical cadence, and immediately after a large change in fuel, insurance, equipment or utilization.
Does the result include taxes?
No. The free tool is an operating-planning model and does not calculate personal or business taxes.
RUN THE NUMBERS
Use your own costs before you quote.
Start with the free True Cost Per Mile Calculator. The Owner Operator Profit Workbook keeps the related workflow in a downloadable workbook.
Planning and estimation only. No price, rate, revenue, profit or business outcome is guaranteed.