FleetCare Group Inc

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Understanding how much it costs to maintain your truck is the most important financial calculation you can make for your trucking business. But many drivers and owner-operators don't keep track of it. Don't be one of them! In this post, we'll detail the calculation.

Calculate the cost per mile using this formula:

Total Cost/Total Miles = Total Cost per Mile.

To calculate this, you'll need information from previous trips:

Receipts for meals, fuel, lodging and other expenses for the previous month.
A list of monthly payments, such as truck fees, permits, and insurance
Odometer readings for the first and last day of the previous month.

1️⃣ Calculate how many miles you have to drive.
The odometer information will help you determine how many miles you'll drive in a given month, whether it's paid or not. Use this formula:

End of month odometer reading - Start of month odometer reading = Total miles

2️⃣ Calculate your fixed costs.
Your expenses are divided into fixed costs, variable costs, and payroll costs.

Fixed costs, or fixed costs, are what you pay each month whether you drive 10 miles, 1,500 miles, or not at all. These include: Truck fees, insurance, license plates, permits

3️⃣ Calculate variable costs.
Variable costs or expenses depend on how often and how far you drive. These include: Fuel costs, meals, brokerage fees, repairs and maintenance, lodging Tires.

4️⃣ Determine payroll expenses.
Payroll expenses can include wages, fees, benefits and employment taxes. If you pay yourself $4,500 a month, this is your payroll expense.

5️⃣ Calculate the cost per mile,
Using the numbers above, let's calculate the cost per mile. First, calculate the total cost by adding up the fixed costs, variable costs, and payroll costs:
For example, $2,265 + $3,950 + $4,200 = $10,415.

Then divide the total cost by the total number of miles, e.g., 7,253.

$10,415/ 7,253 = $1.43 - уour cost per mile.