It's a Team's Life
Figuring Expenses Per Mile /Per Day
Write down your starting odometer at the first of the year, first of the month, or even first of the week if you want to micromanage. I figure our cost per mile monthly but the number I depend on the most is the cost per day for the previous year.
To figure cost per mile:
Miles Driven / Expenses
Not being an accountant the costs I use are what the business has actually spent and that include any money that left the account, bank fees, payroll, health insurance, fuel…. I do not figure in per diem as that did not come out of the bank account. Once I know my cost per mile it is easy to figure if a load pays enough to take or not.
To figure cost per day:
The same principle, take how many per diem days and divide that by expenses. The cost per day is important to know. The load may pay enough to cover your cost per mile but did the load pay enough to cover your cost per day to be out here? Think of the short loads that might pay $20.00 a mile but they are only ten miles. This load would be well in excess of your cost per mile but if the load is taken at the wrong time of day will it put you out of contention for a load that would not only cover your cost per mile but your cost per day?
Bob & Linda Caffee
Saint Louis MO
Expediters since January 2005
Expediting isn't just trucking, it's a lifestyle;
Expediting isn't just a lifestyle, it's an adventure;
Expediting isn't just an adventure, it's a job;
Expediting isn't just a job, it's a business.