A tool designed to determine the expenses incurred for each mile driven by an independent truck driver. This tool accounts for both fixed and variable operational expenses. For example, it incorporates costs such as fuel, maintenance, insurance, truck payments, and permits to provide a comprehensive expense calculation per mile. The resulting figure helps gauge profitability and informs rate negotiations.
The calculation of expenses on a per-mile basis is crucial for effective business management within the independent trucking industry. It enables owners to understand true operational costs, identify areas for potential savings, and ensure sustainable profitability. Historically, owner-operators relied on manual tracking and estimations, which often led to inaccuracies. Modern calculation methods provide greater precision, facilitating informed decision-making.
