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Profit Per Mile: The Metric That Actually Matters

8 min read

Every owner-operator knows their rate per mile. But rate per mile is just revenue. It tells you nothing about whether you're actually making money. The metric that matters is profit per mile, and most truckers don't calculate it.

Let's change that.

Revenue vs. Profit

Say you get a load paying $3.00 per mile. Sounds good. But if your costs are $2.50 per mile, you're only making $0.50 in profit. Take another load at $2.75 per mile with costs of $2.00, and you're making $0.75 profit.

The "worse" rate was actually the better load.

This is why profit per mile matters. It accounts for the reality that not all miles cost the same to run.

Calculating Your Cost Per Mile

Your cost per mile is all your operating expenses divided by miles driven. The tricky part is knowing what to include.

Fixed Costs (Monthly)

Truck payment or lease
Insurance (liability, cargo, physical damage)
Permits and licenses
Health insurance (if self-paid)
Phone and technology subscriptions
Parking and storage

Variable Costs (Per Mile)

Fuel
Maintenance and repairs
Tires
Tolls
Lumper fees
Scale tickets

The Formula

Take your total expenses for a period (monthly is easiest) and divide by total miles.

Cost Per Mile = Total Expenses ÷ Total Miles

Example: $15,000 in monthly expenses ÷ 10,000 miles = $1.50 cost per mile.

Now Calculate Profit Per Mile

Once you know your cost per mile, profit is simple:

Profit Per Mile = Revenue Per Mile - Cost Per Mile

Using our numbers: If you average $2.50 revenue per mile with $1.50 in costs, your profit per mile is $1.00.

But here's where it gets interesting. Your cost per mile isn't constant.

Loaded vs. Deadhead Miles

Revenue only comes from loaded miles. But you pay for every mile you drive, loaded or not. Deadhead miles kill your profit per mile.

A load paying $3.00/mile for 500 miles sounds great. But if you drive 200 deadhead miles to pick it up, your effective rate drops:

$1,500 revenue ÷ 700 total miles = $2.14/mile effective

Always calculate loads including deadhead. That "$3.00/mile load" might actually be worse than a "$2.50/mile load" that's 20 miles away.

What's a Good Profit Per Mile?

It depends on your situation, but here are rough benchmarks:

$0.25-0.50: Surviving, but barely
$0.50-0.75: Making a living
$0.75-1.00: Doing well
$1.00+: Excellent

These numbers assume you're running consistent miles. If you're running fewer miles, you need higher profit per mile to make the same income.

Using Profit Per Mile to Make Decisions

Once you know your numbers, you can make smarter decisions:

Load Selection

Compare loads by profit per mile, not rate. A shorter, lower-paying load with minimal deadhead often beats a longer, higher-paying load with significant deadhead.

Route Planning

Some lanes have consistently better rates. Some regions have more backhauls. Track your profit per mile by lane to identify your most profitable routes.

When to Say No

If a load pays below your cost per mile (including deadhead), you're literally paying to haul it. Knowing your numbers lets you confidently turn down bad loads.

Expense Reduction

Every dollar you cut from expenses goes straight to your profit per mile. Knowing which expenses are eating your margin helps you prioritize what to reduce.

Tracking Over Time

Your profit per mile will fluctuate. Fuel prices change. Rates change. Repairs happen. What matters is the trend.

Track your profit per mile monthly and quarterly. Look for patterns:

Which months are most profitable?
Which lanes consistently perform?
What happens to your margin when fuel spikes?

The data will tell you what's working and what isn't.

How Fifth Wheel Helps

Fifth Wheel calculates your profit per mile automatically. Log your trips and expenses, and we do the math. You see your numbers in real-time, not weeks later when you're reconciling receipts.

We break it down by trip, by lane, by time period. You can compare loads before accepting them and track your margin over time.

No spreadsheets. No guesswork. Just the numbers you need to run your business.

Summary

Rate per mile is vanity. Profit per mile is sanity.

Know your costs. Calculate every load including deadhead. Track over time. Make decisions based on profit, not revenue.

It's the difference between running a truck and running a business.

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