The cost per mile formula
Cost per mile = fixed cost per mile + variable cost per mile
Fixed cost per mile = fixed costs per year ÷ total miles per year
Fixed costs are paid whether the truck rolls or not: truck and trailer payments, insurance, plates and permits, the heavy vehicle use tax (HVUT), ELD and software, accounting. Variable costs grow with every mile: fuel, maintenance and repairs, tires, tolls and driver pay. Work with a full year, because some costs come monthly and others once a year.
Fixed costs per mile
The truck payment is $2,650 a month, the trailer $650 and insurance $1,400. That is $4,700 a month, or $56,400 a year. Add $4,200 for plates, permits, HVUT and IFTA filing, $2,400 for the ELD, load boards and software and $3,600 for accounting, parking and admin: $66,600 of fixed costs a year.
Spread over 115,000 miles, that is $0.579 a mile. The divisor matters: if the truck only runs 95,000 miles, the same fixed costs come to $0.701 a mile and the total CPM rises to $2.723. A truck that sits costs money, which is why fixed cost per mile is the number that rewards good utilisation.
Variable costs per mile, with 2026 fuel prices
Fuel cost per mile = diesel price ÷ miles per gallon. Diesel was unusually expensive in autumn 2026: the US average on-highway price in the EIA's weekly survey was still above $6 a gallon in early October. The example uses $6.20: at 6.8 mpg that is $0.912 a mile, about 35% of the total cost per mile. Every $0.50 change in the diesel price moves the CPM by 7.4 cents, or about $8,456 a year at 115,000 miles. That is the reason most contracts include a fuel surcharge.
The other variable costs in the example are close to industry averages. ATRI's 2026 report on the operational costs of trucking, covering 2025, puts repair and maintenance at 21.5 cents a mile, tires at 5 cents and tolls at 4.3 cents, with an all-in average of $2.336 a mile across fleets. Driver pay is $0.82 a mile here. Fleets that also pay benefits averaged about $1.03 a mile for wages and benefits combined.
Drive the truck yourself? Still put a driver wage in the sheet. Otherwise you cannot tell whether the truck earns money or whether you are simply working for free.
Total cost per mile
Variable costs add up to $2.022 a mile, fixed costs to $0.579. The total cost per mile is $2.601, or $299,102.94 for the year. This is the cost of every mile the truck drives, loaded or empty.
Worked example: cost per mile and break-even rate for one truck
Inputs in yellow, results as formulas. The costs are realistic for a one-truck operation in 2026 but illustrative: put in your own payments, insurance quote and fuel economy.
| A | B | Formula in B | |
|---|---|---|---|
| 1 | Truck 1, 2026 plan | USD | |
| 2 | Truck payment (per month) | 2,650.00 | |
| 3 | Trailer payment (per month) | 650.00 | |
| 4 | Insurance (per month) | 1,400.00 | |
| 5 | Permits, plates, HVUT & IFTA (per year) | 4,200.00 | |
| 6 | ELD, load boards & software (per year) | 2,400.00 | |
| 7 | Accounting, parking & admin (per year) | 3,600.00 | |
| 8 | Fixed costs per year | 66,600.00 | =(B2+B3+B4)*12+B5+B6+B7 |
| 9 | Diesel price ($ per gallon) | 6.20 | |
| 10 | Fuel economy (miles per gallon) | 6.8 | |
| 11 | Fuel cost per mile | 0.912 | =B9/B10 |
| 12 | Maintenance & repairs per mile | 0.200 | |
| 13 | Tires per mile | 0.050 | |
| 14 | Tolls & miscellaneous per mile | 0.040 | |
| 15 | Driver pay per mile | 0.820 | |
| 16 | Variable cost per mile | 2.022 | =SUM(B11:B15) |
| 17 | Total miles per year (loaded + empty) | 115,000 | |
| 18 | Fixed cost per mile | 0.579 | =B8/B17 |
| 19 | Total cost per mile (CPM) | 2.601 | =B16+B18 |
| 20 | Total cost per year | 299,102.94 | =B19*B17 |
| 21 | Deadhead (% of total miles) | 14% | |
| 22 | Loaded (paid) miles per year | 98,900 | =B17*(1-B21) |
| 23 | Break-even rate per loaded mile | 3.024 | =B20/B22 |
| 24 | Target profit per year | 25,000.00 | |
| 25 | Rate per loaded mile for the target | 3.277 | =(B20+B24)/B22 |
Diesel prices change every week. Check the current US average in the EIA's weekly Gasoline and Diesel Fuel Update and update B9. This guide is educational, not financial advice.
Deadhead and the break-even rate per loaded mile
Brokers and shippers pay for loaded miles only. The empty miles to the next pickup, called deadhead, cost fuel, wear and driver time but bring in nothing. With 14% deadhead, only 98,900 of the 115,000 miles are paid, so each loaded mile has to carry the cost of the empty ones:
Break-even rate per loaded mile = total cost per year ÷ loaded miles
That is $299,102.94 ÷ 98,900 = $3.024, not $2.601. To also earn a $25,000 profit, the truck needs $3.277 per loaded mile. Any load offered below the break-even rate, counting the deadhead to reach it, loses money. The same logic as a general break-even analysis applies: fixed costs first, then every mile above break-even adds profit.
Common mistakes
- Dividing by loaded miles only when you calculate CPM. Costs run on every mile. Calculate CPM on total miles, then convert to a rate per loaded mile.
- Forgetting the driver. An owner-operator who leaves out their own pay sees a profit that is really just their wage.
- Using last year's fuel price. Fuel is the most volatile line. Update it often, or the CPM is wrong within weeks.
- Comparing loads on the posted rate per mile. A short load at a high rate can earn less than a long haul once the deadhead to pick it up is counted.
- Ignoring irregular costs. Tires, a major repair or the annual HVUT do not arrive every month. Spread them over the year as a reserve per mile.
- Planning with optimistic miles. Fixed cost per mile depends on the miles you actually run. Use a realistic figure, not the best month.
Frequently asked questions
How do you calculate cost per mile for a truck?
Add up all fixed costs for a year, divide them by the total miles driven, loaded and empty, and add the variable costs per mile: fuel, maintenance, tires, tolls and driver pay.
What is the average cost per mile for a semi truck?
ATRI's 2026 report put the 2025 industry average at $2.336 a mile including fuel. With diesel well above $6 a gallon in autumn 2026, many carriers are running higher. Your own number can differ a lot, so calculate it.
How does deadhead affect cost per mile?
Deadhead does not change the cost of a mile, but it reduces the miles you are paid for. The break-even rate per loaded mile is the total cost divided by loaded miles, so 14 percent deadhead raises it by about 16 percent.
What rate per mile do I need to break even?
Divide your total yearly cost by the loaded miles you expect to run. In the example that is $3.024 per loaded mile. Add your target profit to the costs to get the rate you should quote.