How to Calculate Cost Per Mile

Part of being a successful truck driver or owner-operator is knowing how to calculate cost per mile (CPM). If you want to improve your chance of success, understanding your operating cost per mile helps you plan smarter and protect yourself and your business.

Even if you’ve never analyzed your CPM before, don’t worry. Here’s our step-by-step guide on how to calculate cost per mile for your business and how it’s essential to your profitability.

Step 1: Calculate Your Monthly Miles

Your odometer is the easiest way to help you figure out how many miles you drive each month.

How to calculate:
1. Record your odometer reading at the start and the end of the month.
2. Subtract the starting number from the ending number.

An example from TruckStop: If your mileage was 67,426 at the beginning of the month, and 75,968 at the end of the month, here’s what you would calculate: 75,968 – 67,426 = 8,542 miles.

Step 2: Identity Your Fixed Costs

Fixed costs are expenses you pay no matter how many (or little) miles you drive. These usually include loan payments, insurance premiums, licensing, registration, and permit fees.

How to calculate:
1. List your monthly fixed costs.
2. Add to get your total.
3. Divide the total fixed costs by your total miles of that month.

To figure out your cost per mile, you need to know the monthly total amount you spend each month on all your fixed costs.

Step 3: Track Your Variable Costs

Operators must consider the growth of variable costs over time based on how often and how far you drive, which can fluctuate from month to month. These variable items include fuel, tires, maintenance and repairs, as well as tolls, food and other on-road expenses. 

How to calculate:
1. Add up all variable expenses for the month.
2. Divide that by total miles driven that month.

Reviewing your truck’s average MPG helps you estimate how many miles you’ll be able to cover each month based on what you plan to spend on fuel. Plus, it gives you a clearer idea of what your monthly operating expenses will look like.

Step 4: Add for Your Total Cost Per Mile

Fixed Cost + Variable Costs = Total Expenses. Next, divide the total expenses by your total number of miles.

Knowing your cost per mile helps you:
1. Identify if your budget covers your expenses.
2. Estimate your annual earnings.
3. Spot areas where you can cut costs, if needed.

If your cost per mile seems high, look for ways to reduce costs like having a routine maintenance schedule, reducing idle time, and using Kenworth’s smart tech features.

Why Cost Per Mile Analysis Matters

With fuel prices fluctuating and operating expenses rising, doing a cost per mile analysis is essential to the growth of your business.

But you don’t have to do it alone! When you finance your next truck with Coopersburg & Liberty Kenworth, our team can:

• Help you estimate costs based on truck specs, fuel efficiency features, and expected maintenance schedule.
• Bundle parts, accessories, and service into your financing to spread costs over time.
• Explore flexible financing options that can lower your monthly fixed costs.

By understanding and tracking your truck’s cost per mile, you’ll not only keep your business profitable, but you’ll be ready to handle whatever the road (and market changes) brings in 2026 and beyond.