Variable Expenses Per Mile Trucker Stats™

At some point, we truckers are going to ask ourselves two questions: “How much did we make on these loads?” and “How much did we spend on these loads?”

Why those numbers? Because variable expenses per mile give us some important information to improve our trucking business.

What are Variable Expenses?

Variable expense per mile = Total variable expenses ÷ Total miles

If you spend $7,500 in variable expenses while traveling 5,000 miles, your variable expense per mile is $1.50.

Variable expenses are those costs that change per trip.

Fuel and DEF
Tolls
Scale fees
Lumper fees
Truck washes
Parking
Permits for specific trips or loads
Driver pay based on miles, loads, or percentage
Factoring and transaction fees
Brokerage or dispatch fees based on revenue.

Probably you have a good idea what your variable expenses are for your most common trips. Might be fuel, might be lumper fees, might be reefer fuel. Those expenses fluctuate. Trying to track them can be tedious because you just can’t predict when they’re going to show up.

Why do we want to know this number? Because it helps us understand part of what it costs to operate a truck.

Fixed Expenses are Easier to Predict

Fixed expenses generally remain consistent regardless of how many miles you drive or loads you haul. Examples include truck payments, office rent, subscriptions, and insurance.

Look at your credit card or checkbook and you’ll know what your fixed expenses are. You see them come up every month.

It’s hard to make those change. Those expenses just don’t change without effort. We might find a different insurance company. We might pay off a loan. But fixed expenses don’t often change. Trying to save money on fixed expenses isn’t easy.

That’s not to say don’t try. Switching from an expensive accounting software package that doesn’t do all the work of TruckingOffice PRO will save you money when IFTA and IRP come around. You won’t have to pay extra for those filings to be created. TruckingOffice PRO already does them.

Variable Expense per Mile vs. Revenue per Mile

Revenue per mile shows how much a load earns per mile. Variable expense per mile shows how much operating expenses change with mileage, loads, and equipment use. To determine whether the business made a profit, you must also account for fixed expenses.

Why Variable Expense per Mile Matters

Tracking revenue is what we get paid for the trip. Divide that by the number of miles for the load, and you have Revenue Per Mile.

Figuring out other “per mile” statistics can be a lot harder. But that’s how we’re paid, so that’s the number we need. How much does it cost to run your vehicle per mile? How much do your variable operating expenses cost per mile?

TruckingOffice PRO has the formulas you need to find that answer. You don’t have to depend on guesswork with TruckingOffice PRO trucking management software.

Trucker Stats™ help you understand your per mile numbers. The best thing about TruckingOffice PRO is that you don’t have to enter the data again and again. Once you enter your dispatch and the expenses paid, TruckingOffice PRO will compute your variable expenses per mile for you in seconds. When the decision of what to bid on a load has to be made right away, TruckingOffice PRO tells you what you need to know to make a profitable move.

FAQs

What are variable expenses in trucking?

Variable expenses are costs that change with mileage, loads, routes, or equipment use. Examples include fuel, tolls, lumper fees, parking, and mileage-based driver pay.

How do you calculate variable expense per mile?

Divide your total variable expenses by the total miles traveled during the same period. $\text{Variable expense per mile} = \text{Total variable expenses} \div \text{Total miles}$

What is the difference between variable expense per mile and total cost per mile?

Variable expense per mile includes only costs that fluctuate with operations. Total cost per mile includes both variable expenses and fixed expenses, such as insurance and truck payments.

Use TruckingOffice PRO to Know Your Worth

Trucking has taken it on the chin this year. Truckers are stuck in an insane economy where businesses think that they can cut corners by reducing their shipping costs. But when you know your value, you know what you must have to make a profit. TruckingOffice PRO gives you the numbers you need to evaluate profitability.

We’ll even let you find out for yourself. Use our free trial and enter your data for the past quarter. Then you can