Cost Per Mile (CPM)

Total operating cost divided by total miles, used to determine profitability and set rate floors.

Cost per mile aggregates fixed costs (truck payment, insurance, permits) and variable costs (fuel, maintenance, tires, driver pay) and divides by total miles driven. Owner-operators typically run $1.50–$2.00/mi all-in; small fleets average $1.80–$2.20/mi.

How it is calculated

CPM = (Fixed Costs + Variable Costs) / Total Miles

Example

Monthly costs of $18,000 over 9,000 miles equals a CPM of $2.00. Any load below $2.00/mi loses money.