Whether you own and operate a single truck or a fleet, it’s important to note that you’re more than just a driver. You’re a business owner — responsible for every expenditure and every penny of income. To be successful, it’s vital to not only know your operating cost per mile (CPM) but also how to take control of it.
Owner-operators can reduce CPM through fuel efficiency, preventive maintenance and strategic backhaul planning.
First of all, you need to know the current average CPM.
According to the most recent data from the American Transportation Research Institute (ATRI), for-hire carriers have an average operating cost of $2.26 per mile ($1.27 per mile before driver wages and benefits) as of 2024. This breaks out into five major categories:
- Driver wages/benefits: $1 per mile (44%);
- Fuel and DEF: 60 to 70 cents per mile (27%-31%);
- Truck and trailer payments: 33 cents per mile (15%);
- Repairs and maintenance: 20 cents per mile (9%); and
- Insurance: 15 cents per mile (7%).
Of course, CPM will vary a bit by sector (truckload, less-than-truckload, refrigerated, flatbed, etc.), region, utilization, equipment age and financing strategy.
Some of these costs are variable, such as fuel, DEF, tires, tolls, repairs and maintenance. Others are fixed/time-based — truck/trailer lease or depreciation, insurance, permits and licenses, back office and overhead, and driver pay and benefits.
How to calculate Class 8 CPM
Use this basic formula to calculate your personal CPM: Total all operating costs for a specific period of time and divide that number by your total dispatched miles during that period.
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Add fixed and time-based costs for the period: These may include lease or loan payments, insurance, permits and licenses, ELD and other tech, office costs, etc.
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Add variable costs for the period: These may include fuel and DEF, tires, tolls, parking, equipment washing/cleaning, repair and maintenance.
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Divide by dispatched miles: Be sure to use either paid or all miles consistently — deadhead miles matter!
Here’s an example:
- Monthly fixed/time-based costs: $12,000
- Monthly variable costs: $18,000
- Total dispatched miles: $15,000
Total costs for the month equal $30,000. Divide 30,000 by 15,000 (miles driven) — and your average CPM for the month is $2.
What moves your CPM up or down?
There are several key factors that impact your CPM:
• Fuel price and miles per gallon (MPG)
Fuel is still a top driver — a 50 cents per gallon swing or a change of 1 MPG can move CPM meaningfully. For example, in 2023, industry CPM rose to $2.27 even as fuel prices eased, because non-fuel costs climbed.
• Driver wages and benefits
Competitive pay has structurally risen since the pandemic years, and benefits growth continued into 2024.
• Equipment costs and interest rates
Higher prices and financing costs have kept truck and trailer payments elevated.
• Maintenance and tires
Investing in newer equipment may lower repair and maintenance costs. Operating older equipment can cut equipment and interest rate costs — but raise shop time and parts.
• Utilization
More loaded miles and fewer empty miles spread fixed costs over more revenue miles, lowering CPM.
• Freight mix and geography
Refrigerated and flatbed equipment often carry higher costs in repair and maintenance as well as insurance. Operating in regions with heavy tolls quickly adds to CPM.
Owner-operator versus fleet CPM
Owner-operators can sometimes beat averages via tight cost control and high utilization, but face volatility (cash flow, repairs, insurance underwriting). Fleets benefit from scale pricing (fuel, tires, insurance) but carry overhead.
Across the industry, ATRI’s report shows CPM for 2024 averaged $2.26. In addition, operating margins were compressed, especially in the truckload sector.
10 proven ways to lower your CPM
The experts at TACH offer the following tips to lower your CPM:
- Improve your MPG through speed discipline, cruise control, aero and idle reduction.
- Spec smart: Opt for low-rolling-resistance tires and optimized axle ratios.
- Follow fuel network discipline: Buy on lane strategy — not just the price on the sign.
- Create a preventive maintenance cadence to avoid roadside breakdowns.
- Negotiate insurance costs through telematics, safety coaching and having a clean CSA.
- Finance strategically: Look at the total cost of ownership instead of just the lowest payment.
- Plan backhauls to trim deadhead miles.
- Review your lane and customer mix — tolls, dwell, appointment reliability.
- Practice data hygiene: Track your CPM weekly so you can spot anomalies early.
- Improve driver retention: Stable staffing reduces costs associated with recruiting, training and crash risk.
Frequently asked questions
According to the most recent data from ATRI, the average CPM for operating a Class 8 truck is $2.26. Is $2.26 profitable for trucking?
Profitability depends entirely on your revenue per mile (RPM) and utilization rate.
If your RPM consistently exceeds $2.26/mile with good loaded mile percentage (above 85%), you can be profitable. However, many truckload carriers faced margin pressure in 2024 with spot rates often below $2.00/mile. Contracted freight with rates above $2.50/mile typically provides sustainable margins.
Calculate your break-even RPM and target rates at least 15% to 20% above your CPM for healthy profitability.
Why do some articles and sources cite different CPM figures, like $2.25 or $2.27?
The year of the data matters significantly. According to ATRI’s annual studies, 2022 averaged $2.251/mile (a record at the time due to fuel spikes); 2023 was $2.27/mile (the highest ever); and 2024 came in at $2.26/mile (a slight decrease as fuel stabilized).
ATRI publishes updated figures annually based on comprehensive carrier surveys, so always check the study year when comparing CPM figures. Regional variations, fleet size and operational type (truckload versus less-than-truckload, reefer versus dry van, etc.), also cause CPM differences.
What’s the single biggest lever to reduce costs?
While driver compensation ($1/mile) and fuel (60-70 cents/mile) are the largest absolute costs, fuel efficiency offers the most controllable lever. Improving from 6 MPG to 7 MPG at $3.50/gallon for diesel reduces fuel cost by 9 cents/mile. Combined with reducing deadhead miles (targeting 90%+ loaded miles versus 80%) and preventive maintenance practices, owner-operators can realistically reduce CPM by 15-20 cents/mile compared to industry averages.
How often should I recalculate my CPM?
Calculate CPM monthly at minimum to track trends and identify cost anomalies early. Recalculate weekly during volatile fuel markets (when diesel swings more than 25 cents/gallon in a month) or when making operational changes like switching lanes, adding/changing equipment or adjusting driver pay structures.
Use consistent methodologies (always include/exclude the same cost categories) to ensure accurate period-over-period comparisons. Set up automated tracking in your accounting software or use TACH’s CPM dashboard for real-time monitoring.
TACH can help reduce your CPM
At TACH, we understand that managing cash flow and reducing operating costs are critical for owner-operators and small fleets. Our financial platform helps truckers:
- See your CPM in the TACH Dashboard to understand your costs and identify opportunities to reduce them.
- Track expenses automatically to identify cost-saving opportunities.
- Get quick cash advances to handle maintenance before it becomes emergency repairs.
- Manage maintenance costs with our network of preferred service providers.
Ready to start reducing your operating costs? Get started with TACH today and join truckers nationwide who are taking control of their finances.
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
