Owner-operator cost per mile: worked examples
Cost per mile is fuel, maintenance, tires and anything else that grows with miles, plus your fixed monthly costs spread over the miles you drive. These tables show how much each piece moves the answer.
The formula
Cost per mile = fuel price / MPG + maintenance per mile + tires per mile + other variable per mile + fixed monthly costs / miles per month.
Worked example
Fuel $4.00 a gallon, 6.5 MPG, maintenance $0.15 and tires $0.05 per mile, $3,000 fixed per month, 10,000 miles per month. Fuel is 4.00 / 6.5 = $0.6154. Fixed is 3,000 / 10,000 = $0.30. Total: 0.6154 + 0.15 + 0.05 + 0.30 = $1.12 per mile. At a $2.00 a mile rate, profit is $0.88 a mile, or $8,846 a month.
Fuel cost per mile by price and MPG
| Fuel price | 5.5 MPG | 6.5 MPG | 7.5 MPG |
|---|---|---|---|
| $3.50 | $0.64 | $0.54 | $0.47 |
| $4.00 | $0.73 | $0.62 | $0.53 |
| $4.50 | $0.82 | $0.69 | $0.60 |
| $5.00 | $0.91 | $0.77 | $0.67 |
Fixed cost per mile by monthly miles (fixed costs $3,000)
| Miles per month | Fixed cost per mile | All-in cost per mile |
|---|---|---|
| 6,000 | $0.50 | $1.32 |
| 8,000 | $0.38 | $1.19 |
| 10,000 | $0.30 | $1.12 |
| 12,000 | $0.25 | $1.07 |
All-in uses $4.00 fuel, 6.5 MPG, $0.15 maintenance and $0.05 tires per mile.
Questions
What belongs in fixed costs?
Truck payment, insurance, permits, trailer or equipment lease, phone and anything else you pay each month no matter how many miles you drive.
Why does more mileage lower cost per mile?
Fixed costs are spread over more miles. In the last table, the same $3,000 a month costs $0.50 a mile at 6,000 miles and $0.25 a mile at 12,000.
Is this tax advice?
No. It is a planning aid. Your tax treatment of costs is for your tax professional.
Use it on your own numbers
Numbers on this page are calculated by formula when the site is built and are planning aids, not tax or engineering advice. How we check.