Calculate your true take-home profit on any load.
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Load pay of $2,500 for 850 loaded miles + 50 deadhead miles at 6.5 MPG with diesel at $3.50/gal: Fuel cost = 900/6.5 × $3.50 = $484.62. Operating costs = 900 × $0.50 = $450.00. Net profit = $2,500 - $934.62 = $1,565.38. Profit margin = 62.6%. Profit per mile = $1.74.
A good profit margin for owner-operators is 15-25%. Margins above 20% are excellent. Always calculate profit after ALL expenses including fuel, maintenance, insurance, and operating costs per mile.
Include fuel costs, tolls, lumper fees, operating costs per mile (insurance, maintenance, tires), dispatch fees, and any other trip-specific expenses. Operating cost per mile typically ranges from $0.40 to $0.75.
Negotiate better rates with brokers, reduce deadhead miles by planning return loads, optimize fuel purchases at cheaper stops, maintain your truck to maximize MPG, and track all expenses to find savings.