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Independent Contractor | Owner-operator

[Video] Successfully Calculating Cost Per Mile

October 3rd, 2022

Samantha Dwyer

Samantha Dwyer

Samantha joined the Anderson Trucking Family in November of 2012 as a specialized driver manager and managed a fleet of mixed company and contractor drivers. In the spring of 2014, she transitioned to the driver administration department and began working in contractor services. While in contractor services, Samantha familiarized herself with all processes, procedures and information in regards to driver contracts, pay and settlements. She is currently the operations support manager and oversees both the contractor services department as well as the driver settlement department and leads both of her teams to ensure our drivers receive the highest level of service required to help navigate their accounts and settlements on a daily basis.

 

Not sure how to calculate your cost per mile (CPM)? Not sure how you can choose loads that will only make you profitable? By determining your fixed costs, your variable costs and your total miles driven for the month, you can calculate your cost per mile. 

I’ve been working with drivers on their settlements since 2012, and in this video I’ll explain more about how you can estimate your fixed costs, variable costs and miles driven. 

Fixed costs include: 

  • Truck payments
  • Insurance
  • Federal Highway Use Tax
  • Technology rentals
  • Accounting services

Variable costs include:

  • Maintenance account 
  • Fuel
  • Tolls 

You should calculate your CPM every month or so as the market fluctuates. Adjusting your CPM regularly will help you stay profitable. 

To get a good understanding of how the market works, check out this article about headhaul and backhaul markets.

 

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