Understanding Cost-Per-Mile: The Metric That Matters

Many new owner-operators look at a load paying $2.00 a mile and think they're rich. But if your truck costs $1.80 a mile to run, you're working for free.

You must calculate your Fixed Costs (insurance, truck payment, permits) and your Variable Costs (fuel, tires, maintenance, food). Divide that by the miles you run.

If your CPM is $1.50, that is your "break-even" floor. You never take a load below that number unless it's to get out of a dead market. Knowing this number gives you the power to say "no" to cheap freight and negotiate better rates. Stop guessing and start accounting.